Additional Funding Requirements
The Company will require additional financing to implement its business plan. The Company may raise additional funds
through gap financing, debt financing, and/or subsequent equity financing. The Company may also borrow funds from
a financial institution(s) using the assets of the Company as security for said loan(s). The Company may also obtain
additional financing through certain government subsidies or tax incentives available in certain geographic areas, if
available, at the Company’s discretion. Failure to obtain such additional capital on terms acceptable to the Company
could restrict its ability to implement its growth plans. Further, a shortage of funds may prevent or delay the Company
from getting its products to the marketplace, achieving profitability, or enabling the Company to pay distributions to its
shareholders. There is no assurance that the Company will have adequate capital to conduct its business or satisfy its
financial obligations.
The ability of the Company to arrange financing in the future will depend in part upon the prevailing capital market
conditions as well as the business performance of the Company. There can be no assurance that the Company will be
successful in its efforts to arrange additional financing, if needed, on terms satisfactory to the Company or at all. If
additional financing is raised by the issuance of shares from the treasury of the Company, control of the Company may
change, and shareholders may suffer additional dilution. There can be no assurance that the Company will generate
cash flow from operations necessary to support the continuing operations of the Company.
Limited Operating History
The Company has incurred losses since inception and is expected to continue to incur losses. As such, the Company
will be subject to all the business risks and uncertainties associated with any new business enterprise, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenues.
The Company’s ability to reach and then sustain profitability depends on several factors, including the growth rate of
the developmental optics industry, the continued market acceptance of the Technology and the competitiveness of the Company. There is no assurance that the Company will be successful in achieving a return on shareholders’ investment and the likelihood of its success must be considered in light of its early stage of operations. Lack of Operating Cash Flow The Company currently has no source of operating cash flow, which is expected to continue for the near future. The Company’s failure to achieve profitability and positive operating cash flows could have a material adverse effect on its financial condition and results of operations.