771999--3/29/2007--DOCUMENT_SECURITY_SYSTEMS

related topics

{property, intellectual, protect}

{stock, price, share}

{acquisition, growth, future}

{product, market, service}

{provision, law, control}

{product, candidate, development}

{competitive, industry, competition}

{personnel, key, retain}

{control, financial, internal}

We have a limited operating history with our business model, which limits the information available to you to evaluate our business. If we lose our current litigation, we may lose certain of our technology rights which may affect our business plan. If we lose our current infringement litigation we may be liable for significant legal costs of our counterparts. If we are unable to adequately protect our intellectual property, our competitive advantage may disappear. We may face intellectual property infringement or other claims against us, our customers or our intellectual property that could be costly to defend and result in our loss of significant rights. If our products and services do not achieve market acceptance, we may not achieve our revenue and net income goals in the time prescribed or at all. The results of our research and development efforts are uncertain and there can be no assurance of the commercial success of our products. Changes in document security technology and standards could render our applications and services obsolete. The market in which we operate is highly competitive, and we may not be able to compete effectively, especially against established industry competitors with greater market presence and financial resources. Our growth strategy depends, in part, on our acquiring complementary businesses and assets and expanding our existing operations to include manufacturing capabilities, which we may be unable to do. If we fail to retain our key personnel and attract and retain additional qualified personnel, we might not be able to pursue our growth strategy. If we do not successfully expand our sales force, we may be unable to increase our revenues. Future growth in our business could make it difficult to manage our resources. We cannot predict our future capital needs and we may not be able to secure additional financing. Risks Related to Our Stock Provisions of our certificate of incorporation and agreements could delay or prevent a change in control of our company. We have a large number of authorized but unissued shares of common stock, which our management may issue without further stockholder approval, thereby causing dilution of your holdings of our common stock. The exercise of our outstanding options and warrants and vesting of restricted stock awards may depress our stock price. We do not intend to pay cash dividends.

Full 10-K form ▸

771999--3/29/2007--DOCUMENT_SECURITY_SYSTEMS_INC