791115--3/17/2006--COACH_INDUSTRIES_GROUP

related topics

{loan, real, estate}

{acquisition, growth, future}

{cost, regulation, environmental}

{personnel, key, retain}

{loss, insurance, financial}

{condition, economic, financial}

{capital, credit, financial}

{control, financial, internal}

{customer, product, revenue}

{competitive, industry, competition}

{financial, litigation, operation}

We have a limited operating history with significant losses and expect losses to continue for the foreseeable future. We will require additional financing to sustain our operations and without it we may not be able to continue operations. Our inability to raise additional working capital, or to raise it on terms which are acceptable to us, or to raise it in a timely manner would negatively impact our ability to fund our operations, to generate revenues, and to otherwise execute our business plan, leading to the reduction or suspension of our operations and ultimately our going out of business. Delinquencies and credit losses affect our financial performance and results of operations. We lend to privately owned small and medium-sized companies, which can be higher risk borrowers. An economic downturn could result in lower demand for our services and negatively affect our receivables. Economic difficulties within a particular industry could impair our profitability and asset quality. Any future change in the Internal Revenue Service guidelines for independent contractors could have a negative affect on CDS business. Fluctuations in the price of fuel impacts couriers and limousine operators in the short-term. Legal proceedings and related costs could negatively affect our financial results. Increases in the Federal funds rate may decrease our profitability in our lease finance business. Increased safety, emissions or other regulation resulting in higher costs or sales restrictions, could adversely affect our net profits in our specialty division. Failure to obtain supplier agreements and financing for daily rental financing business and financing for the daily rental business. We will face intense competition from competitors that have greater financial, technical and marketing resources. These competitive forces may impact our projected growth and ability to generate revenues and profits, which would have a negative impact on our business and the value of your investment. We plan to grow rapidly, which will place strains on our management team and other company resource to both implement more sophisticated managerial, operational and financial systems, procedures and controls and to train and manage the personnel necessary to implement those functions. Our inability to manage our growth could impede our ability to generate revenues and profits and to otherwise implement our business plan and growth strategies, which would have a negative impact on our business. We may undertake acquisitions to expand our business that may pose risks to our business and dilute the ownership of our existing stockholders. We are dependent for our success on a few key executive officers. Our inability to retain those officers would impede our business plan and growth strategies, which would have a negative impact on our business and the value of your investment. Our inability to hire qualified personnel could impede our ability to generate revenues and profits and to otherwise implement our business plan and growth strategies, which would have a negative impact on our business. Should one or more of the foregoing risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.

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791115--3/17/2006--COACH_INDUSTRIES_GROUP_INC