949371--4/2/2009--I2_TELECOM_INTERNATIONAL

related topics

{product, market, service}

{property, intellectual, protect}

{system, service, information}

{stock, price, operating}

{control, financial, internal}

{acquisition, growth, future}

{personnel, key, retain}

{operation, international, foreign}

{regulation, government, change}

{cost, regulation, environmental}

{product, liability, claim}

{competitive, industry, competition}

We have a history of losses and negative cash flows from operations and we may not be profitable in the future. The price of our Common Stock has been volatile in the past and may continue to be volatile. Volatility in our common share price may subject us to securities litigation. The Company may not be able to successfully manage its growth The Company may be unable to fund future growth Our performance could be adversely affected if we are unable to attract and retain qualified personnel in the fields of engineering, marketing and finance. The general condition of the telecommunications market will affect our business. Continued pricing declines may result in a decline in our operating results. The VoIP telephony market is subject to rapid technological change. Newer technology may render our technology obsolete which would have a material, adverse impact on our business and results of operations. The continued growth of the Internet as a medium for telephone services is uncertain. If this growth does not continue, our business and financial condition could be materially adversely affected. Our business faces security risks. Our failure to adequately address these risks could have an adverse effect on our business and reputation. The Companys ability to do business depends, in part, on the Companys ability to license certain technology from third parties. Products and services like the ones we offer change rapidly, therefore, we must continually improve them. However, our need to invest in research and development may prevent us from ever being profitable. We sell a service that allows our customers to make telephone calls over the Internet. Intellectual property infringement claims brought against us, even without merit, could require us to enter into costly licenses or deprive us of the technology we need. We have developed our underlying software and we try to protect it from being used by others in our industry. Failure to protect our intellectual property rights could have a material adverse effect on our business. If our products contain defects, then our sales would be likely to suffer, and we may even be exposed to legal claims. Defects in our products could have a material adverse impact on our business and operating results. Sales to customers based outside the United States have recently accounted for a significant portion of the Companys revenues, which exposes the Company to risks inherent in international operations Doing business over the Internet may become subject to governmental regulation. If these regulations substantially increase the cost of doing business, they could have a material adverse effect on our business, results of operations and financial condition. We depend on third-party vendors for key Internet operations including broadband connectivity, termination capability and different operating systems. The loss of any of our vendors could have a material adverse effect on our business, results of operations and financial condition. We may not be able to successfully compete with current or future competitors. We have a short operating history. This will make it difficult for you to evaluate our business and prospects. We may not be able to comply with the FCCs requirements to provide 911 service to our customers. Our inability to comply with these requirements could have an adverse effect on our business and results of operations.

Full 10-K form ▸

949371--4/2/2009--I2_TELECOM_INTERNATIONAL_INC