912607--7/2/2007--MACE_SECURITY_INTERNATIONAL

related topics

{gas, price, oil}

{stock, price, share}

{regulation, government, change}

{provision, law, control}

{product, liability, claim}

{acquisition, growth, future}

{loan, real, estate}

{control, financial, internal}

{stock, price, operating}

{loss, insurance, financial}

{operation, natural, condition}

{property, intellectual, protect}

{debt, indebtedness, cash}

{personnel, key, retain}

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{customer, product, revenue}

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Risks Related to Our Business If we do not raise additional capital, we may need to substantially reduce the scale of our operations and curtail our business plan If we are not able to manage growth, our business plan may not be realized. We have debt secured by mortgages against our property, which can be foreclosed upon if we default on the debt. Our loans with Chase have financial covenants that restrict our operations, and which can cause our loans to be accelerated. We have reported net losses in the past. If we continue to report net losses, the price of our common stock may decline, or we could go out of business. If we lose the services of our executive officers, our business may suffer. If our insurance is inadequate, we could face significant losses. Risks Related to our Security Segment If we are not able to operate our electronic surveillance products operations effectively, our business will suffer. We could become subject to litigation regarding intellectual property rights, which could seriously harm our business. If our original equipment manufacturers fail to adequately supply our products, our security products sales may suffer. If people are injured by our consumer safety products, we could be held liable and face damage awards. If people are injured by our consumer safety products, we could be held liable and face damage awards. If governmental regulations change or are applied differently, our business could suffer. Risks Related to our Car and Truck Wash Segment We face a criminal investigation regarding the hiring of undocumented workers at our car washes that could result in fines and penalties. Our car wash work force may expose us to claims that might adversely affect our business, financial condition and results of operations; our insurance coverage may not cover all of our potential liability. If consumer demand for our car wash service drops, our business will suffer. We face significant competition and if we cannot compete effectively we may lose money and the value of our securities could decline. Our car wash operations face governmental regulations, including environmental regulations, and if we fail to or are unable to comply with those regulations, our business may suffer. If our car wash equipment is not maintained, our car washes will not be operable. Risk Related to the Sale of our Car and Truck Wash Segment If we sell our Car and Truck Wash Segment, our revenues will decrease and our business may suffer. Risks Related to our Stock Our stock price has been, and likely will continue to be, volatile and your investment may suffer a decline in value. We have failed to file our Form 10-K for the year ended December 31, 2006 and our Form 10-Q for the quarter ended March 31, 2007 when required, and the failure may result in the loss of our listing on the Nasdaq National Market. The loss of our Nasdaq National Market listing would make our stock significantly less liquid and would adversely affect its value. We could lose our listing on the Nasdaq Global Market if our stock price falls below $1.00 for 30 consecutive days, and the loss of the listing would make our stock significantly less liquid and would affect its value. Because we are a Delaware corporation, it may be difficult for a third party to acquire us, which could affect our stock price. Because we are a Delaware corporation, it may be difficult for a third party to acquire us, which could affect our stock price. If we issue our authorized preferred stock, the rights of the holders of our common stock may be affected and other entities may be discouraged from seeking to acquire control of our Company. Our policy of not paying cash dividends on our common stock could negatively affect the price of our common stock.

Full 10-K form ▸

912607--7/2/2007--MACE_SECURITY_INTERNATIONAL_INC