Friday, October 26, 2007 1:49:08 PM
On August 9, 2007, Speedemissions, Inc. (the “Company”) entered into an agreement with one of the nation’s largest broadline retailers, which provides for the Company to locate a testing site and conduct its business at up to 13 retail locations in the Dallas – Ft. Worth, Texas metropolitan area. Pursuant to the arrangement, the Company will be responsible for providing all necessary fixtures and testing equipment, staffing and facilities and conducting the operations of the testing centers as each of the locations opens. If operations are commenced at all of the potential locations, the total number of testing sites operated by the Company would be 48, representing a 38% increase over the Company’s current 35 testing sites. The Company expects that its net cash flow and profitability may be adversely impacted as it invests in the infrastructure and incurs the startup expenses necessary to open those new locations.
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