Sample Critical Risks Application Technologies Inc

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Application Technologies Inc. Critical Risks and Risk Reduction Strategy Following the Market Analysis and evaluation of our Management Team, we have identified what our critical risks are and have developed a pro-active risk reduction strategy to be implemented in our Marketing and Operational Strategy. Our critical risks and steps to reduce our risks are as follows: Risk Factor Intellectual Property Extensive Patent Search Unique Design Features Close liaison with Patent Office to ensure patents issue Reputable and Strong Intellectual Property Law Firm Patents developed around the core technology Patented ingredients and formulations under development to be used within the pouch in specific categories Patented aspects very strong design unique and very difficult to create similar product. Several different Sub-contracted Suppliers with Large Manufacturing Capability Patent-pending Manufacturing Process We own the Tooling Insurance Provision Pro-active Steps To Reduce Risks Patent Issuing Patent Violations Competing Products entering the Market, new technologies being developed. Manufacturing Manufacturing Capability Manufacturing and Sourcing Expert on Board of Advisors Standardized size and design for initial categories Subcontracted with FDA approved facility. Diverse Designs of the Pouch FDA Approval for manufacturing facility required Product Liability Ingredients supplied in pouch All ingredients to be under existing FDA approval or monograph, or have sufficient consumer safety testing completed Comprehensive Consumer Liability Liability Insurance Death or Disability or Key Management Executives Life Insurance in Favor of the Corporation

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