Exhibit 99.1

                                  RISK FACTORS

Our business is subject to a number of risks as outlined below. An investment in
our securities is speculative in nature and involves a high degree of risk. You
should read this report carefully and consider the following risk factors:

RISKS RELATED TO OUR COMPANY

WE HAVE A SIGNIFICANT ACCUMULATED DEFICIT AND WE MAY NEVER ACHIEVE
PROFITABILITY.

We have incurred significant net losses every year since our inception,
including net losses in 2005 and 2004. These losses have resulted principally
from expenses incurred in our research and development programs and general and
administrative expenses. We have also incurred non-cash expenses related to the
recognition of derivative liabilities. To date, we have not generated
significant recurring revenues. Our limited revenues that derive from sales of
the zNose(R) product have not been and may not be sufficient to sustain our
operations. We anticipate that we will continue to incur substantial operating
losses based on projected sales revenues less manufacturing, general and
administrative and other operating costs for the next twelve months. We expect
that our revenues will not be sufficient to sustain our operations for the near
term, notwithstanding any anticipated revenues we may receive when our vapor
detection products obtain increased visibility in our markets, due to the
significant costs associated with the development and marketing of our products.
No assurances can be given when we will ever be profitable.

We expect to continue to experience losses until the time, if ever, when we are
able to sell products sufficient to generate revenues adequate to support our
operations. If we fail to become profitable, we may be forced to cease
operations.

OUR LIMITED MANUFACTURING EXPERIENCE AND CAPACITY MAY LIMIT OUR ABILITY TO GROW
OUR REVENUES.

To be successful, we must manufacture our products in compliance with industry
standards and on a timely basis, while maintaining product quality and
acceptable manufacturing costs. We also currently use a limited number of
sources for most of the supplies and services that we use in the manufacturing
of our vapor detection and analysis technology. We do not have agreements with
our suppliers. Our manufacturing strategy presents the following risks:

     o    delays in the quantities needed for product development could delay
          commercialization of our products in development;

     o    if market demand for our products increases suddenly, our current
          suppliers might not be able to fulfill our commercial needs, which
          would require us to seek new supply arrangements and may result in
          substantial delays in meeting market demand; and

     o    we may not have intellectual property rights, or may have to share
          intellectual property rights, to any improvements in the manufacturing
          processes or new manufacturing processes for our products.

Any of these factors could delay commercialization of our products under
development, entail higher costs and result in our being unable to effectively
sell our products.

WE FACE SIGNIFICANT COMPETITION AND OUR BUSINESS AND FINANCIAL RESULTS COULD
SUFFER FROM COMPETITION.

While we are unaware of any competitor that has created a vapor analysis device
similar to the zNose(R), there are companies that offer products and services
that compete with the zNose(R) in our markets. We believe that manufacturers of
X-Rays, Ion Mobility Spectrometers, and other electronic noses compete with

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                                                                    Exhibit 99.1

us in the security-related markets. In the markets for instruments that analyze
chemicals, we compete with many manufacturers including Perkin-Elmer (NYSE: PKI)
and Agilent Technologies (NYSE: A). Many of our existing and potential
competitors have longer operating histories, greater experience, greater name
recognition, larger customer bases and significantly greater financial,
technical and marketing resources than we do. Because of their greater
resources, our competitors are able to undertake more extensive marketing
campaigns for their products and services, and make more attractive offers to
potential employees, strategic partners, and others. We may not be able to
compete successfully against our current or future competitors and our business
and financial results could suffer from such competition.

IF OUR PRODUCTS DO NOT ACHIEVE A SIGNIFICANT LEVEL OF MARKET ACCEPTANCE, IT IS
HIGHLY UNLIKELY THAT WE EVER WILL BECOME PROFITABLE.

To our knowledge, electronic nose technology, and our zNose(R) product, has yet
to receive widespread market acceptance in the markets we are focused on. The
commercial success of our current and future products will depend upon the
adoption of our zNose(R) technology by our customers. In order to be successful,
our future products must meet the technical and cost requirements for the
markets we intend to penetrate. Market acceptance will depend on many factors,
including:

     o    our ability to convince potential customers to adopt our products;

     o    the willingness and ability of potential customers to adopt our
          products;

     o    our ability to sell and service sufficient quantities of our products;
          and

     o    new, advanced technology offered by other companies which compete with
          our products.

