798600--3/28/2008--BRANDPARTNERS_GROUP

related topics

{product, market, service}

{stock, price, share}

{acquisition, growth, future}

{provision, law, control}

{capital, credit, financial}

{customer, product, revenue}

{system, service, information}

{debt, indebtedness, cash}

{cost, contract, operation}

{condition, economic, financial}

{control, financial, internal}

{personnel, key, retain}

{cost, operation, labor}

The business of providing merchandising, design/build, creative/point of sale, furniture, and branding/marketing services to financial services institutions and traditional retailers is highly competitive. If we are not able to compete effectively, our revenues and profit margins will be adversely affected There can be no assurances that we will be successful in our efforts to expand and diversify our revenue base or enter into new partnerships to further expand our business. A significant or prolonged economic downturn could have a materially adverse effect on our revenues and profit margin. We derive a large portion of our revenues from the financial services industry, which has consolidated in recent years, and if it continues to consolidate, we may be adversely affected by a reduction in available market share. The profitability of our engagements with clients may not meet our expectations. The loss of a significantly large client or several clients could have a materially adverse effect on our revenues. In order to grow our business, we may need to do so in part by acquisitions, which may be difficult to integrate or manage with our existing businesses, which may harm our financial results or reputation in the marketplace. Our business will be negatively affected if we are not able to keep pace with marketing changes and the needs of our clients. If our clients or third parties are not satisfied with our services, we may face damage to our professional reputation, or legal liability and payment delays. The nature of our design/build work involves the use of a large number of subcontractors, which in turn, could have an adverse impact on the profitability of any given project. The loss of key employees could damage or result in the loss of client relationships and adversely affect our business. If we fail to establish and maintain alliances for developing, marketing, and delivering our services, our ability to increase our revenues and profitability may suffer. Increases in labor and material costs could result in a decline in profitability. An increase in borrowing costs may have an adverse impact on our core business. The price of our shares may be adversely affected by the public sale of a significant number of the shares eligible for future sale. We may be required to repurchase certain warrants or underlying warrant shares. We have incurred losses in the past, and we may incur losses in the future. We may require additional financing to sustain our business operations or implement business initiatives in the future. We are dependent upon our current credit facility to maintain our operations. We are subject to a subordinate financing arrangement that requires quarterly interest payments and matures in October 2009, at which time we will be required to make a payment of approximately $6.8 million to the lender. Shareholders of our common stock may face dilution of their holdings. Our common stock is subject to the penny stock rules of the SEC, and the trading marketing in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock. Our certificate of incorporation places limitations on the liability of our directors. Certain provisions in our certificate of incorporation and by-laws may make it more difficult to effectuate change in the composition of our Board.

Full 10-K form ▸

798600--3/28/2008--BRANDPARTNERS_GROUP_INC