719722--2/26/2008--CARDIODYNAMICS_INTERNATIONAL

related topics

{product, candidate, development}

{product, liability, claim}

{tax, income, asset}

{acquisition, growth, future}

{product, market, service}

{stock, price, share}

{stock, price, operating}

{operation, international, foreign}

{property, intellectual, protect}

{personnel, key, retain}

{customer, product, revenue}

{control, financial, internal}

{regulation, government, change}

{loss, insurance, financial}

{regulation, change, law}

We depend upon our BioZ product line, which is in its early stages of market acceptance. Our success depends in part upon the availability of adequate third-party reimbursement. We must maintain and develop strategic relationships with third parties to increase market penetration of our product lines. Our future financial results could be adversely impacted by asset impairments or other charges. Utilization of our deferred tax assets may be limited and is dependant on future taxable income. We have federal net operating loss carryforwards ( NOLs ) of approximately $50 million for federal income tax purposes. The Tax Reform Act of 1986 contains provisions under section 382 of the Internal Revenue Code that limit the federal NOLs that may be used in any given year in the event of specified occurrences, including significant ownership changes. If these specified events occur we may lose some or all of the tax benefits of these carryforwards. Technological change is difficult to predict and new product transitions are difficult to manage. We depend on management and other key personnel. We may need additional capital, which may be unavailable. We are subject to stock exchange and government regulation. A low stock price could result in our being de-listed from the Nasdaq Market and subject us to regulations that could reduce our ability to raise funds. We may not have adequate intellectual property protection. We face competition from other companies and technologies. If market conditions cause us to reduce the selling price of our products or sensors, our margins and operating results will decrease. We may not receive approvals by foreign regulators that are necessary for international sales. Our quarterly operating results frequently vary due to factors outside our control. Our international sales expose us to unique risks. We may not be able to manage growth successfully. Our limited order backlog makes it difficult to predict sales and plan manufacturing requirements, which can lead to lower revenues, higher expenses and reduced margins. We depend on third parties for development and manufacturing services. Our common stock is subject to price volatility. We have a history of losses and may experience continued losses. We may not continue to receive necessary FDA or other regulatory clearances or approvals. We may not be able to make future acquisitions or successfully integrate any such acquisitions. We are subject to product liability claims and product recalls that may not be covered by insurance. We may face the unavailability of or significantly higher premiums for director and officer liability insurance. We do not know the effects of healthcare reform proposals. We do not intend to pay dividends in the foreseeable future.

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719722--2/26/2008--CARDIODYNAMICS_INTERNATIONAL_CORP