The Company is actively developing a number of distributors, licensing and OEM
opportunities and has signed agreements, as of October 1996, with Mobile Planet,
a US based distributor; Pocket Power, an Italian distributor, OEM agreements
with Thin Spin Holdings LLC and with Sanyo Information Systems UK Ltd. The
Company continues to progress with additional licensing and OEM opportunities,
which management believes could have a positive impact on future operations. Due
to the Company's high manufacturing overhead, the Company expects to report
gross losses until product sales and/or margins improve sufficiently to cover
the overhead. The Company's strategies to produce positive margins includes
increasing the volume of existing products and adding new products, such as
Mobile Office, reducing manufacturing cost, obtaining additional contract
manufacturing business and obtaining new revenues from OEM and licensing
agreements with companies like Sanyo. The Company believes the successful
implementation of these steps will bring the Company to profitability within the
next twelve months, however, there can be no assurances that the Company can
successfully implement its plan to improve operations and/or achieve positive
gross margins in the future.

http://sec.edgar-online.com/1996/11/...

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