Exhibit 99.1 Form 10-SB
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-SB
General Form for Registration of Securities of Small Business
Issuers
Under Section 12(b) or (g) of the Securities Exchange Act of
1934
Aftersoft Group, Inc. f/k/a W3 Group, Inc.
(Exact name of small business issuer as specified in its
charter)
Delaware
0-27083
84-1108035
(State or other jurisdiction
(Commission
(I.R.S. Employer
of
incorporation)
File Number)
Identification No.)
Savannah House 5th Floor 11 Charles II Street London SW1Y 4QU UK
83728
(Address of principal executive offices) (Zip Code)
+44 207 451 2468
(Registrant's telephone number, including area code)
Securities
to be registered under Section 12(b) of the Exchange Act:
None
--------------------------------------------------------------------------------
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AFTERSOFT GROUP, INC.
TABLE OF CONTENTS
PART I
Item 1 Description of Business
Item 2 Management's Discussion and Analysis or Plan of
Operation
Item 3 Description of Property
Item 4 Securities Ownership of Certain Beneficial Owners and
Management
Item 5 Directors, Executive Officers, Promoters and Control
Persons
Item 6 Executive Compensation
Item 7 Certain Relationships and Related Transactions
Item 8 Description of Securities
PART II
Item 1 Market Price and Dividends on the Registrant's Common
Equity
and
Other Stockholder Matters
Item 2 Legal Proceedings
Item 3 Changes in and Disagreements with Accountants
Item 4 Recent Sales of Unregistered Securities
Item 5 Indemnification of Directors and Officers
PART F/S
Financial Statements for year ending June 30, 2005
Financial Statement Notes for year ending June 30, 2005
Financial Statements for three months ending September 30, 2005
Financial Statement Notes for three months ending September 30,
2005
Consolidated Financial Statements for Aftersoft Group, Inc.
as of December 21,
2005
Statement of Operations for Aftersoft Group, Inc. for July 1, 2005
to
December 21, 2005
PART III
Signature
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PART I
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements contained in this Form 10-SB, other than statements
of historical
facts, that address future activities, events or developments
are
forward-looking statements, including, but not limited to,
statements containing
the words "believe," "anticipate," "expect" and words of similar
import. These
statements are based on certain assumptions and analyses made by us
in light of
our experience and our assessment of historical trends, current
conditions and
expected future developments as well as other factors we believe
are appropriate
under the circumstances. However, whether actual results will
conform to the
expectations and predictions of management is subject to a number
of risks and
uncertainties that may cause actual results to differ
materially.
Such risks include, among others, the following: international,
national and
local general economic and market conditions: our ability to
sustain, manage or
forecast our growth; availability of adequate financing on
acceptable terms in
timely fashion, or at all; raw material costs and availability; new
product
development and introduction; existing government regulations and
changes in, or
the failure to comply with, government regulations; adverse
publicity;
competition; the loss of significant customers or suppliers;
fluctuations and
difficulty in forecasting operating results; changes in business
strategy or
development plans; business disruptions; the ability to attract and
retain
qualified personnel; the ability to protect technology; and other
factors
referenced in this and previous filings.
Consequently, all of the forward-looking statements made in this
Form 10-SB are
qualified by these cautionary statements and there can be no
assurance that the
actual results anticipated by management will be realized or, even
if
substantially realized, that they will have the expected
consequences to or
effects on our business operations.
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As used in this Form 10-SB, unless the context requires otherwise,
"we" or "us"
or the "Company" means Aftersoft Group, Inc.
ITEM 1. DESCRIPTION OF BUSINESS
BACKGROUND OF THE COMPANY
Aftersoft Group is a leading provider of business and supply chain
management
solutions primarily to automotive parts manufacturers, retailers,
tire and
service chains, independent installers and wholesale distributors
in the
automotive aftermarket. The Company conducts its businesses through
subsidiaries
with operations in Europe and North America. MAM Software Limited
is the leading
supplier of software to the automotive parts market in the U.K. MAM
Software
consists of MAM Autopart Ltd, MAM AutoCat Ltd. and MAM Autowork
Ltd., which are
all based in Sheffield, UK. Aftersoft Network North America, Inc.
is comprised
of AFS Warehouse Distribution Management, Inc. and AFS Tire
Management Inc.,
which are based in San Juan Capistrano, California and AFS
Autoservice, Inc.,
which is based in Allentown PA. Aftersoft Network North America was
formerly
known as CarParts Technologies Acquisition Corp. and AFS Tire
Management was
formerly known as CarParts Technologies, Inc. Together these
subsidiaries are
the second largest supplier of software to the automotive parts
market in the
U.S.
