Right from the CEO.
The anticipated benefit of any of our acquisitions or investments may never materialize. Future investments, acquisitions or dispositions could result in potentially dilutive issuances of our equity securities, the incurrence of debt, contingent liabilities or amortization expenses, or write-offs of goodwill, any of which could harm our financial condition. Future investments and acquisitions may require us to obtain additional equity or debt financing, which may not be available on favorable terms, or at all.
Our substantial indebtedness and our current default status and any restrictive debt covenants could limit our financing options and liquidity position and may limit our ability to grow our business.
Our indebtedness could have important consequences to the holders of our common stock, such as:
•we may not be able to obtain additional financing to fund working capital, operating losses, capital expenditures or acquisitions on terms acceptable to us or at all;•we may be unable to refinance our indebtedness on terms acceptable to us or at all;•if substantial indebtedness continues it could make us more vulnerable to economic downturns and limit our ability to withstand competitive pressures; and•cash flows from operations are currently negative and may continue to be so, and our remaining cash, if any, may be insufficient to operate our business.•paying dividends to our stockholders;•incurring, or cause certain of our subsidiaries to incur, additional indebtedness;•permitting liens on or conduct sales of any assets pledged as collateral;•selling all or substantially all of our assets or consolidate or merge with or into other companies;•repaying existing indebtedness; and•engaging in other entities.
