RISK FACTORS
Investing in Interactive Objects Common Stock involves a high degree of risk. You should be prepared to bear a complete loss of your investment.
Since incorporation [in 1995], on an annual basis we have not been profitable. We lost $4,145,514 for the year ended December 31, 1998. We lost $1,685,266 for theyear ended December 31, 1997. We cannot assure you that Interactive Objects will ever operate profitably.
Our ability to make a profit, if at all, is dependent upon:
the success of our Information Appliances division to develop software applications that address the needs of the modern consumer;
our ability to successfully grow and expand our consulting division; and
the successful acquisition of companies with compelling intellectual properties and an established, talented and skilled team of employees.
We believe we can fund our operations without additional capital through the second quarter of 2000.
If we decide to seek additional capital by issuing additional shares of our stock, the number of shares we issue will dilute ourstockholders' holdings. We cannot be certain that we will be able to obtain such capital on acceptable terms, if at all.
We have a concentration of a few customers and limited marketing experience with our consulting services. On March 31, 1999, we acquired Avatar Interactive, an IT consulting and software development company.
INTERACTIVE OBJECTS INC filed this POS AM on 11/24/1999. |
