799165--3/16/2010--TGC_INDUSTRIES

related topics

{stock, price, operating}

{condition, economic, financial}

{personnel, key, retain}

{system, service, information}

{control, financial, internal}

{stock, price, share}

{customer, product, revenue}

{gas, price, oil}

{product, market, service}

{provision, law, control}

{operation, international, foreign}

{competitive, industry, competition}

{debt, indebtedness, cash}

{capital, credit, financial}

{cost, operation, labor}

{product, liability, claim}

{loss, insurance, financial}

{regulation, change, law}

{regulation, government, change}

We have a history of losses, and we may incur losses again. The current economic downturn could adversely affect our revenues and cash flows Our revenues and operating results can be expected to fluctuate from period to period. We are dependent upon significant customers. We are dependent upon significant suppliers. We receive revenues from customers who engage consultants for processing and interpreting the seismic data we provide. We face intense competition in our business from companies with greater financial resources. We are subject to Canadian foreign currency exchange rate risk. Technological change in our business creates risks of technological obsolescence and requirements for future capital expenditures. If we are unable to keep up with these technological advances, we may not be able to compete effectively. We are dependent on our management team and key employees, and the loss of any of them could harm our business. Certain members of our management team are not subject to employment or non-competition agreements and may leave our employment at any time. We extend credit to our customers without requiring collateral, and a default by a customer could have a material adverse effect on our operating revenues. Certain of our core assets are pledged as collateral for short term notes that require large monthly payments. We may be subject to liability claims that are not covered by our insurance. We are subject to the requirements of Section 404 of the Sarbanes-Oxley Act. If we are unable to maintain compliance with Section 404 or if the costs related to maintaining compliance are significant, our profitability, stock price, and results of operations and financial condition could be materially adversely affected. We and our customers may be adversely affected by the current recession. The current recession could have a material adverse effect on our financial results and proposed plan of operations and could lead to further significant fluctuations in the demand for and pricing of oil and gas. Reduced demand and pricing pressures could adversely affect the financial condition and results of operations of our customers and their ability to purchase our services. We are not able to predict the timing, extent, and duration of the economic cycles in the markets in which we operate. We derive nearly all of our revenues from companies in the oil and natural gas exploration and development industry, a historically cyclical industry, with levels of activity that are significantly affected by the levels and volatility of oil and natural gas prices. The high fixed costs of our operations could result in operating losses. Our operations are subject to delays related to obtaining land access rights of way from third parties which could affect our results of operations. Our business is subject to government regulation which may adversely affect our future operations. Risks Related To Our Common Stock Our common stock has experienced, and may continue to experience, price volatility and low trading volume. Our officers and directors own a large percentage of our common stock, and they may exercise control over our business and affairs. Certain provisions of our Restated Articles of Incorporation may make it difficult for a third party to acquire us or may adversely impact your rights as a common shareholder. We do not intend to pay cash dividends on our common stock in the foreseeable future, and therefore only appreciation of the price of our common stock will provide a return to our shareholders.

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799165--3/16/2010--TGC_INDUSTRIES_INC