BUSINESS OVERVIEW
Aftersoft seeks to provide a comprehensive suite of software
solutions to the
aftermarket automobile industry. Currently this is being achieved
through the
operations of its subsidiaries.
MAM Software Limited
MAM Software Limited, a wholly owned subsidiary of the Company, is
the largest
professional software provider to the UK automotive aftermarket.
MAM Software
specializes in the provision of reliable and competitive business
management
solutions to the motor factoring (jobber), retailing, and wholesale
distribution
sectors. It also develops applications for vehicle repair
management and
provides solutions to the retail and wholesale tire industry. All
MAM software
programs are based on the Microsoft Windows family of operating
systems. Each
program is fully compatible with the other applications in their
range, enabling
them to be combined to create a fully integrated package.
Aftersoft Network North America Inc
Aftersoft Network North America, Inc. (AFS), a wholly owned
subsidiary of the
Company, develops open business automation and distribution channel
eCommerce
systems for the automotive aftermarket supply chain. These systems
are used by
more than 3,000 leading aftermarket outlets, including tier one
manufacturers,
program groups, warehouse distributors, tire and service chains and
independent
installers. With AFS products and services many companies now
generate new
sales, operate more cost efficiently, accelerate inventory turns
and maintain
stronger relationships with suppliers and customers.
BUSINESS GOAL
Our management believes that there is a clear need for our services
and products
in the aftermarket segment of the automotive industry. Our goal is
to continue
to provide first class solutions to enable our customers to achieve
streamlined
operations thereby increasing their scope for a greater profit
margin. Our goal
is to continue to develop our business organically and to seek new
software
solutions and packages through development or acquisition that will
enhance our
offering to our customers and thereby ensuring that we gain repeat
business, and
ultimately returning value to our shareholders.
OUR CURRENT PRODUCT OFFERINGS
Aftersoft is a leading provider of software, information and
services primarily
to wholesale distributors of automotive parts and tires and the
providers of
automotive repair and maintenance services for the automotive
aftermarket in the
United States, United Kingdom and Canada.
The Company's customer base consists of wholesale parts & tire
distributors,
retailers, franchisees, cooperatives, auto service chains and
single location
auto service businesses with high customer service expectations and
complex
commercial relationships.
The automotive aftermarket represents that business associated with
the life
cycle of a motor vehicle, the time between the expiration of the
original
manufacturers' warranty, when the benefit of initial purchase runs
out, and the
vehicle's end of life, when it is scrapped. The market includes the
parts, tires
and auto services required to maintain and improve the performance
or appeal of
a vehicle throughout its useful life.
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The Company services the automotive aftermarket with business
management
systems, information products and online services that its
customers use to
manage their critical day-to-day business operations through
automated
point-of-sale, inventory management, purchasing, general accounting
and customer
relationship management.
The Company's revenues are derived from the following:
o
Business management systems comprised of proprietary software
applications, implementation and training; and
o
Subscription-based services, including software support and
maintenance,
information (content) products and online services.
Industry Overview
The Company meets the business needs of customers who are involved
in the
maintenance and repair of automobiles and light trucks in three key
segments of
the automotive aftermarket, namely parts, tires and auto
service.
In the United States, according to the Automotive Aftermarket
Industry
Association (AAIA), the automotive aftermarket generated $167.8
billion in sales
in 2001 which, based on the U.S. Department of Commerce's Bureau of
Economic
Analysis report for 2001, ranked as the 14th largest industry in
the United
States. For 2003, AAIA estimates that the automotive aftermarket
sales increased
to $183.0 billion, or at an annualized rate of 4% growth over 2001.
Further,
based on the U.S. Department of Labor's statistics for 2002, the
AAIA estimates
that the automotive aftermarket accounted for 3% of all jobs in the
United
States.
In the United Kingdom, according to a 2003 report by the UK
Department of Trade
and Industry, the value of the UK automotive aftermarket, the
annual cost of
maintaining Britain's 27 million vehicles is approximately $24
billion. Longer
warranties defer the start of aftermarket revenue, except for
running spares and
service parts, accident damage, and optional add-ons like
security,
entertainment and customization. Sales of new vehicles in Britain
amount to $42
billion each year. Maintaining the 27 million vehicles, however,
gives rise to
the annual $24 billion aftermarket, including $22 billion in spare
parts and
fitting charges and $2 billion in inspection revenues.
