813634--4/28/2008--INTERNATIONAL_ABSORBENTS

related topics

{product, market, service}

{cost, regulation, environmental}

{control, financial, internal}

{debt, indebtedness, cash}

{condition, economic, financial}

{stock, price, operating}

{stock, price, share}

{regulation, change, law}

{operation, natural, condition}

{personnel, key, retain}

{property, intellectual, protect}

{acquisition, growth, future}

{provision, law, control}

{product, liability, claim}

{customer, product, revenue}

{operation, international, foreign}

We are still building our market presence and are subject to substantial competition that could inhibit our ability to succeed as planned. We may be adversely affected by trends in the retail industry. We depend on a few customers for a significant portion of our business. We cannot be certain that our product innovations and marketing successes will continue. Competition in our industries may hinder our ability to execute our business strategy, maintain profitability, or maintain relationships with existing customers. Additional increases in our costs of goods sold, including the costs of raw materials, transportation costs or labor expenses, could have an adverse effect on our financial condition Rising energy prices could adversely affect our operating results. Any downturn in the U.S. economy generally, and the retail sector in particular, would substantially harm our business. Our business is subject to many regulations and noncompliance could be costly. We have significant indebtedness which impacts our business in several ways, and the nonpayment of which could harm our business. If we fail to maintain an effective system of internal and disclosure controls, we may not be able to accurately report our financial results or prevent fraud. If we need to raise additional capital for our operating plan, our business would be harmed if we were unable to do so on acceptable terms The indentures governing our bonds and bank debt financing includes financial covenants that restrict certain of our activities and impose certain financial tests that we must meet in order to be in compliance with their terms. The loss of key senior management personnel could negatively affect our business. Our future growth may depend on our ability to penetrate new domestic and international markets, which could reduce our profitability. The inability to successfully obtain or protect our patents could harm our competitive advantage. The products that we manufacture could expose us to product liability claims, and our manufacturing process may pose additional risks. We will incur substantial costs to comply with the requirements of the Sarbanes-Oxley Act of 2002, and our internal controls may not be in compliance with all of the requirements prior to the currently proposed compliance date. Natural disasters could decrease our manufacturing capacity. The price for our common shares may continue to be volatile. It might be difficult for a third-party to acquire us even if doing so would be beneficial to our shareholders. Our results of operations could vary as a result of the methods, estimates, and judgments we use in applying our accounting policies or as the result of the adoption of new accounting pronouncements. The liquidity of our stock depends in part on our continued listing with the American Stock Exchange. As a result of our principal executive offices being located in Canada, and a majority of our directors and certain of our officers residing in Canada, investors may find it difficult to enforce, within the United States, any judgments obtained against our company or our directors or officers.

Full 10-K form ▸

813634--4/28/2008--INTERNATIONAL_ABSORBENTS_INC