806517--3/24/2008--PSYCHEMEDICS_CORP

related topics

{product, liability, claim}

{control, financial, internal}

{customer, product, revenue}

{condition, economic, financial}

Negative conditions in the global credit markets may impair the liquidity of a portion of our investment portfolio. We are exposed to potential risks and we will incur costs as a result of the internal control assessment and attestation process mandated by Section 404 of the Sarbanes-Oxley Act of 2002. Our reliance on one supplier for certain raw materials used in our testing procedures could harm our business and prospects. There is a risk that our insurance will not be sufficient to protect us from errors and omissions liability or other claims, or that in the future errors and omissions insurance will not be available to us at a reasonable cost, if at all.

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