Development Stage Activities Clause Samples

Development Stage Activities. The Company was originally organized to seek business opportunities in the high technology field. In January of 2002, the Company entered into a joint venture letter agreement for the development and marketing of a technology for automobile air bag inflation as more particularly described below (the "Airbag Technology').The Airbag Technology is a patented technology for automotive airbag inflation using cool gases. The Company provided initial funding to the Airbag Technology of $123,000 but decided not to proceed and has written the off those advances. The Company subsequently negotiated the terms of a proposed joint venture with TechniScan, Inc. ("TechniScan') to develop, market and sell medical devices including a breast cancer imaging system (the "SafeScan Imaging System') employing TechniScan's proprietary inverse scattering technology (the "Technology').The Company decided not to proceed with the TechniScan Joint Venture and has converted the advances made into equity of TechniScan, Inc. The Company on January 14, 2004 entered into a Letter of Intent with Exelar Corporation to provide funding for the continued development of Exelar's technology which utilizes small super conducting magnets to control therapeutic radiation doses delivered by photon linear accelerators.The Company entered into final agreement on March 25, 2004.(See subsequent events) Since inception, the Company has suffered recurring losses and net cash outflows from operations. The Company expects to continue to incur substantial losses to complete the development of its business. Since its inception, the Company has funded operations through common stock issuances and related party loans in order to meet its strategic objectives. Management believes that sufficient funding will be available to meet its business objectives, including anticipated cash needs for working capital, and is currently pursuing several financing options. However, there can be no assurance that the Company will be able to obtain sufficient funds to continue the development of a business. As a result of the foregoing, there exists substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.