357108--12/17/2010--IRVINE_SENSORS

related topics

{stock, price, share}

{control, financial, internal}

{property, intellectual, protect}

{regulation, government, change}

{cost, contract, operation}

In September 2010, our common stock was delisted from the Nasdaq Capital Market for non-compliance with Nasdaq s $1.00 per share minimum bid price continued listing requirement and commenced trading on the Over-the-Counter Bulletin Board (the OTCBB ), thereby causing your ability to sell your shares of our common stock to be limited by penny stock restrictions and our ability to raise additional capital to potentially be compromised. Significant sales of our common stock in the public market will cause our stock price to fall. Because our operations currently depend on government contracts and subcontracts, we face additional risks related to contracting with the federal government, including federal budget issues and fixed price contracts, that could materially and adversely affect our business. The significant overseas military operations may require diversions of government research and development funding, thereby causing disruptions to our contracts or otherwise adversely impact our revenues. Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price. We are subject to technological risk from the developments of competitors, and our Patent Sale and License has removed barriers to competition.

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357108--12/17/2010--IRVINE_SENSORS_CORP/DE/