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Application Technologies Inc.
Critical Risks and Risk Reduction Strategy

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 FactorInsurance ProvisionPro-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
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 LiabilityComprehensive Liability Insurance 
Death or Disability or Key Management Executives Life Insurance in Favor of the Corporation  

Application Technologies Inc.
Table of ContentsAppendices
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
All information herein is confidential and belongs to Application Technologies Inc.