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Wiki	Wiki Summary
Risk management	Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.\nRisks can come from various sources including uncertainty in international markets, threats from project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause.
Competition	Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Operation Mincemeat	Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Operations research	Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Emergency operations center	An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Bitwise operation	In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Operations director	The role of operations director generally encompasses the oversight of operational aspects of company strategy with responsibilities to ensure operation information is supplied to the chief executive and the board of directors as well as external parties.\n\n\n== Description ==\nThe role of operations director can vary according to the size of a company, and at some companies many even encompass some or all the functions of a chief operating officer.The Institute of Directors of the United Kingdom defines the role as overseeing "all operational aspects of company strategy" and "responsible for the flow of operations information to the chief executive, the board and, where necessary, external parties such as investors or financial institutions".
GeneRally	A general officer is an officer of high rank in the armies, and in some nations' air forces, space forces, and marines or naval infantry.In some usages the term "general officer" refers to a rank above colonel.The term general is used in two ways: as the generic title for all grades of general officer and as a specific rank. \nIt originates in the 16th century, as a shortening of captain general, which rank was taken from Middle French capitaine général.
Accounting standard	Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders.
Generally recognized as safe	Generally recognized as safe (GRAS) is a United States Food and Drug Administration (FDA) designation that a chemical or substance added to food is considered safe by experts under the conditions of its intended use. An ingredient with a GRAS designation is exempted from the usual Federal Food, Drug, and Cosmetic Act (FFDCA) food additive tolerance requirements.
Boys Generally Asian	Boys Generally Asian, also known by the acronym BgA, is an American K-pop parody group that was created by YouTube personality Ryan Higa. The group, which describes itself as "guys who can't sing, dance or really speak Korean", debuted in 2016 with the single, "Dong Saya Dae".
Generally Accepted Auditing Standards	Generally Accepted Auditing Standards, or GAAS are sets of standards against which the quality of audits are performed and may be judged. Several organizations have developed such sets of principles, which vary by territory.
Generally Accepted Accounting Principles (United States)	Generally Accepted Accounting Principles (GAAP or U.S. GAAP, pronounced like "gap") is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the latter differ considerably from GAAP and progress has been slow and uncertain.
Generally Accepted Accounting Practice (UK)	Generally Accepted Accounting Practice in the UK, or UK GAAP, is the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. Company accounts must also be prepared in accordance with applicable company law (for UK companies, the Companies Act 2006; for companies in the Channel Islands and the Isle of Man, companies law applicable to those jurisdictions).
Daylight saving time	Daylight saving time (DST), also known as daylight savings time or daylight time (United States, Canada, and Australia), and summer time (United Kingdom, European Union, and others), is the practice of advancing clocks (typically by one hour) during warmer months so that darkness falls at a later clock time. The typical implementation of DST is to set clocks forward by one hour in the spring ("spring forward"), and to set clocks back by one hour in autumn ("fall back") to return to standard time.
Citation signal	In law, a citation or introductory signal is a set of phrases or words used to clarify the authority (or significance) of a legal citation as it relates to a proposition. It is used in citations to present authorities and indicate how those authorities relate to propositions in statements.
Video game	A video game or computer game is an electronic game that involves interaction with a user interface or input device – such as a joystick, controller, keyboard, or motion sensing device – to generate visual feedback. This feedback mostly commonly is shown on a video display device, such as a TV set, monitor, touchscreen, or virtual reality headset.
Prenuptial agreement	A prenuptial agreement, antenuptial agreement, or premarital agreement (commonly referred to as a prenup), is a written contract entered into by a couple prior to marriage or a civil union that enables them to select and control many of the legal rights they acquire upon marrying, and what happens when their marriage eventually ends by death or divorce. Couples enter into a written prenuptial agreement to supersede many of the default marital laws that would otherwise apply in the event of divorce, such as the laws that govern the division of property, retirement benefits, savings, and the right to seek alimony (spousal support) with agreed-upon terms that provide certainty and clarify their marital rights.
