849146--9/15/2010--Lifevantage

related topics

{stock, price, share}

{customer, product, revenue}

{financial, litigation, operation}

{cost, regulation, environmental}

{product, market, service}

{property, intellectual, protect}

{product, liability, claim}

{regulation, government, change}

{condition, economic, financial}

{debt, indebtedness, cash}

{personnel, key, retain}

{product, candidate, development}

{operation, international, foreign}

{regulation, change, law}

{acquisition, growth, future}

We may need to raise additional capital. Economic conditions, including the current financial crisis and declining consumer confidence and spending, could harm our business. Our failure to comply with certain covenants contained in our convertible debentures due November 2011 could require us to redeem such debentures at a premium. We could be exposed to certain environmental liabilities due to our past operations and property ownership. Risk Factors Relating to our Business and Industry We primarily depend on a single product for our revenue. The dietary supplement market is highly competitive. Our network marketing sales channel may not be successful. The loss of key high-level distributors could negatively impact the growth of our network marketing sales channel. Independent distributor activities that violate laws could result in governmental actions against us and could otherwise harm our business. Network marketing is heavily regulated. Our business is subject to strict government regulations. Future laws may hinder or prohibit the production or sale of our existing products and any future products. Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brand. Other parties might claim that we infringe on their intellectual property rights. Unfavorable publicity could materially hurt our business. We are subject to the risk of investigatory and enforcement action by the FTC. Challenges by regulatory authorities or private parties to the form of our network marketing system or other regulatory compliance issues could harm our business. Our business is susceptible to product liability claims. We are dependent upon third parties to manufacture our product. Raw material for our product may be difficult to obtain or expensive. Product returns may adversely affect our business. The loss of key personnel could negatively impact our business. Economic, political, and other risks associated with our international operations could adversely affect our revenues and international growth prospects. Risks Related to Ownership of Our Common Stock Our common stock is currently classified as penny stock. If we need additional financing in the future and are required to issue securities that are priced at less than the conversion price of our convertible debentures or the exercise price of warrants, it will result in additional dilution. If the holders of our outstanding convertible debentures, warrants and options convert and exercise their securities into common stock, we will issue up to 74,967,425 shares, which will materially dilute the voting power of our currently outstanding common stock and could cause our stock price to decline.

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849146--9/15/2010--Lifevantage_Corp