The Company believes that growth in the automotive aftermarket will
continue to
be driven by:
o
gradual growth in the aggregate number of vehicles in use;
o
increase in the average age of vehicles in operation;
o
growth in the total number of miles driven per vehicle per year;
and
o
increased vehicle complexity.
There are two primary vertical distribution channels through which
aftermarket
parts and tire distribution occurs: the traditional wholesale
channel and the
retail channel;
Automotive Aftermarket Distribution Channels
The following is a description of the vertical distribution
channels in the
automotive aftermarket.
o
Traditional Wholesale Channel. The wholesale channel is the
predominant
distribution channel in the automotive aftermarket. It is
characterized by
the
distribution of parts from the manufacturer to a warehouse
distributor, to parts stores and then to automotive service
providers.
Warehouse
distributors sell to automotive service providers through parts
stores,
which are positioned geographically near the automotive service
providers
they serve. This distribution method provides for the rapid
distribution of parts. The Company has products and services that
meet the
needs of
the warehouse distributors, parts stores and the automotive
service
providers.
o
Retail Channel. The retail channel is comprised of large
specialty
retailers,
small independent parts stores and regional chains that sell to
"do-it-yourself" customers. Larger specialty retailers, such as
Advance
Discount
Auto Parts, AutoZone, Inc., O'Reilly Automotive, Inc. and CSK
Auto
Corporation, carry a greater number of parts and accessories at
more
attractive
prices than smaller retail outlets and are gaining market
share. The
business management systems used in this channel are custom
developed
by the large specialty retailers and for the small to medium
businesses
purchased from business systems providers. The Company has
products
and services that support the retail channel.
In addition to these two primary channels some aftermarket parts
and tires do
end up being distributed to the new car dealers. The business
management systems
used in this channel have unique functionality specific to new car
dealerships.
The Company sells a small number of products into the auto service
provider side
of car dealerships and the aftermarket wholesalers of parts and
tires do some
business with new car dealerships by providing them online
purchasing
capabilities.
Need for Technology Solutions
There are a variety of factors that drive the need for technology
solutions
within the automotive aftermarket.
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o
Inventory Management. Industry sources suggest that approximately
35% of
parts
produced are never sold and 30% of parts stocked are never sold.
In
addition,
according to a University of the Aftermarket Study,
approximately 25% of parts sold are eventually returned due to a
lack of
knowledge
or capability by either the parts supplier counterman or the
auto service
provider installer. Thus, there is substantial inefficiency
in the
automotive aftermarket supply chain. This inefficiency results
in
excess
inventory carrying costs, logistical costs and the
over-production
of parts
and tires at the manufacturer level. Overcoming these
challenges
requires
the combination of business systems software, information
products,
and connectivity services.
o
Competition. In the US the need for technology solutions has
been
accelerated by the expansion of large specialty parts retailers
such as
Advance
Auto Parts Inc. and large auto service chains like Monro
Muffler
and Brake
Inc. This expansion has driven the smaller competitors to
computerize or upgrade their existing systems with more modern
business
management
solutions enabled for information products and online services.
Many of
the systems in use today are older, character-based or in-house
developed
systems with limited capability for integrating current
information products and online services.
o
Volume and Complexity of Information. Businesses in the
automotive
aftermarket are required to manage large volumes of information
from
numerous
sources with complex inter-relationships. There are over 4.5
million
different stock-keeping units (SKUs), available to parts
sellers
in the
product catalogs used by the U.S. automotive aftermarket. The
number of
SKUs increase in the order of some 5% each year. Moreover,
manufacturers update product information and product prices
with
increasing
frequency as they improve their internal processing and try to
keep pace
with consumer trends. As a result, most automotive aftermarket
businesses
require sophisticated inventory management systems, accurate
and timely
information on parts, tires, and repair delivered through
online
services to communicate, manage and present this volume of
data.
o
Customer Service Requirements. Consumer demand for same day repair
service
and the
need to optimize thru-put of repair bays forces automotive
service
providers
to demand prompt and accurate delivery of specific parts and
tires from
their suppliers. Therefore, the ability of either the auto
service
provider and the warehouse distributor or parts store to access
information about a products availability and price so as to be
able to
promptly
get the required product is critical to the success of all
parties.
