894738--10/30/2006--INTERNET_COMMERCE

related topics

{stock, price, share}

{system, service, information}

{product, market, service}

{acquisition, growth, future}

{control, financial, internal}

{property, intellectual, protect}

{regulation, change, law}

{personnel, key, retain}

{interest, director, officer}

Risks Relating to Our Company We may not remain profitable in the future. We must continue to grow our business in order to remain competitive. If we are not successful in selling our products and services, our results of operations will suffer. We may not be successful in competing against our competitors. If we are unable to maintain or replace our existing interconnect arrangements, our results of operations would suffer. We must continue to develop new products and services. We may need to obtain additional financing on satisfactory terms to continue to compete successfully. If we are unable to obtain necessary future capital, our business will suffer. Failure of our third-party providers to provide adequate Internet and telecommunications service could result in significant losses of revenue. We may suffer systems failures and business interruptions that would harm our business. If we are unable to successfully integrate acquisitions, our financial results will suffer. If we lose our net operating loss carryforward of approximately $73.3 million, our financial results will suffer. If we cannot hire and retain highly qualified employees, our business and financial results will suffer. We depend on our intellectual property, which may be difficult and costly to protect. Intellectual property infringement claims against us could harm our business. We must comply in the future with new and costly reporting requirements. Risks Relating to the Internet and Online Commerce Aspects of Our Business If Internet usage does not continue to grow or if its infrastructure fails, our business will suffer. Privacy concerns may prevent customers from using our services. Government regulation and legal uncertainties relating to the Internet could harm our business. The cost of transmitting documents and data over the Internet could increase. Risks Relating to Our Class A Common Stock The market price of our class A common stock is likely to be highly volatile. Shares eligible for future sale by our existing stockholders may adversely affect our stock price making it difficult to sell class A common stock. The market for our class A common stock on the Nasdaq Capital Market may be illiquid, which would restrict the ability to sell shares of class A common stock and could result in increased volatility in the trading prices for our class A common stock. Our Board of Directors can issue preferred stock with rights adverse to the holders of class A common stock. We may have to use significant resources indemnifying our officers and directors or paying for damages caused by their conduct. We might not be able to retire the series C preferred stock, the existence of which may pose an impediment to our future fund raising efforts.

Full 10-K form ▸

894738--10/30/2006--INTERNET_COMMERCE_CORP