Our business is subject to numerous risks, which are highlighted in the section entitled “Risk Factors” immediately following this prospectus summary. Some of these risks include:
· our limited operating history makes it difficult to evaluate our business and prospects;
· we have an agreement with only one potential customer and we will most likely be depending on a small number of customers for a significant portion of our revenue in the future;
· we may not be able to complete a design that meets our potential customer’s specifications;
· even if we succeed in developing a design that meets all the specifications in our development agreement, our potential customer could decline to use our design in its product or our customer’s product could fail in the marketplace;
· we are a development stage company, have a history of operating losses and we may never achieve or maintain profitability; in addition, the report of our independent registered public accounting firm on our financial statements appearing at the end of this prospectus contains an explanatory paragraph stating that our liquidity risk raises substantial doubt about our ability to continue as a going concern;
· our technologies are not yet verified in practice or on a commercial scale;
· laboratory conditions differ from commercial manufacturing conditions and field conditions, which could affect the effectiveness of our designs;
· our customers may rely on subcontractors to fabricate our circuit designs, and market acceptance of our designs could be adversely affected if the subcontractors decline to manufacture our designs;
· if our designs or our customers’ products that incorporate our designs do not achieve widespread market acceptance, we will not be able to generate the revenue necessary to support our business;
· our proprietary rights may be difficult to enforce, which could enable others to copy or use aspects of our solution without compensating us, thereby eroding our competitive advantages and harming our business;
· we may be subject to intellectual property rights claims by third parties, which are extremely costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies;
· our industry is subject to intense competition and rapid technological change, which may result in products or new solutions that are superior to our designs under development or other future designs we may bring to market from time to time and if we are unable to anticipate or keep pace with
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changes in the marketplace and the direction of technological innovation and customer demands, our designs may become less useful or obsolete and our operating results will suffer; and
· if our principal end markets fail to grow or experience declines, our revenues may decrease.