To meet these demanding customer service requirements, there is
a
need for
business management systems, product information and online
services
that enable workers to reliably and accurately transact their
business
between warehouse distributors, parts stores and automotive
service
providers.
o
Regional Efficiencies. The usage and availability of a combination
of
business
management systems, information products and online services
has
resulted
in the development of regional trading networks among auto
service
provider chains, parts stores, parts warehouse distributors and
tire
warehouse distributors. This enables participants to achieve
the
efficiencies and customer service levels that are key to being
competitive
and
successful against the larger retail and service chains in the
automotive
aftermarket.
The Company's Systems and Services
Meeting the needs of the automotive aftermarket requires a
combination of
business management systems, information products and online
services that
combine to deliver benefits for all parties involved in the timely
repair of a
vehicle. The Company provides systems and services that meet these
needs and
help its customers to meet their customers' expectations. These
products and
services include:
o
business management systems comprised of the Company's
proprietary
software
applications, implementation and training and third-party
hardware
and peripherals;
o
information products related to parts, tires, labor estimates,
scheduled
maintenance, repair information, technical service bulletins,
pricing and
product
features and benefits which are used by the different
participants
in the
automotive aftermarket; and
o
Online services and products that provide online connectivity
between
manufacturers, warehouse distributors, retailers and automotive
service
providers.
These products enable electronic data interchange throughout
the
automotive aftermarket supply chain between the different
trading
partners.
They also enable procurement and business services to be
projected
over the web to an expanded business audience.
The Company's business management systems meet the needs of
warehouse
distributors, part stores and automotive service providers as
follows:
Warehouse Distributors
o
AFS Warehouse Distribution Management, Inc.: DirectStep. This
product is
designed
for and targeted at warehouse distributors that seek to manage
multiple
locations and inventories on a single system. AFS Warehouse
provides
distributors a complete business management system for
inventory
management, customer maintenance, accounting, purchasing and
business
analytics.
The products enable online trading and services including price
and
product information updating integrated with AFS Autoservice,
Inc.'s
Autopart
and VAST products, which are used by parts stores and
automotive
service
providers.
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Parts Stores
o
AFS Autoservice, Inc.: .Autopart This product is designed for and
targeted
at parts
store chains that seek to manage multiple locations and
inventories on a single system for a regional area and are also
suited to
managing
single location franchisees or buying group members. Theproduct
provides
point of sale, inventory management, electronic purchasing
capabilities and a fully integrated accounting module. It also
allows the
parts
stores to connect with automotive service providers through the
AFS
Autoservice's online services.
Automotive Service Providers
o
AFS Autoservice, Inc.: VAST. This product is designed for and
targeted at
large to
medium automotive service chains that seek to manage multiple
locations
and inventories for a regional area is also suited to managing
single
location stores that are part of a franchise or a buying group.
The
Company's
VAST product provides point-of-sale, inventory management,
electronic
purchasing and customer relationship management capabilities.
It also
allows the automotive service provider locations to connect
with
parts and
tires warehouse distributors and parts stores through the
Company's
online services and products.
o
AFS Autoservice, Inc:Autowork. This product is designed for and
targeted
at small
single store automotive installers. The Autowork product
provides
estimate,
job card, parts procurement and invoice capabilities. It also
allows the
automotive installer to connect with parts distributors through
the
company's online services and products.
In addition to the above principal products, the Company also
services,
maintains and provides upgrades for, but does not actively sell,
three
additional products for its aftermarket customers that are still
utilizing these
systems. These products, ASP, BDG and Tradera, track inventory,
perform
accounting functions and execute point-of-sale operations such as
invoicing and
billing.
Information Products
The Company provides product catalog and vehicle repair information
required to
enable point-of-sale transactions. These proprietary database
products and
services generate recurring revenues through monthly subscription
fees.
In the United Kingdom, the Company develops and maintains
proprietary
information products which in the UK differentiate the Company's
products from
those of the majority of its competitors. In the U.S. and Canada,
the Company
develops and maintains a proprietary workflow capability that
integrates
information products sourced from its suppliers to its automotive
parts and tire
customers, including warehouse distributors, parts stores and
automotive service
providers.
The Company's principal information service is Autocat. The
Company's UK
information product provides access to a database of over 9 million
unique
automobile vehicle applications for approximately 500,000
automotive parts
product lines. Business systems software used by the warehouse
distributor,
parts store and auto service provider enable the user to access the
part
information quickly and accurately. The Company charges an annual
or monthly
subscription fee for its information products and provides
customers with
periodic updates. In the UK there are approximately 1,300
aftermarket companies
subscribing to the Company's information products. In the U.S. and
Canada, the
Company resells a significant number of information products.
