Limited Working Capital
As a development stage company, the Company would have only limited working capital. Even if the company successfully completes the Offering and concludes the purchase of the necessary computers, software, communications equipment and other equipment required to implement the business, it is possible that it will require additional funds to enable it to implement its advertising and marketing progress and to expand into other available market segments. See "Financial Statements".
Highly Speculative The Company is in highly competitive and speculative areas of business, each of which involves a substantial degree of risk. Economic and political conditions and competition in the industry will affect the success of the Company. Law enforcement and taxing jurisdictions are subject to political, fiscal and budgetary constraints and purchases of the Company's products may be delayed substantially due to political and budgetary processes. The nature of the public sector market and the government procurement process are expected to result in an irregular and unpredictable revenue stream for the Company. The Company's performance in any one quarter is not necessarily indicative of sales trends or future performance. See "Business".
Reliance on Management and Key Personnel The success of the Company depends significantly upon the efforts of the President, John Schmitz. The loss of services of Mr. Schmitz would likely have a materially adverse affect on the business and the future prospects of the Company. See "Management". PRWT's[sic] performance is substantially dependent on the performance of its executive officers and other key employees. PRWT[sic] is dependent on its ability to attract, train, retain and motivate high quality personnel, especially its management team. The loss of the services of any of its executive officers or key employees could have a material adverse affect on its business, results of operations or financial condition. PRWT's[sic] future success also depends on its continuing ability to attract, train, retain and motivate other highly qualified technical and managerial personnel. Competition for such personnel is intense, and there can be no assurance that PRWT[sic] will be able to attract, train, retain or motivate other highly qualified technical and managerial personnel in the future.
Technical Change and Product Obsolescence The ability of the Company to compete successfully in its various markets, which generally are characterized by rapidly changing technology, will depend in part upon its ability to continually advance its technology and to develop new applications and designs for its products. See "Business".
Reliance Upon Sub-Contractors Because the Company's product applications are components of larger systems applications, the Company frequently must rely upon sub-contractors to supply hardware and software in the complete system installations. If the sub-contractor's ability to implement the installation or their component is impaired, the Company's ability to successfully complete the project would be delayed or impaired.
Immediate Substantial Dilution Purchasers of the Common Stock will incur immediate substantial dilution in the net tangible book value of the Common Stock acquired by them upon completion of this offering. Dilution is the reduction in the value of the purchaser's investment measured by the difference between the purchase price and the net tangible book value per share after the purchase occurs.
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