723889--3/29/2010--MICROFLUIDICS_INTERNATIONAL

related topics

{customer, product, revenue}

{competitive, industry, competition}

{product, market, service}

{control, financial, internal}

{regulation, change, law}

{stock, price, share}

{property, intellectual, protect}

{product, liability, claim}

{product, candidate, development}

{operation, international, foreign}

{condition, economic, financial}

{personnel, key, retain}

{stock, price, operating}

{debt, indebtedness, cash}

We have experienced operating losses in four of our last five fiscal years, including the fiscal year ended December 31, 2009, and we may not be able to achieve consistent profitability in the future. The Company must remain cash-flow positive. Increased concerns about the financial markets, economic conditions, and corporate profits may exacerbate certain risks affecting our business. The failure of any banking institution in which we deposit our funds or the failure of such banking institution to provide services in the current economic environment could have a material adverse effect on our results of operations, financial condition or access to borrowings. The occurrence of an event of default under our financing arrangements could result in substantial losses to our stockholders. We face intense competition in many of our markets. If we fail to retain key personnel and hire, train and retain qualified employees, we may not be able to compete effectively, which could result in reduced revenue or increased costs. We may be unsuccessful in developing new products for existing markets. We may be unsuccessful in launching new products or expanding product offerings. Our future growth is dependent upon the development of new products, which require significant research and development, and customer testing, all of which are very expensive and time consuming. We are dependent on a relatively small number of customers for a significant portion of our net sales. We rely on suppliers, vendors and subcontractors. Many of our current and potential customers are from the pharmaceutical and biotechnology industries and are subject to risks faced by those industries. We have only one manufacturing facility. We rely on our trade secrets to protect our technology. We have recently filed patent applications for our MRT Technology. If we are unable to obtain or maintain patent protection or if our patents do not provide protection against competitive products of our MRT Technology, our results of operations may be adversely affected. We may be subjected to increased government regulation that could affect our ability to sell our products outside of the United States. Our stock is listed on the OTC Bulletin Board and our stockholders may have limited liquidity. Our ownership structure includes several investors who own large blocks of common stock or convertible securities whose interests and rights in our company may differ in important respects from those of our other common stock investors Our quarterly revenues and stock performance are variable. We allow our customers to lease some of our products and those leases may not turn into sales. We may be subject to product liability claims from our customers or by persons harmed by our customers' products. Our international business operations expose us to a variety of risks. We may experience difficulties in the future in complying with Sarbanes-Oxley Section 404 ("Section 404"); and continued implementation and maintenance of internal controls necessary for continued compliance with Section 404 may result in our incurring of additional costs. Future changes in financial accounting standards may adversely affect our reported results of operations If our accounting estimates are not correct, our financial results could be adversely affected.

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723889--3/29/2010--MICROFLUIDICS_INTERNATIONAL_CORP