930095--3/15/2006--EDEN_BIOSCIENCE

related topics

{product, candidate, development}

{control, financial, internal}

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{product, liability, claim}

{acquisition, growth, future}

{operation, international, foreign}

{personnel, key, retain}

{stock, price, operating}

{stock, price, share}

{capital, credit, financial}

Factors That May Affect Our Business, Future Operating Results and Financial Condition We have a history of losses since inception, we expect to continue to incur losses and we may not achieve or sustain profitability. We may have to reduce or cease operations if we are unable to meet our funding requirements. Our common stock listing was transferred from The Nasdaq National Market to The Nasdaq Capital Market (formerly known as The Nasdaq SmallCap Market); we currently are not in compliance with The Nasdaq Capital Market minimum bid requirement and failure to regain and maintain compliance with this and other continued listing standards could result in delisting and adversely affect our market price and liquidity. We currently depend on products that are based on the same new technology, and our development and commercialization of those products may not be successful. We have experienced limited grower usage of Messenger and Messenger STS, and independent distributors hold significant inventories of Messenger STS. Inability to develop adequate sales and marketing capabilities could prevent us from successfully commercializing our current products and other products we may develop. We may be unable to establish or maintain successful relationships with independent distributors and retailers, which could adversely affect our sales. If our ongoing or future field trials are unsuccessful, we may be unable to achieve market acceptance or obtain regulatory approval of our current products or any other products we may develop. We are largely in the development stage and are subject to the risks of a new enterprise and the commercialization of a new technology. International expansion will subject us to risks associated with international operations, which could adversely affect both our domestic and international operations. The high level of competition in our market may result in price reductions, reduced margins or the inability of our products to achieve market acceptance. Age and actual storage conditions of our products may cause them to degrade, which could adversely affect market acceptance of our products or our results of operations. The inventory of Messenger STS held by us and by distributors is aging and may not meet our quality standards, which could adversely affect market acceptance of our products and our results of operations. Inability to obtain regulatory approvals, or to comply with ongoing and changing regulatory requirements, could delay or prevent sales of our current products or any other products we may develop. Our product development efforts, which are based on an innovative technology that is commercially unproven, may not be successful. Our operating results are likely to fluctuate, resulting in an unpredictable level of sales and earnings and a decrease in our stock price. Inability to protect our patents and proprietary rights in the United States and foreign countries could limit our ability to compete effectively since our competitors may take advantage of our patents or proprietary rights. Other companies may claim that we infringe their intellectual property or proprietary rights, which could cause us to incur significant expenses or be prevented from selling our current products or any other products we may develop in the future. If we do not adequately distinguish our products from genetically modified plants and products, public concerns over those products could negatively impact market acceptance of our products. We may be exposed to product liability claims, which could adversely affect our operations. Rapid changes in technology could render our current products or any other products we may develop unmarketable or obsolete. Inability to comply with regulations applicable to our facilities and procedures could delay, limit or prevent our research and development or manufacturing activities. Inability to produce high quality products could impair our business. If third-party manufacturers fail to perform adequately, we could be unable to meet demand and our revenues could be adversely affected. Inability to address strain on our resources caused by growth could result in ineffective management of our business. Inability to retain our key employees or other skilled managerial or technical personnel could impair our ability to maintain or expand our business.

Full 10-K form ▸

930095--3/15/2006--EDEN_BIOSCIENCE_CORP