This excerpt taken from the XIDE 10-K filed Jun 4, 2009.
The Company is subject to regulation of its international operations that could adversely affect its business and results of operations.
Due to the Companys global operations, it is subject to many laws governing international relations, including those that prohibit improper payments to government officials and restrict where it can do business, what information or products it can supply to certain countries and what information it can provide to a non-U.S. government, including but not limited to the Foreign Corrupt Practices Act and the U.S. Export Administration Act. Violations of these laws, which are complex and often times difficult to interpret and apply, may result in severe criminal penalties or sanctions that could have a material adverse effect on the Companys business, financial condition and results of operations.