In addition, other information products developed or resold by the
Company
include Interchange Catalog, a database that provides cross
references of
original equipment manufacturer part numbers to aftermarket
manufacturer part
numbers; Price Updating, a service that provides electronic price
updates
following a price change by the part manufacturer; Labor Guide, a
database used
by automotive service providers to estimate labor hours for
purposes of
providing written estimates of repair costs to customers; Scheduled
Service
Intervals, a database of maintenance intervals; and Tire Sizing, a
database that
cross-references various tire products and applications.
Customer Support Services
The companies provide post-sale support, consulting and training.
Customers can
call the company support lines for access to personnel who provide
support and
perform on-line problem solving as required. The Company also
provides a
customer only section of the Company's intranet site that allows
customers
direct access to news groups, on-line documentation and product and
services
related information. New customers enter into support agreements,
and most
retain such service agreements for as long as they own the system.
Monthly fees
vary with the number of locations and the software modules,
information products
and online services subscribed to. The agreements are generally
month-to-month
agreements. The Company offers training for customers at its
facilities, at a
customer's facilities and online for product updates or introducing
specific new
capabilities.
Online Services
The Company offers online e-commerce services as both
system-to-system and web
browser implementations. These online services connect the
automotive
aftermarket from manufacturers through warehouse distributors and
parts stores
to automotive service providers for the purpose of purchasing of
parts and
tires, fleet and national account transaction processing and
product information
distribution.
e-Commerce Gateway Services. In the U.S. and Canada, the Company's
e-Commerce
services utilizes automotive industry standard messaging
specifications to
deliver online services that connect manufacturers, warehouse
distributors,
parts stores and automotive service providers for the purpose of
purchasing
parts and tires, fleet and national account transaction processing,
online
product and price updating for parts and tires.
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e-Commerce Browser Services. In the U.S. and Canada the Company's
e-Commerce
browser services enable warehouse distributors and parts stores to
provide an
online service to automotive service providers for the purpose of
purchasing of
parts and tires, accessing account information and other browser
based channel
management services.
Autonet. In the UK the Company's Autonet online services connect
manufacturers,
warehouse distributors, parts stores and automotive service
providers for the
purpose of purchasing of parts and tires, fleet and national
account transaction
processing and product information and price distribution.
Autocat. The Company's UK product information database is available
for access
and distribution as a web driven service. Named Autocat+, the
database and
access software have been enhanced to enable consumers and service
professionals
to look up automotive products for themselves, view diagrams and
select the
parts for their vehicle. This product is used by parts stores and
professional
installer segments of the automotive parts aftermarket. In the U.S.
and Canada
the Company resells a similar online service.
Company Operations
Sales and Marketing
The Company's sales and marketing strategy is to acquire customers
and retain
them, to cross sell and up sell to its customers a range of
commercially
compelling business management systems, information products and
online
services.
Within the parts, tire and auto service provider segments, the
Company sells and
markets through a combination of field sales, inside sales, and
independent
representatives. The Company seeks to partner with large customers
or buying
groups and leverage there relationships with their customers or
members.
Incentive pay is a significant portion of the total compensation
package for all
sales representatives and sales managers. The Company's sales focus
primarily on
identifying and selling to new customers complemented by an inside
sales focus
on selling upgrades and new software applications to its installed
base.
The Company's marketing approach aims to leverage the Company's
reputation for
customer satisfaction and for delivering systems, information and
services that
improve a customer's commercial results. The goal of these
initiatives is
maximize customer retention and recurring revenues and to enhance
the
productivity of the field sales team and to create the cross
selling and up
selling opportunities for its systems, information products and
online services.
Product Development
The Company's product development strategy is to integrate all of
its products,
to enhance its current products using customer funded engineering
and to provide
a migration path to the Company's commercially compelling
replacement systems.
This approach has three key benefits that support the Company's
strategy. First,
it maximizes the retention of customers and their recurring
revenues by adding
value to their business. Second, it creates the opportunity to up
sell
replacement business systems, information products and online
services to
existing customers. Third, it avoids the fear that most customers
have of
disruption to their business resulting from changing systems.
