749660--3/31/2006--ICAD

related topics

{product, liability, claim}

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{product, candidate, development}

{stock, price, share}

{acquisition, growth, future}

{operation, international, foreign}

{personnel, key, retain}

{loan, real, estate}

{control, financial, internal}

{provision, law, control}

{stock, price, operating}

{cost, regulation, environmental}

{regulation, government, change}

We have incurred significant losses since inception and there can be no assurance that we will be able to achieve and sustain future profitability. Our medical digitizer business has been adversely affected by our acquisition and commercialization of a CAD product line. We may need additional financing to implement our strategy and expand our business. Because a portion of our sales are outside the United States, we are subject to additional risks, including devaluations of foreign currencies, instability in key geographic markets, tariffs and other trade barriers which are not within our control. Because we face intense competition for our products, price discounting often occurs and may adversely affect our operating results. Our products may become obsolete. There may be insufficient demand for the new products that we are currently developing. We depend upon a limited number of suppliers and manufacturers for our products, and certain components in our products may be available from a sole or limited number of suppliers. Provisions of our corporate charter documents and Delaware law could delay or prevent a change of control. The price of our common stock has been and could continue to be volatile. We are subject to extensive regulation with potentially significant costs for compliance. We may not be able to obtain regulatory approval for any of the other products that we may consider developing. Our products may be recalled even after we have received FDA or other governmental approval or clearance. Changes in reimbursement procedures by Medicare or other third-parties may adversely affect our business. The sales cycle for our products is lengthy and unpredictable and our quarterly results are unpredictable. The medical equipment industry is litigious, and we have been and may be sued again for allegedly violating the intellectual property rights of others. We may be unable to protect our intellectual property rights and, consequently, our competitors may benefit from our efforts and compete directly against us. We may be unable to secure licenses for any technology which may be necessary to improve current or future products. Some studies have questioned the efficacy of using mammography as a method to reduce mortality. If mammography proves to be less effective, our business would be seriously harmed. In addition, competing technologies could replace mammography as the preferred method for screening for breast cancer. We may be exposed to significant product liability for which we may not be able to procure sufficient insurance coverage. Our future prospects depend on our ability to retain current key employees and attract additional qualified personnel. Some of our competitors have significantly greater resources and may prevent us from achieving or maintaining significant market share. As the market for CAD grows, competition for mammography products will likely increase. Future sales of shares of our common stock could affect the market price of our common stock and our ability to raise additional capital.

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749660--3/31/2006--ICAD_INC