Paris Agreement	The Paris Agreement (French: Accord de Paris), often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change, adopted in 2015. It covers climate change mitigation, adaptation, and finance.
TRIPS Agreement	The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations.
Minsk agreements	The Minsk agreements were a series of international agreements which sought to end the war in the Donbas region of Ukraine. The first, known as the Minsk Protocol, was drafted in 2014 by the Trilateral Contact Group on Ukraine, consisting of Ukraine, Russia, and the Organization for Security and Co-operation in Europe (OSCE), with mediation by the leaders of France and Germany in the so-called Normandy Format.
Haavara Agreement	The Haavara Agreement (Hebrew: הֶסְכֵּם הַעֲבָרָה‎ Translit.: heskem haavara Translated: "transfer agreement") was an agreement between Nazi Germany and Zionist German Jews signed on 25 August 1933. The agreement was finalized after three months of talks by the Zionist Federation of Germany, the Anglo-Palestine Bank (under the directive of the Jewish Agency) and the economic authorities of Nazi Germany.
Non-disclosure agreement	A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), secrecy agreement (SA), or non-disparagement agreement, is a legal contract or part of a contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to. Doctor–patient confidentiality (physician–patient privilege), attorney–client privilege, priest–penitent privilege and bank–client confidentiality agreements are examples of NDAs, which are often not enshrined in a written contract between the parties.
Simla Agreement	The Simla Agreement, also spelled Shimla Agreement, was a peace treaty signed between India and Pakistan on 2 July 1972 in Shimla, the capital city of the Indian state of Himachal Pradesh. It followed the Indo-Pakistani War of 1971, which began after India intervened in East Pakistan as an ally of Bengali rebels who were fighting against Pakistani state forces in the Bangladesh Liberation War.
Stock market	A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms. Investment is usually made with an investment strategy in mind.
Management	Management (or managing) is the administration of an organization, whether it is a business, a non-profit organization, or a government body. It is the art and science of managing resources of the business.
Agile management	Agile management is the application of the principles of Agile software development to various management processes, particularly project management. Following the appearance of the Manifesto for Agile Software Development in 2001, Agile techniques started to spread into other areas of activity.
Project management	Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process.
Women Management	Women Management is a modeling agency based in New York. Founded by Paul Rowland in 1988, Women also has two sister agencies, Supreme Management and Women 360 Management, which is also part of the Women International Agency Chain.
Emergency management	Emergency management, also called emergency response or disaster management, is the organization and management of the resources and responsibilities for dealing with all humanitarian aspects of emergencies (prevention, preparedness, response, mitigation, and recovery). The aim is to prevent and reduce the harmful effects of all hazards, including disasters.
Common stock	Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States.
Common stock dividend	A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of either cash or stock.
Preferred stock	Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior (i.e., higher ranking) to common stock but subordinate to bonds in terms of claim (or rights to their share of the assets of the company, given that such assets are payable to the returnee stock bond) and may have priority over common stock (ordinary shares) in the payment of dividends and upon liquidation.
Matthiola incana	Matthiola incana is a species of flowering plant in the cabbage family Brassicaceae. Common names include Brompton stock, common stock, hoary stock, ten-week stock, and gilly-flower.
New York Stock Exchange	The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018.
Class B share	In finance, a Class B share or Class C share is a designation for a share class of a common or preferred stock that typically has strengthened voting rights or other benefits compared to a Class A share that may have been created. The equity structure, or how many types of shares are offered, is determined by the corporate charter.B share can also refer to various terms relating to stock classes:\n\nB share (mainland China), a class of stock on the Shanghai and Shenzhen stock exchanges\nB share (NYSE), a class of stock on the New York Stock ExchangeMost of the time, Class B shares may have lower repayment priorities in the event a company declares bankruptcy.
Convertible bond	In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features.

