759153--12/14/2006--PARTICLE_DRILLING_TECHNOLOGIES

related topics

{stock, price, share}

{property, intellectual, protect}

{control, financial, internal}

{product, market, service}

{competitive, industry, competition}

{stock, price, operating}

{debt, indebtedness, cash}

We have a limited operating history and no revenues and are subject to risks inherent in a new business enterprise. As a result, we have not demonstrated to date that we can fully implement our business plan or that the PID technology will be profitable in a commercial application. We have limited sources of liquidity and may not be able to obtain sufficient funding to realize positive cash flows The PID System is a new technology and it may not be fully accepted in the marketplace to the degree anticipated by management. We are obligated to make certain royalty payments that will limit our profitability. We rely on the intellectual property rights we acquired to the PID technology and we may not be able to successfully protect or defend our intellectual property rights. Our competitive position depends to a significant extent on our ability to assert and defend our intellectual property rights in order to restrict other competitors from offering similar services. We may face intense competition in our industry from companies with a more established reputation and greater financial resources than us. Our stockholders may experience substantial dilution as a result of the exercise of outstanding options and warrants to purchase our common stock or future issuances of additional shares of our common stock, any of which could have an adverse effect on the market price of our common stock. Our common stock has experienced, and may continue to experience, price volatility. The limited trading volume of our common stock may contribute to this price volatility. We presently do not intend to pay cash dividends on our common stock.

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759153--12/14/2006--PARTICLE_DRILLING_TECHNOLOGIES_INC/NV