701719--3/31/2008--DGSE_COMPANIES

related topics

{cost, operation, labor}

{regulation, change, law}

{system, service, information}

{condition, economic, financial}

{product, market, service}

{regulation, government, change}

{tax, income, asset}

{loss, insurance, financial}

{control, financial, internal}

{debt, indebtedness, cash}

{stock, price, share}

{personnel, key, retain}

{provision, law, control}

{financial, litigation, operation}

{cost, contract, operation}

{capital, credit, financial}

Changes in customer demand for our products and services could result in a significant decrease in revenues. Changes in governmental rules and regulations applicable to the specialty financial services industry could have a negative impact on our lending activities. Fluctuations in our inventory turnover and sales. Changes in our liquidity and capital requirements could limit our ability to achieve our plans. Changes in competition from various sources could have a material adverse impact on our ability to achieve our plans. Our earnings could be negatively impacted by an unfavorable outcome of litigation, regulatory actions, or labor and employment matters. A failure in our information systems could prevent us from effectively managing and controlling our business or serving our customers. A failure of our internal controls and disclosure controls and procedures, or our inability to comply with the requirements of section 404 of the Sarbanes-Oxley Act in a timely fashion could have a material adverse impact on us and our investors confidence in our reported financial information. Changes in general economic conditions could negatively affect loan performance and demand for our products and services. Interest rate fluctuations could increase our interest expense. Our success depends on our ability to attract, retain and motivate management and other skilled employees. The voting power in our company is substantially controlled by a small number of stockholders, which may, among other things, delay or frustrate the removal of incumbent directors or a takeover attempt, even if such events may be beneficial to our stockholders. We could be subject to sales taxes, interest and penalties on interstate sales for which we have not collected taxes. We may incur losses as a result of accumulating inventory. If we experience an increase in the rescission of sales, our revenue and profitability could decrease. Our planned expansion and enhancement of our website and internet operations may not result in increased profitability. Our websites may be vulnerable to security breaches and similar threats which could result in our liability for damages and harm to our reputation. Changes to financial accounting standards and new exchange rules could make it more expensive to issue stock options to employees, which would increase compensation costs and may cause us to change our business practices. We are subject to new corporate governance and internal control reporting requirements, and our costs related to compliance with, or our failure to comply with existing and future requirements could adversely affect our business. The revolving credit facilities with Stanford International Bank Ltd. and Texas Capital Bank, N.A. is each collateralized by a general security interest in our assets. If we were to default under the terms of either credit facility, the lender would have the right to foreclose on our assets. We have not paid dividends on our common stock in the past and do not anticipate paying dividends on our common stock in the foreseeable future.

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701719--3/31/2008--DGSE_COMPANIES_INC