IMPORTANT FACTORS REGARDING FORWARD-LOOKING STATEMENTS
The following factors, among others, could cause actual results to differ materially from those contained in
forward-looking statements made in this Report and presented elsewhere by management from time to time.
WE HAVE HAD A HISTORY OF LOSSES AND MAY INCUR FUTURE LOSSES.
We were incorporated in 1990 and began our operations in 1991. We have funded our operations principally
from funds raised in each of the initial public offering of our common stock in February 1994, the offering of our
common stock in February 1996, a private placement of our common stock in October 1996, and recent private
placements of our common stock in December 1999 and January 2000.licensing arrangements; research
contracts and supply contracts; funds received under research and development grants from the Government of
Israel; and sales of Survivor Lights. We incurred significant operating losses for the years ended December 31,
1996, 1997, 1998 and 1999, and expect to continue to incur significant operating losses in 2000. These losses
may increase as we expand our research and development activities and establish production facilities, and these
losses may fluctuate from quarter to quarter. There can be no assurance that we will ever achieve profitability or
that our business will continue.
WE NEED SIGNIFICANT AMOUNTS OF CAPITAL TO OPERATE AND GROW OUR
We require substantial funds to conduct the necessary research, development and testing of our products; to
establish commercial scale manufacturing facilities; and to market our products. In order to satisfy existing orders
of batteries in commercial quantities, we need to implement our automated production line and, in the future, may
need to upgrade or expand our automated production line to satisfy future orders. We plan to expand both sales
and production activities, which will require additional funding. We continue to seek additional funding, including
through the issuance of e