857953--4/2/2007--JMAR_TECHNOLOGIES

related topics

{control, financial, internal}

{product, liability, claim}

{stock, price, share}

{property, intellectual, protect}

{personnel, key, retain}

{customer, product, revenue}

{debt, indebtedness, cash}

{stock, price, operating}

{competitive, industry, competition}

{cost, contract, operation}

{provision, law, control}

{product, candidate, development}

Our working capital line of credit, as well as the obligations under our Preferred Stock, are secured by the grant of a security interest in all of our assets and upon a default the lender may foreclose on all of our assets. Weaknesses in our internal control over financial reporting could result in material misstatements in our financial statements. If our product development programs are not successful, it will harm our business. If our BioSentry business is unsuccessful, it will cause a significant adverse effect on our financial condition and significant accounting write-offs. We depend on third party suppliers of various components for our equipment business and our business will be harmed if the supply of key components is interrupted or discontinued. The success of our business is dependent on our ability to compete effectively, particularly against larger, more established companies with greater resources. A substantial portion of our current revenue depends on sales to a few customers. We have relied on funding from the U.S. Department of Defense for a significant portion of our research and development activities in the past and expect significantly less funding of our new product developments from the government in the future. Our BioSentry product may be subject to various governmental approvals that may limit our ability to market and sell our product. Our quarterly operating results may fluctuate significantly. As a result, we may fail to meet or exceed the expectations of securities analysts and investors, which could cause our stock price to decline. If we lose key personnel or are unable to attract and retain additional, highly skilled personnel required for the expansion of our activities, our business will suffer. Asserting, defending and maintaining intellectual property rights is difficult and costly and the failure to do so could harm our ability to compete and the results of our operations. If our outstanding options and warrants are exercised and if our preferred stock is converted it will result in substantial dilution. If product liability claims are brought which exceed our liability insurance limits our business would be harmed. We do not presently intend to pay cash dividends to our shareholders. Our ability to use our entire net operating loss carryforward is limited by prior changes in ownership and may be further limited in the future. If we issue shares of preferred stock with greater rights than the common stock, it could result in the decrease in market price of the common stock and could delay or prevent a change in control of us.

Full 10-K form ▸

857953--4/2/2007--JMAR_TECHNOLOGIES_INC