Our capital requirements, particularly as they relate to product research
and development, have been and will continue to be significant. Our future cash
requirements and the adequacy of available funds will depend on many factors,
including the pace at which we are able to launch our products, whether or not a
market develops for our products and, if a market develops, the pace at which it
develops, and the pace at which the technology involved in making our products
changes.
To date, we have funded our operations through loans in the amount of
$1,650,000 from a bank and loans in the amount of $1,675,425 from unrelated
third parties, directors and a shareholder. We have applied for grants from
various government agencies that, if approved, will provide funding for the
development of new products and for the enhancement of our current products. We
are also negotiating with various government agencies and private companies for
the sale of our products. We cannot guarantee that we will be awarded any grant
or that a market for our products will develop. During the next 12 months, if we
fail to earn revenues in an amount sufficient to fund our operations, we intend
to raise capital through an offering of our securities or from additional loans.
We have no commitments for financing for our future needs and we cannot
guarantee that financing will be available to us, on acceptable terms or at all.
If we do not earn revenues sufficient to support our business and we fail to
obtain other financing, either through an offering of our securities or by
obtaining additional loans, we may be unable to maintain our operations. |
