The pouch can easily be made opaque for storing light sensitive materials such as RetinolTm. The pouch is flat so that it can easily be printed with advertising, instructions, or bar codes, or inserted as a promotional sample in mailings or magazines. Most of year 2000 involves product and manufacturing development. Self-sustaining operation with positive cash flow should occur in Q4 2000. The plan and financials shown reflect only the initial round of products introduced in a focused set of core markets during the first two years of operation.
Substantial opportunity exists to introduce additional products in the following years.
Management's experience indicates that during the years shown only the early adopter markets will have been penetrated and that mass consumer adoption of products utilizing the Appli-K technology will occur in the fifth or sixth year after they are introduced. Possible exit strategies for the investor include a leveraged buyout by management, the sale of technology rights for certain non-core markets, the sale of the entire company to a major consumer or medical packaging firm, or taking the company public. Application Technologies Inc. Table of Contents Appendices 1. All information herein is confidential and belongs to Application Technologies Inc.