Tucows 2012 Annual Report Download - page 30

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25
• content regulation;
• defamation;
• taxation; and
• the characteristics and quality of products and services.
Laws and regulations directly applicable to online commerce or Internet communications are becoming more
prevalent. Laws and regulations such as those listed above or others, if enacted, could expose us to substantial liability
and increase our costs of compliance and doing business.
Risks Related to our Stock
We do not intend to declare dividends on our common stock in the immediate future.
We anticipate that in the immediate future, our earnings, if any, will be retained for use in the business and that
no cash dividends will be paid on our common stock. While we may decide to declare such dividends in the future,
declaration of dividends on our common stock will depend upon, among other things, future earnings, our operating and
financial condition, our capital requirements, ongoing market conditions and general business conditions.
Our share price is volatile, which may make it difficult for shareholders to sell their shares of common stock when
they want to, at an attractive price.
Our share price has varied recently and the price of our common stock may decrease in the future, regardless of
our operating performance. Investors may be unable to resell their common stock following periods of volatility because
of the market’s adverse reaction to this volatility.
The following factors may contribute to this volatility:
• actual or anticipated variations in our quarterly operating results;
• interruptions in our services;
• seasonality of the markets and businesses of our customers;
• announcements of new technologies or new services by our company or our competitors;
• our ability to accurately select appropriate business models and strategies;
• the operating and stock price performance of other companies that investors may view as comparable to us;
• news relating to our industry as a whole; and
• news relating to trends in our markets.
The stock market in general, and the market for Internet-related companies in particular, including our
company, has experienced volatility. This volatility often has been unrelated to the operating performance of these
companies. These broad market and industry fluctuations may cause the price of our common stock to drop, regardless
of our performance.
Future sales of shares of our common stock by our existing shareholders could cause our share price to fall.
If our shareholders sell substantial amounts of common stock in the public market, the market price of the
common stock could fall. The perception among investors that these sales will occur could also produce this effect.