Because of these and other factors, our products may not achieve market
acceptance. If our products do not achieve a significant level of market
acceptance, demand for our future products will not develop as expected and it
is highly unlikely that we ever will become profitable.

OTHER COMPANIES COULD CREATE A TECHNOLOGY WHICH COMPETES EFFECTIVELY WITH OUR
ZNOSE(R) TECHNOLOGY, AND WE MAY BE UNABLE TO MAINTAIN OUR EXISTING, OR CAPTURE
ADDITIONAL, MARKET SHARE IN OUR MARKETS.

Based upon our review of the industry, we are unaware of any company today that
markets a technology which is similar to our zNose(R) technology. Nonetheless,
our intended markets generally are dominated by very large corporations (or
their subsidiaries), which have greater access to capital, manpower, technical
expertise, distribution channels and other elements which would give them a
competitive advantage over us were they to begin to compete directly against us.
It is possible that these and other competitors may implement new, advanced
technologies before we are able to, allowing them to provide more effective
products at more competitive prices. Any number of future technological
developments could:

     o    adversely impact our competitive position;

     o    require write-downs of obsolete technology;

     o    require us to discontinue production of obsolete products before we
          can recover any or all of our related research, development and
          commercialization expenses; or

     o    require significant capital expenditures beyond those currently
          contemplated.

We cannot assure investors that we will be able to achieve the technological
advances to remain competitive and profitable, that new products and services
will be developed and manufactured on schedule or on a cost-effective basis,
that anticipated markets will exist or develop for new products or services, or
that any marketed product will not become technologically obsolete.

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                                                                    Exhibit 99.1

WE DEPEND ON KEY PERSONNEL IN A COMPETITIVE MARKET FOR SKILLED EMPLOYEES, AND
FAILURE TO RETAIN AND ATTRACT QUALIFIED PERSONNEL COULD SUBSTANTIALLY HARM OUR
BUSINESS.

We believe that our future success will depend in large part on our ability to
attract and retain highly skilled engineering, sales and marketing and
management personnel. If we are unable to hire the necessary personnel, the
development of our business will likely be delayed or prevented. Competition for
these highly skilled employees is intense. As a result, we cannot assure you
that we will be successful in retaining our key personnel or in attracting and
retaining the personnel we require for expansion.

WE ARE DEPENDENT UPON A MAJOR CUSTOMER FOR A LARGE PERCENTAGE OF OUR SALES AND
ANY CHANGES TO THAT CUSTOMER'S BUSINESS OR OUR RELATIONSHIP WITH THAT CUSTOMER
COULD HAVE A SUBSTANTIAL EFFECT ON OUR SALES AND REVENUE.

Our largest customer is Beijing R&D Technology Co., Ltd., which is our exclusive
distributor in China. During the fiscal year ending December 31, 2005, purchases
by Beijing R&D Technology accounted for $601,000, or approximately 29% of our
total sales. We expect that in the upcoming fiscal year, Beijing R&D Technology
will continue to account for a large percentage of our total sales. If Beijing
R&D Technology experiences any changes in its business that affect its level of
purchases from Electronic Sensor Technology, or if there is any change in the
business relationship between Beijing R&D Technology and Electronic Sensor
Technology leading to a decrease in its level of purchases from Electronic
Sensor Technology, our sales and revenues could substantially decrease.

WE MAY NOT BE ABLE TO PROTECT OUR INTELLECTUAL PROPERTY AND MAY INFRINGE ON THE
INTELLECTUAL PROPERTY RIGHTS OF OTHERS.

The protection of our intellectual property, including our patents and other
proprietary rights, is important to our success and our competitive position.
Accordingly, we devote substantial resources to the maintenance and protection
of intellectual property through various methods such as patents and patent
applications, trademarks, copyrights, confidentiality and non-disclosure
agreements. We also rely on trade secrets, proprietary methodologies and
continuing technological innovation to remain competitive. We have taken
measures to protect our trade secrets and know-how, including the use of
confidentiality agreements with our employees. However, it is possible that
these agreements may be breached and that the available remedies for any breach
will not be sufficient to compensate us for damages incurred.

