ER Urgent Care Holdings Inc: SB-2, Sub-Doc 1, Page 8
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Table of Contents
RISKS RELATING TO OUR BUSINESS
The Company has a history of losses. There is no assurance that we will be profitable in the future:
As shown in the Company’s financial statements accompanying its annual report, the Company incurred net losses of $565,809 and $521,975 during the years ended December 31, 2006 and 2005 respectively and net losses during the first six months of 2007 of $10,372,566. The Company does not expect to achieve profitability for the next several quarters, and there can be no assurance that it will be profitable thereafter, or that the Company will sustain any such profitability if achieved.
The markets in which we operate are highly competitive, and many of our competitors have significantly greater resources than we do:
Ambulatory urgent care medicine is one of the largest growing practices in the United States. In fact, there are more AUC practices opening than managed care plans. Many of the Company’s current and potential competitors may have longer operating histories and may have significantly greater financial, and other resources, as well as greater name recognition than the Company. As a result, they may be able to devote greater resources to the development marketing and support of their medical facilities than the Company. There can be no assurance that the Company will be able to compete successfully against current or future competitors or that competitive pressures faced by the Company will not materially adversely affect its business, operating results or financial condition.
The loss of our senior management and failure to attract and retain qualified personnel in a competitive labor market could limit our ability to execute our growth strategy, resulting in a slower rate of growth:
We depend on the continued service of our senior management. Due to the nature of our business, we may have difficulty locating and hiring qualified personnel and retaining such personnel once hired. The loss of the services of any of our key personnel, or our failure to attract and retain other qualified and experienced personnel on acceptable terms, could limit our ability to execute our growth strategy resulting in a slower rate of growth.
Our failure to attract and retain Physicians and Nurse Practitioners in a competitive labor market could limit our ability to execute our growth strategy, resulting in a slower rate of growth:
The Company’s business depends on its ability to continue to recruit and retain a sufficient number of qualified licensed doctors and nurses. Although the Company believes it has an effective recruitment process, there is no assurance that the Company will be able to secure arrangements with sufficient numbers of licensed doctors and nurses or retain the services of such practitioners. The Company recruits its personnel from a variety of employment agencies and services. If the Company experiences delays or shortages in obtaining access to qualified physicians and nurses, the Company would be unable to expand its clinics, resulting in reduced revenues.
We face the risk of professional liability claims which may exceed the limits of insurance coverage:
The Company may become involved in malpractice claims with the attendant risk of damage awards. The Company currently maintains malpractice insurance in the aggregate amount of $1,000,000 and $3,000,000 on a per claim basis. There can be no assurance that a future claim or claims will not exceed the limits of available insurance coverage or that such coverage will continue to be available at commercially reasonable rates, if at all. In the event of a successful claim against the Company that is uninsured in whole or in part, the Company’s business and financial condition could be materially adversely affected.
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