Our Exclusive Global Channel Partner Agreement dated May 5, 2006 with ABB Inc. provides for a minimum purchase guarantee of $5,500,000 for the year ended December 31, 2008; however, we have agreed with ABB to a reduction of $250,000 in the minimum purchase guarantee for the quarter ending December 31, 2008. The minimum purchase guarantee for the quarter ending December 31, 2008 will now be $1,250,000. At our current level of operations, the 2008 minimum purchase guarantee would result in positive cash flow from operations for the year ended December 31, 2008. However, it is management’s intention to expand our business by developing products and services suitable for the consumer robotics market and the government and military markets. The full cost of expanding into these markets has not been determined but it is expected that some form of equity financing will be required to finance the expanded operations and to fund our bank loan repayment.
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