We currently have four patents in the United States and patents in various
foreign countries. There can be no assurance that the patents that we hold will
protect us from competition from third parties with similar technologies or
products, as it is possible that third parties may be able to develop similar
technologies or products without necessarily infringing on the patents that we
currently hold. Moreover, we cannot assure you that others will not assert
rights in, or ownership of, patents and other proprietary rights we may
establish or acquire or that we will be able to successfully resolve such
conflicts. We do not have reason to believe that our current patents are at
great risk of being challenged, however, due to the nature and complexity of our
technology, we cannot assure you that any patents issued to us will not be
challenged, invalidated or circumvented or that the rights granted under these
patents will provide a competitive advantage to us. Moreover, the laws of some
foreign countries do not protect intellectual property rights to the same extent
as the laws of the United States, and we could experience various obstacles and
high costs in protecting our intellectual property rights in foreign countries.
If we are unable to obtain or maintain these protections, we may not be able to
prevent third parties from using our intellectual property.

RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK

OUR STOCK PRICE IS SUBJECT TO EXTREME VOLATILITY.

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                                                                    Exhibit 99.1

The trading price of our common stock has been, and is likely to continue to be,
highly volatile and could be subject to wide fluctuations in response to factors
such as actual or anticipated variations in our quarterly operating results,
announcements of technological innovations, announcements of significant new
orders or cancellation of significant orders, or new products by Electronic
Sensor Technology or its competitors, changes in financial estimates by
securities analysts, conditions or trends in the analytic instrumentation
markets, changes in the market valuations of other security-detection oriented
companies, announcements by Electronic Sensor Technology or its competitors of
significant acquisitions, strategic partnerships, joint ventures or capital
commitments, additions or departures of key personnel, sales of common stock or
other securities of Electronic Sensor Technology in the open market and other
events or factors, many of which are beyond our control.

THERE IS NO ESTABLISHED TRADING MARKET FOR OUR SHARES OF COMMON STOCK. THE
LIQUIDITY OF OUR COMMON STOCK WILL BE AFFECTED BY ITS LIMITED TRADING MARKET.

Bid and ask prices for our common stock are quoted on the Over-the-Counter
Bulletin Board under the symbol "ESNR.OB." There is currently no broadly
followed, established trading market for our common stock. An established
trading market for our shares may never develop or be maintained. Active trading
markets generally result in lower price volatility and more efficient execution
of buy and sell orders. The absence of an active trading market reduces the
liquidity of our shares. Prior to the consummation of the merger in February
2005, we had no reported trading volume in our common stock. Since then, we have
had sporadic reported trading in our shares. As a result of this sporadic
trading activity, the quoted price for our common stock on the Over-the-Counter
Bulletin Board is not necessarily a reliable indicator of its fair market value.
Further, if we cease to be quoted, holders would find it more difficult to
dispose of, or to obtain accurate quotations as to the market value of, our
common stock, and the market value of our common stock would likely decline.

IF AND WHEN A TRADING MARKET FOR OUR COMMON STOCK DEVELOPS, BECAUSE WE ARE A
TECHNOLOGY COMPANY, WE EXPECT THAT THE TRADING PRICES WILL BE EXTREMELY
VOLATILE.

The trading prices of technology company stocks in general tend to experience
extreme price fluctuations. The valuations of many technology companies without
consistent product revenues or earnings, if any, are not based on conventional
valuation standards such as price to earnings and price to sales ratios. Any
negative change in the public's perception of the prospects of technology
companies could depress our stock price regardless of our results of operations
if a trading market for our stock develops. In addition, our stock price could
be subject to wide fluctuations in response to factors including, but not
limited to, the following:

     o    announcements of new technological innovations or new products by us
          or our competitors;

     o    conditions or trends in the sensor technology industry;

     o    changes in the market valuations of other technology companies;

     o    developments in domestic and international governmental policy or
          regulations that affect the technology utilized in our products;

     o    announcements by us or our competitors of significant acquisitions,
          strategic partnerships, joint ventures or capital commitments;

     o    developments in patent or other proprietary rights held by us or by
          others; or

     o    loss or expiration of our intellectual property rights.

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                                                                    Exhibit 99.1

WE MAY RAISE ADDITIONAL CAPITAL THROUGH A SECURITIES OFFERING THAT COULD DILUTE
THE OWNERSHIP INTERESTS OF OUR SHAREHOLDERS.

We require substantial working capital to fund our business. If we raise
additional funds through the issuance of equity, equity-related or convertible
debt securities, these securities may have rights, preferences or privileges
senior to those of the holders of our common stock. The issuance of additional
common stock or securities convertible into common stock by our management will
also have the effect of further diluting the proportionate equity interest and
voting power of holders of our common stock.

