Development Stage Enterprise
The Company, in prior periods, presented financial statements as a development stage enterprise. In the initial years the Company, devoted substantially all of its efforts to raising capital, planning and implementing the principal operations. The Company may continue to incur significant operating losses and to generate negative cash flow from operating activities. The Company's ability to eliminate operating losses and to generate positive cash flow from operations in the future will depend upon a variety of factors, many of which it is unable to control. However, based on current and subsequent events, primarily the acquisitions of Trimax Wireless Systems, Inc. and Lockwood Technology Corporation, management believes that the Company has established the primary business development plan.