753772--3/15/2010--MEDIZONE_INTERNATIONAL

related topics

{stock, price, share}

{control, financial, internal}

{regulation, change, law}

{acquisition, growth, future}

{personnel, key, retain}

{product, liability, claim}

{property, intellectual, protect}

{cost, regulation, environmental}

{product, market, service}

{customer, product, revenue}

{debt, indebtedness, cash}

Forward-Looking Statements and Certain Risks Our consolidated financial statements are prepared using generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. We are a development stage company with significant accumulated deficits and we can expect losses to continue for the foreseeable future. We currently have limited financing to meet our current operating expenses, but will require additional financing in the future to cover our future operating costs. If we are unable to obtain additional financing, we may be required to take out bankruptcy or liquidate the company. Our net operating losses and our lack of revenues will require that we finance our operations through the sale of our securities for the foreseeable future. The sale of equity securities or of securities that are convertible to our common stock will result in possibly significant dilution to our shareholders and may adversely affect the trading prices of our common stock. Our future funding needs will require significant additional capital. If we fail to obtain financing at levels required to pay for full development of our technology, we could be required to scale back or cease operations. Our reliance on patented technology may limit the scope of our protection and may increase the cost of doing business if we are required to enforce our rights under existing and future patents. We may face competition in some of our markets from well-funded and significantly larger companies, some of which enjoy significant name recognition or market share in the pharmaceutical and related industries. We may not be successful in our efforts to compete with these companies. Our business and our proposed business may subject us to the potential for product liability claims if people using our technology suffer bodily injury, including death. Although we intend to insure for this liability, the claims might in some cases exceed the amount of coverage available to us. Our business activities may involve the use and storage of hazardous substances that are subject to government restrictions and regulation, increasing our potential liability to third parties and the cost of doing business in order to comply with applicable regulations. We have only a limited staff, and if we are to succeed in implementing our business plan, we will need to engage and retain trained and qualified staff. While thus far the company has been able to engage and maintain qualified staff, there is no assurance that we will succeed in retaining the personnel needed to meet our needs. We do not own our manufacturing capability and must rely on third parties to manufacture the devices required for our technology. This arrangement results in a certain loss of control over the manufacturing process and may result in problems relating to quality control and warranty issues. Our common stock is subject to the Penny Stock rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock.

Full 10-K form ▸

753772--3/15/2010--MEDIZONE_INTERNATIONAL_INC