In addition, under our articles of incorporation, our Board of Directors is
authorized to issue, without obtaining shareholder approval, shares of preferred
stock having the rights, privileges and designations as determined by the Board
of Directors. Therefore, the Board of Directors could issue shares of preferred
stock that would have preferential liquidation, distribution, voting, dividend
or other rights, which would be superior to the rights of common stockholders.

A SIGNIFICANT NUMBER OF OUR SHARES ARE ELIGIBLE FOR SALE, AND THEIR SALE COULD
DEPRESS THE MARKET PRICE OF OUR COMMON STOCK.

Sales of a significant number of shares of our common stock in the open market
could harm the market price of our common stock. A reduced market price for our
shares could make it more difficult to raise funds through future offerings of
common stock. Approximately 27 million shares are presently eligible for trading
in the open market. As additional shares become available for resale in the open
market, including new shares issued upon conversion of our debentures issued on
December 7, 2005, the exercise of our outstanding options, warrants, and
contractual obligations to issue shares, the number of our publicly tradable
shares will increase, which could decrease their trading price. In addition,
some of our shares may be offered from time to time in the open market pursuant
to Rule 144, and these sales may have a depressive effect on the market for our
shares. In general, a person who has held restricted shares for a period of one
year may, upon satisfying certain conditions to the application of Rule 144,
sell into the market shares up to an amount equal to 1% of the outstanding
shares (and potentially more) of our common stock. These sales may be repeated
once each three months. In addition, an unlimited amount of restricted shares
may be sold by a non-affiliate after they have been held for two years pursuant
to Rule 144(k).

WE ARE NOT REQUIRED TO FILE REPORTS WITH THE SEC ON A CONTINUOUS BASIS BECAUSE
OUR STOCK IS NOT CURRENTLY REGISTERED UNDER THE EXCHANGE ACT.

Our registered common stock is registered under the Securities Act and is not
currently registered under the Exchange Act. On March 24, 2006 we filed a
registration statement with the SEC on Form 10-SB to register our common stock
pursuant to the Exchange Act, which will become effective within 60 days of
filing such registration statement, unless the SEC directs otherwise. Once the
registration statement is effective, we will be subject to the filing
requirements of the Exchange Act, including the requirement to file various
reports relating to the ownership of our stock, and compliance with the proxy
rules, which require, among other things, that we send out proxy materials and
annual reports to our shareholders in connection with our annual meetings.
However, until such registration statement is effective, our duty to file
reports with the SEC is automatically suspended for any fiscal year, other than
the fiscal year within which a registration statement that we filed under the
Securities Act became effective, and we have less than 300 record holders of our
shares at the beginning of such fiscal year. We presently have substantially
below 300 record holders of our shares. Although we have chosen to continue such
reporting with the SEC on a voluntary basis in the past and intend to continue
to do so in the immediate future, we currently have no legal obligation to file
reports with the SEC and will not have any such legal obligation until our
registration statement on Form 10-SB is effective, provided we continue to have
less than 300 record holders of our shares.

WE ARE SUBJECT TO THE SEC'S PENNY STOCK RULES.

Broker-dealer practices in connection with transactions in "penny stocks" are
regulated by certain rules adopted by the SEC. Penny stocks generally are equity
securities with a price of less than $5.00, other than

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                                                                    Exhibit 99.1

securities registered on certain national securities exchanges or quoted on the
NASDAQ Stock Market if current price and volume information with respect to
transactions in such securities is provided by the exchange or system. The rules
require that a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from the rules, deliver a standardized risk disclosure document
that provides information about penny stocks and the risks in the penny stock
market. The broker-dealer also must provide the customer with current bid and
offer quotations for the penny stock, the compensation of the broker-dealer and
its salesperson in connection with the transaction and monthly account
statements showing the market value of each penny stock held in the customer's
account. In addition, the rules generally require that prior to a transaction in
a penny stock, the broker-dealer must make a special written determination that
the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. These disclosure requirements
may have the effect of reducing the liquidity of penny stocks. Our securities
are subject to the penny stock rules. As such, holders of our shares of common
stock may find it more difficult to sell their securities.

