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Our biometric applicationsare new and our business model is evolving. Because of the new and evolving nature of facial recognition technology, itis difficult to predict the size of this specialized market, the rate at which the market for our facial recognition applicationwill grow or be accepted, if at all, or whether other facial recognition technologies will render our applications less competitiveor obsolete. If the market for our biometric applications fails to develop or grows slower than anticipated, we would besignificantly and materially adversely affected. If we are unable to operateour business as contemplated by our business model or if the assumptions underlying our business model prove to be unfounded,we could fail to achieve our revenue and earnings goals within the time we have projected, or at all, which would have a detrimentaleffect on our business. As a result, the value of your investment could be significantly reduced or completely lost. Competition in thedevelopment of facial recognition is expected to become more intense.

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