945828--9/15/2008--AMERITYRE

related topics

{property, intellectual, protect}

{cost, regulation, environmental}

{product, liability, claim}

{customer, product, revenue}

{personnel, key, retain}

{cost, operation, labor}

{product, candidate, development}

{capital, credit, financial}

{product, market, service}

Historically, we have lost money from operations and we have made no provision for any contingency, unexpected expenses or increases in costs that may arise. We may experience delays in resolving unexpected technical issues experienced in completing development of new technology that will increase development costs and postpone anticipated sales and revenues. Because we have limited experience, we may be unable to successfully manage planned growth as we complete the transition from a technology development company to a licensing, manufacturing and marketing company. We are subject to governmental regulations, including environmental and health and safety regulations. The markets in which we sell our products are highly competitive. We attempt to protect the critical elements of our proprietary technology as trade secrets. Because of our reliance on trade secrets, we are unable to prevent third parties from independently developing technologies that are similar or superior to our technology or from successfully reverse engineering or otherwise replicating our technology. Our business depends on the protection of our patents and other intellectual property and may suffer if we are unable to adequately protect such intellectual property. Third parties may invalidate our patents We may be liable for infringing the intellectual property rights of others. Tires for highway use must meet applicable safety standards prior to marketing which could delay anticipated revenues and increase expenses, while off-the-road tires, although not subject to specific safety standards, are subject to discretionary industry performance evaluations based on product application. Because our proposed tire products are derived from new technology, our product liability insurance costs will likely increase and we may be exposed to product liability risks that could adversely affect profitability. Significant increases in the price of chemical raw materials, steel and other raw materials used in our products could increase our production costs and decrease our profit margins or make our products less competitive in the marketplace due to price increases. Our ability to execute our business plan would be harmed if we are unable to retain or attract key personnel.

Full 10-K form ▸

945828--9/15/2008--AMERITYRE_CORP