THQ have filed their 2012 10-K form in which the full extent of their financial difficulties are explored.

, which has been filed with the Securities and Exchange Commission (SEC), details some of the significant risk factors the publisher faces.

Amongst the lengthy list of problems faced by all publishers, such as the negative impact of poor Quality Assurance, and the unpredictability of development time and popularity, several specific issues stand out:

- We have incurred operating losses during the last five fiscal years. We have restructured our business operations in order to adjust our cost structure to better align with our expected future business; however, we may continue to incur losses in the future.

- Our stock currently fails to meet the Nasdaq continued listing requirements. If we fail to regain compliance with continued listing requirements, our stock may be delisted.

- We will depend on a relatively small number of franchises for a significant portion of our net sales.

- If our products fail to gain market acceptance, we may not have sufficient cash flow to pay our expenditures or to develop a continuous stream of new games.

- Failure to appropriately adapt to rapid technological and consumer preference changes or emerging digital channels may adversely impact our market share and our operating results.

- Our inability to maintain, acquire or create new intellectual property that has a high level of consumer recognition or acceptance could adversely impact our net sales, operating results and cash flows.

- Some of our products are based on intellectual property rights licensed from third parties. Failure to retain or renew such licenses, or renewals of such licenses on less advantageous terms, could cause our net sales and operating results to decline.

The latter of these issues in particular stands out – last week it was revealed at the EA E3 Press Conference that rights to the UFC franchise had passed from THQ to their competitor. It was later learnt that this transfer of ownership occurred after THQ failed to hit 2 million sales with UFC Undisputed 3.

THQ has had a very difficult time of late – delays in games and rumours that the company’s days are numbered have all compounded the air of death surrounding the once mighty publisher.

Despite this news, THQ has a promising line-up of games for the coming year, with titles such as South Park: The Stick of Truth proving very popular during it’s appearance at the Microsoft Press Conference. Time will tell whether or not gems like this will be enough to keep the publisher intact.

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