737561--4/8/2010--UCI_MEDICAL_AFFILIATES

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We can provide no assurance that our medical centers will be able to compete effectively with other existing healthcare providers. If a regulatory authority finds that our organization and relationships do not comply with existing or future laws and regulations, our operations could be materially adversely affected. Changes to the laws, regulations, and policies governing government-sponsored healthcare programs could materially adversely affect our operations We are subject to healthcare fraud and abuse regulations that could result in significant liability, require us to change our business practices and restrict our operations in the future. We are required to comply with laws governing the transmission, security and privacy of healthcare information that require significant compliance costs, and any failure to comply with these laws could result in material criminal and civil penalties. In 2008, we determined that our previously issued consolidated financial statements should no longer be relied upon and we restated our consolidated financial statements for the six year period ended September 30, 2007. The restatements subjected us to significant cost and a number of additional risks and uncertainties, including increased costs for accounting and legal fees and the increased possibility of legal proceedings. Departures of our key personnel or directors may impair our operations. Because of the nature of our business, we run the risk that we will be unable to collect the fees that we have earned. We are subject to certain special risks in connection with goodwill reported on our balance sheet. Changes in accounting standards could impact reported earnings. You may have difficulty in selling your shares because of the absence of an active public market. The absence of a public market makes the price of our common stock particularly volatile and susceptible to market fluctuations Stockholders may have difficulty selling their shares because our common stock is a penny stock and is subject to special SEC rules that make transactions in our common stock burdensome for broker-dealers. The market price of our common stock may fluctuate widely in the future. Anti-takeover provisions in our certificate of incorporation and state corporate laws could deter or prevent take-over attempts by a potential purchaser of our common stock and deprive you of the opportunity to obtain a takeover premium for your shares. We do not expect to pay dividends on our common stock in the foreseeable future Stockholders may suffer dilution in their interests in our common stock if we offer additional shares of common stock in the future or if certain third parties exercise their option rights to acquire additional shares of our common stock Certain affiliates have the ability to exercise substantial influence. We are dependent upon the good reputation of our physicians. Our revenues and profits could be diminished if we lose the services of key physicians. We may become subject to claims of medical malpractice for which our insurance coverage may not be adequate. Such claims could materially increase our costs and reduce our profitability. Our business is concentrated in specific geographic locations and could be affected by a depressed economy in these areas. Terrorist attacks, acts of war, natural disasters or other catastrophic events may adversely affect our operating results and financial condition.

Full 10-K form ▸

737561--4/8/2010--UCI_MEDICAL_AFFILIATES_INC