Investment in our innovation & startup accelerators(s) and our startups is deemed extremely risky. This type of investment is not suitable to inexperienced investors. This type of investment is not suitable for nest-egg savings. We are attempting technological achievements that have never been accomplished before by anyone else. We are operating with nowhere near the amount of capital and personnel resources deemed normally necessary to develop and bring to market these products. All of our agreements in all directions are subject to conditions, often financial, which may not be met. Although we attempt to ensure all information is accurate and up to date across over 10,000 pages on over 40 web sites it is highly likely there are mistakes and outdated information. By entrepreneurial inclination we accentuate the positive in our news developments and reduce attention to the negatives. Our team has failed in the past to have full commercial success with products and return on investment to investors where we thought commercial success was possible and even probable. By experience with new early stage innovations of our 30 startups we realistically can expect most to fail to reach their set goals and at best only a few of them, if any, to reach great success.
1. We are operating with far fewer funds and a smaller staff than all the competitors we know of in the fields we operate in today. We may not have sufficient capital or personnel resources to bring our products through first-in-man studies as is our goal. We have nowhere near the capital to bring any of our products all the way to market through all phases of clinical trials normally required.
2. Our patents and patent options + licenses are all subject to conditions, maintenance fees and other requirements that may not be met due to cash flow difficulties.
3. We may be sued for patent infringement by other patent holders.
4. Our strategic partnerships and research agreements are all subject to conditions and requirements which may not be met.
5. Our technologies are not proven to be either safe or effective and are all early stage in nature.
6. The disease states we are addressing, such as heart failure, have a history of failed attempts at new technologic breakthroughs.
7. A disproportionate to normal substantial portion of our capital goes to breakfasts, lunches and dinners with advisors, investigators, potential and existing investors, researchers, potential and existing employees and board members and potential strategic partners.
8. Howard J. Leonhardt has at this time complete voting majority of shares for nearly all startups in our accelerator(s) and the accelerator itself. In many cases he has special voting rights for him to maintain his control of ownership through an exit sale.
9. Howard J. Leonhardt and our entire core staff is spread thin across not only the 30 startups in our accelerator but other endeavors.
10. Most of our management team and board have other jobs other than working just for us.
11. No stem-cell-based organ-regeneration startup that we know of has become a commercial success yet.
12. The goal to fully regenerate damaged or diseased organs back to full health and function has not been accomplished by anyone ever before.
13. We may be sued for misleading investors although we attempt not do so.
14. We may be sued for injuring patents although we attempt not to do so.
15. We are entering industries with high regulatory obstacles and may not meet all those obligations to remain in compliance considering in particular our small staff and low amount of funds.
16. We generally utilize substantially less legal, accounting and regulatory outside help than most counterparts in our industry. This puts us in position of greater risk.
17. We generally purchase substantially less insurance coverage than most counterparts in our industry.
18. Our labs and research may be in violation of environmental regulations.
19. Our labs and research may be in violation of animal ethics regulations.
20. We do not have control of our manufacturing quality or continuity of supply since we work 100% with external manufacturers.
21. Competitors with more resources may be able to copy our products and bring them to market more quickly.