Risk Factors
You should consider carefully these risk factors together with all of the other information included or incorporated by reference in this report before you decide your actions with respect to our securities
The following risk factors could adversely affect our revenue, expenses, net income, cash flow, ability to service our indebtedness, and ability to make distributions to our shareholders, any of which could adversely affect the trading price of our publicly traded securities
5 ______________________________________________________________________ [32]Table of Contents Intense competition in our industry could prevent us from increasing or sustaining our revenues and prevent us from achieving or sustaining profitability
The greeting card, party supply and special occasion retailing business is highly competitive
Increased competition by existing or future competitors may reduce our sales and cause us to incur another loss
As a result of competition from other specialty party supplies and paper goods retailers, we may need to incur additional marketing and promotional expenses to achieve sales growth in our existing stores
Our stores compete with a variety of smaller and larger retailers, including: Ÿ specialty party supplies and paper goods retailers, including other party superstores; Ÿ card shops and designated departments in mass merchandisers; Ÿ warehouse/merchandise clubs and discount general merchandise chains; Ÿ toy stores; Ÿ drug stores; Ÿ supermarkets; Ÿ dollar stores; Ÿ department stores of local, regional and national chains; and Ÿ internet retailers
Many of our competitors have substantially greater financial and personnel resources than we do
We may encounter additional competition from new entrants in the future in our existing markets
Our competitors may be able to respond more quickly or adjust prices more effectively to take advantage of new opportunities or customer requirements
Increased competition could result in pricing pressures, reduced sales, reduced margins or failure to achieve or maintain widespread market acceptance, any of which could prevent us from increasing or sustaining our revenues and achieving or sustaining profitability
Customers’ requirements are likely to evolve, and we will not retain customers or attract new customers if we do not anticipate and meet specific customer requirements and changes in merchandising trends
Our core operations rely on a stable customer base
Failure to maintain existing customers and obtain new customers may adversely affect our market position
Our success depends, in part, on our ability to anticipate and respond to changing merchandise trends and consumer demands in a timely manner
Accordingly, any delay or failure by us in identifying and responding to emerging trends could adversely affect consumer acceptance of the merchandise in our stores
If we are required to sell a significant amount of unsold inventory at below average mark-ups over our cost or below cost, such action could have an adverse effect on our financial condition and results of operations
We make merchandising decisions well in advance of the seasons during which we will sell the merchandise
As a result, if we fail to identify and respond quickly to emerging trends, consumer acceptance of the merchandise in our stores could diminish and we may experience a reduction in revenues
We sell certain licensed products that are in great demand for short time periods, making it difficult to project our inventory needs for these products
Significantly greater or less-than-projected product demand could lead to one or more of the following: Ÿ lost sales due to insufficient inventory; Ÿ higher carrying costs associated with slower turning inventory; and Ÿ reduced or eliminated margins due to mark downs on excess inventory
6 ______________________________________________________________________ [33]Table of Contents If consumer demand for single-use, disposable party goods were to diminish, the party supplies and paper goods industry and our revenues would be negatively affected
For example, if cost increases in raw materials such as paper, plastic, cardboard or petroleum were to cause our prices to increase significantly, consumers might decide to forgo the convenience associated with single-use, disposable products
Similarly, changes in consumer preferences away from disposable products and in favor of reusable products for environmental or other reasons could reduce the demand for our products
A downturn in the economy may affect consumer purchases of discretionary items, which could reduce our sales
In general, our sales represent discretionary spending by our customers
Discretionary spending is affected by many factors, including, among others, general business conditions, interest rates, the availability of consumer credit, taxation and consumer confidence in future economic conditions
Our customers’ purchases of discretionary items, including our products, could decline during periods when disposable income is lower or during periods of actual or perceived unfavorable economic conditions
If this occurs, our revenues and profitability will decline
In addition, our sales could be adversely affected by a continued downturn in the economic conditions of the markets in which we operate
Our business depends on continued good relations with our suppliers
Our failure to maintain good relationships with our principal suppliers or the loss of our principal suppliers would hurt our business
We purchase our inventory from more than 300 vendors world-wide, with the largest supplier representing approximately 14prca and the ten largest suppliers representing approximately 52prca of our aggregate purchases in Fiscal 2005
