No Assurance That Shares Will Be Purchased. This Offering is being made on a "best efforts basis," and there is no minimum number of Shares that must be sold in this Offering. Therefore, the Company can give no assurance that all or any of the Shares will be sold. See "Term[s] of the Offering."
Absence of Public Market; Determination of Offering Price. There is no assurance that a public market will exist for the Company's common Stock or if one exists that it will be sustained. Also, the offering price for the shares offered were determined arbitrarily by the Company and does not bear any relationship to the Company's asset value, net worth or other generally accepted criteria of value.
No Dividends. The Company has never paid any cash dividends on its Common Stock and does not anticipate paying cash dividends in the foreseeable future. The payment of dividends by the Company will depend on its earnings financial condition and other business and economic factors affecting the Company at that time as the Board of Directors may consider relevant. The Company currently intends to retain any earnings to provide for the development and growth of the Company. See "Description of Securities-Dividend Policy."
Potential Revenue and Stock Price Volatility. The Company's future operating results may vary substantially from quarter to quarter. Revenues in any quarter are substantially dependent on a receipt of orders and installations in that quarter and the Company's staffing and operating expenses are based on anticipated revenue levels from these orders. Since a high percentage of this Company's costs are fixed, the loss of any one order or the failure to obtain new orders as existing orders are completed could cause significant fluctuations in the Company's revenue and cash flow from quarter to quarter. Due to these and other factors, including the general economy, stock market conditions or announcements by the Company or its competitors, the market price of the Common Stock may be highly volatile.
Proceeds for General Working Capital. The Company has allocated a portion of the net proceeds of this Offering [for use as] working capital. As to such funds, investors will be relying on the judgement and [discression] of the Company's management without specific information as to the uses that are proposed to be made of such funds. See "Use of Proceeds."
Computer Systems Redesigned for Year 2000. Many existing computer programs use only two digits to identify a year in such program's data field. These programs were designed and developed without consideration of the impact of the change in the century for which four digits will be required to accurately report the date. If not corrected, many computer applications could fail or create erroneous results by or following the year 2000 (the "Year 2000" problem). Many of the computer programs containing such data language problems have been corrected by the companies or governments operating such programs. The Company is not aware of what steps, if any, have been taken by its clients to correct or address such date language problem or if any steps are required of the software sold by the Company, dates are not used thus no problem will arise. Of the hardware the Company has sold, some of the older computers are not in compliance with the Year 2000 problem. Any impact on the Company at this time is unknown. The Company believes that its internal systems including its accounting system are in compliance with the Year 2000 problem.
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