826683--2/16/2006--MCF

related topics

{stock, price, share}

{loan, real, estate}

{stock, price, operating}

{personnel, key, retain}

{acquisition, growth, future}

{system, service, information}

{cost, operation, labor}

{control, financial, internal}

{provision, law, control}

{loss, insurance, financial}

{financial, litigation, operation}

{competitive, industry, competition}

{customer, product, revenue}

{regulation, change, law}

It is difficult to evaluate our business and prospects because we have a limited operating history. We may not be able to maintain a positive cash flow and profitability. The markets for securities brokerage and investment banking services are highly competitive. If we are not able to compete successfully against current and future competitors, our business and results of operations will be adversely affected. We may experience reduced revenue due to declining market volume, securities prices and liquidity, which can also cause counterparties to fail to perform. We may experience significant losses if the value of our marketable security positions deteriorates. We may experience significant fluctuations in our quarterly operating results due to the nature of our business and therefore may fail to meet profitability expectations. We have registered one of our subsidiaries as a securities broker-dealer and, as such, are subject to substantial regulations. If we fail to comply with these regulations, our business will be adversely affected. Our business may suffer if we lose the services of our executive officers or operating personnel. Our business is dependent on the services of skilled professionals, and may suffer if we can not recruit or retain such skilled professionals. Our compensation structure may negatively impact our financial condition if we are not able to effectively manage our expenses and cash flows. We may be dependent on a limited number of customers for a significant portion of our revenue. We may suffer losses through our investments in securities purchased in secondary market transactions or private placements. We may be unable to successfully integrate acquired businesses into our existing business and operations. We may be unable to effectively manage rapid growth that we may experience, which could place a continuous strain on our resources and, accordingly, adversely affect our business. Our business and operations would suffer in the event of system failures. We are highly dependent on proprietary and third-party systems; therefore, system failures could significantly disrupt our business. Our common stock price may be volatile, which could adversely affect the value of your shares. Our risk management policies and procedures may leave us exposed to unidentified or unanticipated risk. We could be sued in a securities class action lawsuit. Your ability to sell your shares may be restricted because there is a limited trading market for our common stock. Anti-takeover provisions of the Delaware General Corporation Law could discourage a merger or other type of corporate reorganization or a change in control even if it could be favorable to the interests of our stockholders. Because our Board of Directors can issue common stock without stockholder approval, you could experience substantial dilution. Our ability to issue additional preferred stock may adversely affect your rights as a common stockholder and could be used as an anti take-over device. Our officers and directors exercise significant control over our affairs, which could result in their taking actions of which other stockholders do not approve. Any exercise of outstanding stock options and warrants will dilute then-existing stockholders percentage of ownership of our common stock.

Full 10-K form ▸

826683--2/16/2006--MCF_CORP