Many of our principal suppliers currently provide us with incentives like volume purchasing allowances and trade discounts
If our suppliers were to reduce or discontinue these incentives, prices from our suppliers would increase and our profitability would be reduced
As is customary in our industry, we generally do not have long-term contracts with any suppliers and any supplier could discontinue selling to us at any time
If a vendor becomes unable or unwilling to ship goods or provide favorable terms, this then could adversely affect our ability to compete and our financial performance
Our arrangements with overseas suppliers are subject to risks of doing business abroad, such as import duties, trade restrictions, work stoppages, political instability and other factors which could have an adverse effect on our business
On February 5, 2005, we entered into a definitive agreement with the Premier Greetings division of Paramount Cards Inc
Under the terms of the agreement, Paramount supplies substantially all of our greeting cards
As a result of this agreement, we have become more dependent on one supplier for providing greeting cards to our stores
The failure of Paramount to adequately satisfy the needs of our customers or to meet our greeting card volume requirements could have an adverse effect on our business
On January 26, 2006, we entered into a definitive agreement with Amscan Holdings, Inc
The agreement makes Amscan the Company’s exclusive supplier of solid color paper tableware products
Amscan has previously supplied party merchandise to the company prior to the date of this agreement
In conjunction with the agreement, Amscan ships merchandise to the Naperville distribution center, and the ownership of merchandise transfers to us only after the goods are shipped out of the distribution center
The failure of Amscan to provide product that adequately satisfies the needs of our customers or to meet our volume requirements could have an adverse effect on our business
We face new competitive threats as a result of Amscan’s acquisition of Party City Corporation
In December 2005, our largest supplier Amscan Holdings, Inc
reported that it had completed the acquisition of Party City Corporation a direct competitor
Amscan’s status as our largest supplier, and the largest supplier in our industry could adversely affect our ability to compete favorably or operate successfully in a changed marketplace
Price pressures from such new sources of competition, particularly in the event of a strain in our relationship with Amscan, could erode our margins and cause our financial results to suffer
7 ______________________________________________________________________ [34]Table of Contents We may need to raise additional capital to fund our operations and support our long-term growth strategy
Our ability to make scheduled payments of principal of, or to pay the interest on, or to refinance, indebtedness or to fund planned capital expenditures, will depend upon our future performance, which, in turn, is subject to general economic, financial, competitive and other factors that are beyond our control
There can be no assurance that our business will continue to generate sufficient cash flow from operations in the future to service our debt and make necessary capital expenditures after satisfying certain liabilities arising in the ordinary course of business
If unable to do so, we may be required to refinance all or a portion of our existing debt, sell assets or obtain additional financing
There can be no assurance that any refinancing would be available or available on favorable terms or that any sales of assets or additional financing could be obtained or obtained on favorable terms
If adequate funds are not available or are not available on acceptable terms, we may be unable to develop or enhance our products and services, implement our long-term growth strategy, take advantage of future opportunities or respond in a timely manner to competitive pressures
We are substantially leveraged and our financing facility contains covenants that could adversely affect our business
Our indebtedness restricts our ability to obtain additional financing in the future, and because we may be more leveraged than some of our competitors, may place us at a competitive disadvantage
These restrictions could adversely affect our ability to finance future operations, potential acquisitions or capital needs or to engage in other business activities that may be in our best interest
Also, our financing facility contains covenants that impose operating and financial restrictions on us and require us to maintain a minimum borrowing base availability or to meet certain financial tests
Our ability to continue to comply with these covenants may be affected by events beyond our control
The breach of any of these covenants would result in a default under our indebtedness, in which case our lender could elect to declare all amounts borrowed thereunder, together with accrued interest, to be due and payable, foreclosure on the assets servicing the debt or cease to provide additional revolving loans or letters of credit which would have a material adverse effect on our business
The seasonal nature of our business could adversely impact our operations
Our business is highly seasonal, with operating results varying from quarter to quarter
We have historically experienced higher sales during the second and fourth quarters primarily due to increased demand by customers for our products attributable to special occasions and holiday seasons during these periods