WE HAVE NOT PAID DIVIDENDS IN THE PAST AND DO NOT EXPECT TO PAY DIVIDENDS IN THE
FUTURE. ANY RETURN ON INVESTMENT MAY BE LIMITED TO POTENTIAL FUTURE APPRECIATION
IN THE VALUE OF OUR STOCK.

We have never paid cash dividends on our stock and do not anticipate paying cash
dividends on our stock in the foreseeable future. The payment of dividends on
our shares, if ever, will depend on our earnings, financial condition and other
business and economic factors affecting us at such time as the Board of
Directors may consider relevant. If we do not pay dividends, our stock may be
less valuable because a return on investment will only occur if and to the
extent that our stock price appreciates, and if the price of our stock does not
appreciate, then there will be no return on investment.

OUR ANTI-TAKEOVER DEFENSE PROVISIONS MAY DETER POTENTIAL ACQUIRERS AND DEPRESS
OUR STOCK PRICE.

Certain provisions of our articles of incorporation, bylaws and Nevada law could
be used by our incumbent management to make it substantially more difficult for
a third party to acquire control of us. These provisions include the following:

     o    we may issue preferred stock with rights senior to those of our common
          stock; and

     o    the Board of Directors may fill casual vacancies occurring in the
          Board of Directors and may appoint one or more additional directors
          between annual meetings of shareholders to hold office until the next
          annual meeting of shareholders.

These provisions may discourage certain types of transactions involving an
actual or potential change in control. These provisions may also limit our
shareholders' ability to approve transactions that they may deem to be in their
best interests and discourage transactions in which our shareholders might
otherwise receive a premium for their shares over the then current market price.

SOME OF OUR EXISTING SHAREHOLDERS CAN EXERT CONTROL OVER US, AND MAY NOT MAKE
DECISIONS THAT ARE IN THE BEST INTERESTS OF ALL SHAREHOLDERS.

Our officers, directors and principal shareholders together control
approximately 43.4% of our outstanding common stock. Land & General Berhad
through its wholly owned subsidiary, L&G Resources (1994), Inc., owns
approximately 18.4% of our outstanding common stock. As a result, these
shareholders, if they act together, will be able to exert a significant degree
of influence over our management and affairs and over matters requiring
shareholder approval, including the election of directors and approval of
significant corporate transactions. In addition, this concentration of ownership
may delay or prevent a change in control of Electronic Sensor Technology and
might affect the market price of our shares, even when a change may be in the
best interests of all shareholders. Moreover, the interests of this
concentration of ownership may not always coincide with our interests or the
interests of other shareholders, and,

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                                                                    Exhibit 99.1

accordingly, they could cause us to enter into transactions or agreements which
we would not otherwise consider.

SHAREHOLDERS REPRESENTING A SMALL NUMBER OF OUR SHARES MAY TAKE SHAREHOLDER
ACTION THAT WOULD AFFECT ALL SHAREHOLDERS.

Our bylaws provide that two persons present and being, or representing by proxy,
shareholders constitutes a quorum for purposes of shareholders' meetings. In
order for action to be approved at a shareholders' meeting, other than the
election of directors, a majority of the votes cast in favor of the action must
exceed the number of votes cast in opposition to the action. Unless elected in
accordance with the foregoing, directors must be elected at the annual meeting
of shareholders by a plurality of the votes cast at the election. Consequently,
if only two shareholders or shareholders' representatives attend a shareholders'
meeting (which may be called by the Board of Directors, or its designee in the
case of special shareholders' meetings), actions to be taken by the company
could potentially be approved and directors could potentially be elected by only
one shareholder. In addition, given our two-person quorum requirement and the
concentration of ownership of our shares in our directors and officers, our
directors and officers who are also shareholders have a considerable ability to
adopt actions at shareholders' meetings without requiring the votes or
attendance of other shareholders.

PAST ACTIVITIES OF THE COMPANY AND ITS AFFILIATES MAY LEAD TO FUTURE LIABILITY
FOR US.

Prior to the acquisition of Electronic Sensor Technology, L.P., we engaged in
the exploitation of mining claims, a business unrelated to Electronic Sensor
Technology's current operations. Although we are unaware of any at this time,
liabilities, if any, of the prior business may have a material adverse effect on
us. These liabilities potentially may include liabilities relating to
Bluestone's operations of its mining business, individuals that Bluestone
employed, contracts to which Bluestone was a party, any personal injury claims
against Bluestone and any other liabilities that may arise as a result of
operating a publicly-traded mining business.