847383--6/12/2009--NEW_FRONTIER_MEDIA

related topics

{capital, credit, financial}

{property, intellectual, protect}

{acquisition, growth, future}

{system, service, information}

{condition, economic, financial}

{product, market, service}

{personnel, key, retain}

{financial, litigation, operation}

{tax, income, asset}

{provision, law, control}

{operation, international, foreign}

{customer, product, revenue}

The loss of any of our current major customers, or our inability to maintain or negotiate at renewal or otherwise favorable contractual terms with these customers, could have a material adverse effect on our financial position and results of operations. We rely on third party service providers to deliver our content to our customers via satellite uplink services. If this service were disrupted, it could cause us to lose subscriber revenue and adversely affect our financial position and results of operations. If we are unable to compete effectively with other forms of adult and non-adult entertainment, we will not be able to sustain or increase revenue. The continued addition of new competitors to our business could have a material adverse affect on our operating performance. We may incur costs to defend ourselves against legal claims initiated in connection with our distribution of adult-themed content. Increased government regulation in the United States and abroad could impede our ability to deliver our content and expand our business. Continued imposition of tighter processing restrictions by the various credit card associations and acquiring banks could make it more difficult to generate revenue from our Direct-to-Consumer segment. If the credit card companies that process transactions for our Direct-to-Consumer segment experience liquidity issues or are unable to continue to operate as a going concern through the current economic downturn, we may be unable to recover funds due to us from these credit card companies. If the Film Production segment produces, acquires or represents film content that is not well-received by our customers, we may not be able to re-coup the investments made in the film. Antitakeover provisions in our Amended and Restated Articles of Incorporation, as amended, and our Rights Agreement may discourage or prevent a change of control. If we are not able to retain our key executives it will be more difficult for us to manage our operations and our financial position or result of operations could be adversely affected. Our inability to identify, fund the investment in, and commercially exploit new technology could have an adverse impact on our financial position and results of operations. Negative publicity, lawsuits or boycotts by opponents of adult content could adversely affect our financial position and results of operations and discourage investors from investing in our publicly traded securities. Because we are involved in the adult programming business, it may be more difficult for us to raise money or attract market support for our stock. We may be unable to protect our intellectual property rights or others may claim that we are infringing on their intellectual property. If we experienced system failures, the services we provide to our customers could be delayed or interrupted, which could harm our business reputation and result in a loss of customers. Our goodwill, intangible assets and other long-lived assets may have further impairment losses. We may pursue acquisitions, joint ventures, new services and other strategic transactions and activities to complement or expand our business and add shareholder value which may not be successful. Current market volatility and difficult economic conditions may materially and adversely impact our business and results of operations.

Full 10-K form ▸

847383--6/12/2009--NEW_FRONTIER_MEDIA_INC