Lower sales than expected by us during these periods, a lack of availability of product, or a general economic downturn in sales could have a material adverse effect on our business, financial condition and results of operations for the full year
In addition, the timing of new store openings, related pre-opening expenses and the amount of revenue contributed by new and existing stores may cause our quarterly results of operations to fluctuate
We may not be able to profitably grow our business
In order to profitably grow our business, we need to increase sales in our existing markets and open additional stores
Opening additional stores in existing markets could reduce sales from our stores located in or near those markets and stores opened in new markets may not be profitable
In addition, the opening of new stores could put additional strain on our existing infrastructure and may limit our ability to effectively leverage the costs of the new stores
We may not be able to effectively execute our long-term growth strategy
Our long-term growth strategy requires effective planning and management
Also, the competitive and merchandising challenges we face in new geographic markets may be different from the challenges we face in our existing geographic markets
We may have to adapt to regional tastes and customs and compete against established and 8 ______________________________________________________________________ [35]Table of Contents familiar local businesses with innovative or unique techniques for marketing party supplies and paper goods
Entering new markets may also place significant demands on our management, financial controls, operations and information systems
This may cause us to incur higher costs relating to marketing and operations
Expansion will require an increase in our personnel, particularly store managers and sales associates, to operate our new stores
If we decide to change the location of the headquarters and distribution center when the lease expires at February 2008, we may experience distractions that could negatively impact operations
The lease for the Naperville, Illinois distribution center and headquarters expires February 2008
While we do have renewal options for an additional five years, if we decide to relocate the facilities we could experience significant distractions from the management of the business as well as interruptions that could severely impair operations
Due to relocating the distribution center, we could experience some interruption or slow-down in our ability to replenish our stores
As well, the relocation of our management information systems could result in downtime that would impede our operations and potentially cause problems or delays with our financial reporting
Relocating the headquarters might also result in the loss of employees who are unwilling to travel the extra distance which could stress the existing management team
If we do not comply with the numerous laws and regulations that govern our business, our business could be harmed
Each of our stores must comply with regulations adopted by Federal agencies and with licensing and other regulations enforced by state and local health, sanitation, safety, fire and other departments
More stringent and varied requirements of local governmental bodies with respect to zoning, land use and environmental factors, and difficulties or failures in obtaining the required licenses or approvals, can delay and sometimes prevent the opening of a new store
In addition, we comply with the Fair Labor Standards Act and various state laws governing various matters such as minimum wage, overtime and other working conditions
We also comply with the provisions of the Americans with Disabilities Act of 1990, as amended, which requires generally that employers provide reasonable accommodation for employees with disabilities and that stores be accessible to customers with disabilities
However, future violations of such laws, the enactment of stricter laws or regulations or the implementation of more aggressive enforcement policies could adversely affect our operations or financial condition
If we are unable to hire additional qualified personnel or retain existing personnel, we may not be able to operate our business successfully
Our success depends upon the efforts of our senior management and other key personnel
The loss of the services of any member of our management team or a key employee, or a failure to timely retain a replacement officer could have a material adverse effect on us
Our future success will also depend in part on attracting and retaining quality employees
Many of our employees are in entry level or part-time positions with historically high rates of turnover
Our ability to meet our labor needs while controlling costs is subject to external factors, such as unemployment levels, minimum wage legislation and changing demographics
There can be no assurance that we will be successful in retaining our existing key personnel or in attracting and retaining additional employees we may require
Any difficulties in obtaining, retaining and training qualified personnel could have a material adverse effect on us
Higher administrative expenses could adversely affect our business and operations
Higher selling, general and administrative expenses occasioned by the potential need for additional advertising, marketing, administrative or management information systems expenditures could negatively impact our business and operations
9 ______________________________________________________________________ [36]Table of Contents Interruption or obsolescence of our management information systems could have a negative effect on our competitive ability and our business generally
