896429--9/27/2007--USA_TECHNOLOGIES

related topics

{customer, product, revenue}

{stock, price, share}

{system, service, information}

{product, market, service}

{debt, indebtedness, cash}

{product, liability, claim}

{control, financial, internal}

{financial, litigation, operation}

{regulation, government, change}

{interest, director, officer}

{personnel, key, retain}

{loan, real, estate}

{property, intellectual, protect}

We have a history of losses since inception and if we continue to incur losses the price of our shares can be expected to fall. Our existence is dependent on our ability to raise capital that may not be available. We may be required to incur further debt to meet future capital requirements of our business. Should we be required to incur additional debt, the restrictions imposed by the terms of our debt could adversely affect our financial condition and our ability to respond to changes in our business. We may be required to incur further debt to meet future capital requirements of our business. Should we be required to incur additional debt, the restrictions imposed by the terms of our debt could adversely affect our financial condition and our ability to respond to changes in our business. The loss of one or more of our key customers could significantly reduce our revenues and profits. We depend on our key personnel and if they would leave us, our business could be adversely affected. Our dependence on proprietary technology and limited ability to protect our intellectual property may adversely affect our ability to compete. Competition from others with greater resources could prevent the Company from increasing revenue and achieving profitability. The termination of any of our relationships with third parties upon whom we rely for supplies and services that are critical to our products could adversely affect our business and delay achievement of our business plan. A disruption in the manufacturing capabilities of our third-party manufacturers, suppliers or distributors would negatively impact our ability to meet customer requirements. A disruption in the manufacturing capabilities of our third-party manufacturers, suppliers or distributors would negatively impact our ability to meet customer requirements. Our reliance on our wireless telecommunication service provider exposes us to a number of risks over which we have no control, including risks with respect to increased prices and termination of essential services. Our products may contain defects that may be difficult or even impossible to correct, which could result in lost sales, additional costs and customer erosion. Our products may contain defects that may be difficult or even impossible to correct, which could result in lost sales, additional costs and customer erosion. We may accumulate excess or obsolete inventory that could result in unanticipated price reductions and write downs and adversely affect our financial results. We may accumulate excess or obsolete inventory that could result in unanticipated price reductions and write downs and adversely affect our financial results. We may not be able to adapt to changing technology and our customers technology needs. Our products may fail to gain widespread market acceptance. As a result, we may not generate sufficient revenues or profit margins to become successful. Our internal control over financial reporting may not be effective and our independent registered public accounting firm may not be able to certify as to its effectiveness, which could have a significant and adverse effect on our business and reputation. Security is vital to our customers and therefore breaches in the security of transactions involving our products or services could adversely affect our reputation and results of operations. Security is vital to our customers and therefore breaches in the security of transactions involving our products or services could adversely affect our reputation and results of operations. Credit card issuers have promulgated credit card security guidelines as part of their ongoing efforts to battle identity theft and credit card fraud. We are subject to laws and regulations that affect the products, services and markets in which we operate. Failure by us to comply with these laws or regulations would have an adverse effect on our business, financial condition, or results of operations. We do not expect to pay cash dividends in the foreseeable future and therefore investors should not anticipate cash dividends on their investment. Sales of shares eligible for future sale from exercise of warrants and options and our 2006-B Common Stock Agreement could depress the market price of our Common Stock. The limited prior public market and trading market may cause possible vola tility in our stock price The substantial market overhang of our shares will tend to depress the market price of our shares. Director and officer liability is limited. Our publicly-filed reports are reviewed by the SEC from time to time and any significant changes required as a result of any such review may result in material liability to us, and have a material adverse impact on the trading price of our Common Stock. Our publicly-filed reports are reviewed by the SEC from time to time and any significant changes required as a result of any such review may result in material liability to us, and have a material adverse impact on the trading price of our Common Stock. We are subject to laws and regulations that affect the products, services and markets in which we operate. Failure by us to comply with these laws or regulations would have an adverse effect on our business, financial condition, or results of operations.

Full 10-K form ▸

896429--9/27/2007--USA_TECHNOLOGIES_INC