Following the Market Analysis and evaluation of our Management Team, we have identified what our critical risks are and have developed a pro-active risk reduction strategy to be implemented in our Marketing and Operational Strategy. Our critical risks and steps to reduce our risks are as follows:
| Risk Factor | Insurance Provision | Pro-active Steps To Reduce Risks |
| Intellectual Property | ||
| Patent Issuing |
Extensive Patent Search Unique Design Features Close liaison with Patent Office to ensure patents issue Reputable and Strong Intellectual Property Law Firm | |
| Patent Violations |
Patents developed around the core technology Patented ingredients and formulations under development to be used within the pouch in specific categories | |
| Competing Products entering the Market, new technologies being developed. |
Patented aspects very strong design unique and very difficult to create similar product. Several different Sub-contracted Suppliers with Large Manufacturing Capability Patent-pending Manufacturing Process We own the Tooling |
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| Manufacturing | ||
| Manufacturing Capability | Manufacturing and Sourcing Expert on Board of Advisors | |
| Diverse Designs of the Pouch | Standardized size and design for initial categories | |
| FDA Approval for manufacturing facility required | Subcontracted with FDA approved facility. | |
| Product Liability | ||
| Ingredients supplied in pouch |
All ingredients to be under existing FDA approval or monograph, or have sufficient consumer safety testing completed |
|
| Consumer Liability | Comprehensive Liability Insurance | |
| Death or Disability or Key Management Executives | Life Insurance in Favor of the Corporation | |
| Application Technologies Inc. | ||
| Table of Contents | Appendices | |
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1. Executive Summary 2. Business Description 3. Management Team 4. Market Analysis 5. Marketing Strategy 6. Operations Strategy 7. Critical Risks 8. Deal Structure |
Notes on Financials Financials | |
| All information herein is confidential and belongs to Application Technologies Inc. | ||