825322--10/13/2010--MPHASE_TECHNOLOGIES_INC

related topics
{interest, director, officer}
{product, candidate, development}
{property, intellectual, protect}
{control, financial, internal}
{regulation, government, change}
{personnel, key, retain}
{provision, law, control}
{stock, price, share}
{capital, credit, financial}
{product, market, service}
RISKS RELATED TO FINANCIAL ASPECTS OF OUR BUSINESS The Company has been forced to curtail development of all products except its SmartNanoBattery and Emergency Flashlight in order to conserve financial resources mPhase's stock price has suffered significant declines during the past ten years and remains volatile. We may not be able to raise sufficient capital to market our SmartNanoBattery and Emergency Flashlight applications of our technology on any meaningful scale. We have reported net operating losses for each of our fiscal years from our inception in 1996 through the fiscal year ended June 30, 2010 and may not be able to operate profitability in the future. Economic support from affiliated companies has been significant. Our independent auditor's report expresses doubt about our ability to continue as a going concern. Our common stock is subject to significant dilution upon issuance of shares we have reserved for future issuance. RISK FACTORS RELATED TO OUR OPERATIONS We have been a development-stage company since our inception in 1996 and have not to date had a significant or successful deployment of any of our flagship products, including our SmartNanoBattery and our Emergency Flashlight products. The loss of key personnel could adversely affect our business We may incur substantial expenditures in the future in order to protect our intellectual property. RISKS RELATED TO OUR TARGETED MARKETS The sale of new high technology products often has a long lead-time and a multiplicity of risks. The science of nanotechnology is at a very early stage as a discipline and is subject to great uncertainty and swift changes in technology. We may not be able to create new products from our intellectual property using microfluidics that will be acceptable in water purification, oil separation from water and other environment markets. The commercialization of many applications of our technologies will depend on our ability to establish strategic relationships with commercial partners. Our SmartBattery and our potential applications of our technology are components of end products and therefore our products are tied to the success of such end products.

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