Customer Support and Consulting
We provide support and consulting to customers to ensure the
successful use of
our products and services. The Company's support and consulting
also builds
customer relationships, enhances customer satisfaction and
maximizes customer
retention. The Company's customer support and consulting
organization consists
of:
o
Phone and online support. The Company's customers can call its
support
line for
access to personnel who provide support and perform on-line
problem
solving as required.
o
Implementation, education and training consulting. When the Company
sells
a new
system its consulting and training team work together to
minimize
the
disruption to a customer's business during the implementation
process
and to
maximize the customers' benefit from the use of the system by
training
them.
The Company's UK catalog information product and other information
services are
delivered by its Autocat product team. The Autocat product team
sources,
standardizes and formats data collected from over 130 automotive
parts
manufacturers. The data generally is sourced from aftermarket
parts
manufacturers in electronic format. The Company generally produces
catalog
updates on compact discs approximately four times per year from its
facilities
in Wareham, England. The Company provides this data to its
customers in a
variety of formats including more recently as an online
subscription.
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Competition
In the U.S. and Canada, the Company competes primarily with
Activant, Inc. and
several smaller software companies, including iCarz, Autologue and
Wrenchead,
Inc. that provide similar products and services to the U.S.
automotive
aftermarket.
Additionally, one of the opportunities and ongoing competitive
threat to the
Company is custom developed in-house systems, information products
and online
services. For example, AutoZone, Inc. and Genuine Parts Company's
NAPA Parts
Group both developed their own business management systems and
electronic
automotive parts catalogs for their stores and members.
Several large enterprise resource planning and software companies
have made
public announcements regarding the attractiveness of various small
and medium
enterprise vertical markets, including Microsoft Corporation,
Oracle Corporation
and Intuit Inc. The Company has not competed with any of these
larger software
and service companies. However, there can be no assurance that they
will not
develop or acquire a competitive offering in the future.
In the UK, the Company competes primarily with Activant and several
other
smaller software companies including EGO and RAMDATA.
Customers
For its fiscal year ended June 30, 2005, no single customer
accounted for more
than 10% of the Company's total revenues. The Company's top ten
customers
accounted for 20% of its total revenues. Some of the Company's top
customers in
North America include Monro Muffler Brake, Fountain Tire and Allied
Exhaust
Systems. In the UK market the Company's top customers include Brown
Brothers,
Motorparts Direct, Carlac Ltd, TMS Motor Spares, Central Auto
Supplies, CES Ltd,
Jayar Components, and L Bennett and Son Ltd
OUR EMPLOYEES
Aftersoft Group, Inc. has 170 full-time employees. Of these, 17 are
management
employees and 153 are administrative or support staff. Of these
employees, 21
are located in our offices in San Juan Capistrano, CA, 32 are
located in our
offices in Allentown, PA, and 117 are located in our offices in the
United
Kingdom. All of our employees have executed customary
confidentiality and
restrictive covenant agreements.
RISK FACTORS
Our business, financial condition or operating results are subject
to a number
of risk factors, both those that are known to us and identified
below and others
that may arise from time to time. These risk factors could cause
our actual
results to differ materially from those suggested by
forward-looking statements
in this document and elsewhere, and may adversely affect our
business, financial
condition or operating results. If any of those risk factors should
occur,
moreover, the trading price of our securities could decline, and
investors in
our securities could lose all or part of their investment in our
securities.
These risk factors should be carefully considered in evaluating the
Company and
its prospects.
We have a limited operating history which makes it difficult to
evaluate our
business and to predict our future operating results.
We were organized in July 2005. Since our inception, we have been
primarily
engaged in organizational activities, including developing a
strategic operating
plan, entering into various collaborative agreements for the
development of
products and technologies, hiring personnel and developing and
testing our
products.
We may fail to address risks we face as a developing business which
could
adversely affect the implementation of our business plan.
We are prone to all of the risks inherent in the establishment of
any new
business venture. You should consider the likelihood of our future
success to be
highly speculative in light of our limited operating history, as
well as the
limited resources, problems, expenses, risks and complications
frequently
encountered by similarly situated companies.
To address these risks, we must, among other things,
o
maintain and increase our product portfolio;
o
implement and successfully execute our business and marketing
strategy;
o
continue to develop new products and upgrade our existing
products;
o
respond to industry and competitive developments; and
o
attract, retain, and motivate qualified personnel.
We may not be successful in addressing these risks. If we are
unable to do so,
our business prospects, financial condition and results of
operations would be
materially adversely affec