We believe that our management information systems are an important factor in supporting our business and enhancing our competitive position in the industry
Over the past three years, we have invested significant resources in systems and infrastructure to support our business and make it more efficient
We use a management information and control system, which is based on the JDA Merchandise Management System software package (“JDA”) and supports the complete range of retail cycle functions in the areas of finance, merchandising and distribution
All stores are linked to our headquarters through personal computers, which interface with an IBM AS/400 and provide auto-replenishment of inventory and the ability to enter payroll information and send and receive electronic mail
These personal computers are also tied into our point-of-sale system (“POS system”)
The POS system provides sales information to our stores and central office and is used to enhance merchandise planning and buying programs
In the second half of Fiscal 2005, we integrated JDA’s Portfolio Advanced Replenishment by E3^® suite and JDA’s Seasonal Profiling by Intellect^™ into our existing JDA Merchandise Management System installation
This highly regarded retail system provides sophisticated demand forecasting and functionalities such as seasonal profiling, exception management and promotional sales planning that will enable us to optimize store replenishment while reducing overall inventory
Any obsolescence or continuing interruption in the functioning of these systems could have a negative effect on our ability to compete effectively in the industry and on our business
Our warrants and stock options may have significant dilutive effects on holders of Common Stock generally
Pursuant to our bankruptcy plan of reorganization, we issued four series of warrants to holders of our old pre-bankruptcy common stock to purchase up to approximately 10prca (subject to certain dilution events) of the Common Stock issued under the bankruptcy plan (assuming exercise of all such warrants)
These four series of warrants are exercisable for terms ranging from four to eight years from the issuance date
We currently have stock option plans pursuant to which we have the authority to issue options to our employees and directors for up to 1cmam133cmam334 shares of our Common Stock
As of January 28, 2006, there were options issued to purchase 839cmam517 shares of our Common Stock outstanding with a weighted average exercise price of dlra6dtta22 per share
The issuance of shares of Common Stock pursuant to the exercise of the four series of warrants, the exercise of stock options, and the anti-dilution rights protection of the warrants issued to management could significantly dilute the holders of Common Stock currently issued and outstanding
Certain provisions of our charter may prevent or delay a change of control of the Company
Our certificate of incorporation provides for a classified Board of Directors
Any effort to obtain control of our Board of Directors by causing the election of a majority of the Board of Directors may require more time than would be required without a staggered election structure
Our certificate of incorporation also imposes restrictions on the direct or indirect transferability of our Common Stock, subject to certain exceptions, such that no person or certain groups of persons (x) may acquire or accumulate five percent (5prca) or more (as determined under tax law principles governing the application of Section 382 of the Internal Revenue Code of 1986, as amended) of the Common Stock or (y) who, upon implementation of the Plan, owns 5prca or more of the Common Stock, may acquire additional Common Stock
These provisions would have the effect of preventing a change of control for the duration of such restrictions
During Fiscal 2005, permission to exceed the 5prca threshold was requested by and granted to three independent parties
Adverse publicity could adversely affect our business
We generally operate in medium-sized towns and suburban neighborhoods
Adverse publicity or news coverage relating to us could negatively impact our efforts to establish and promote name recognition and a positive image
10 ______________________________________________________________________ [37]Table of Contents Our stock price may be volatile and could decline
Our Common Stock has had limited trading activity
We cannot predict the extent to which investor interest in our stock will lead to the development of a more active trading market, how liquid that market might become or whether it will be sustained
The trading price of our Common Stock could be subject to wide fluctuations due to the factors discussed in this risk factors section and elsewhere in this document, including: Ÿ our operating results failing to meet the expectations of our investors; Ÿ material announcements by us or our competitors; Ÿ governmental regulatory action; or Ÿ adverse changes in general market conditions or economic trends
In addition, the stock markets in general have experienced extreme price and volume fluctuations
These broad market and industry factors may decrease the market price of our Common Stock, regardless of our actual operating performance
We do not anticipate paying dividends
We have not paid dividends on our Common Stock and we do not anticipate paying dividends in the foreseeable future
We intend to retain future earnings, if any, to finance the expansion of our operations and for general corporate purposes, including future acquisitions
In addition, our financing facility prohibits us from paying dividends on our capital stock