hereUare, Inc. (the "Company") was incorporated on February 5, 1997 in the state of Delaware. The Company focuses on development and sales of communication software solutions including web-based email and office automation bundle, on-line classified ads and a voice over internet protocol telephony product. The Company had been a wholly owned subsidiary of Pacific Systems Control Technology, Inc. ("PSCT") until February 8, 2002 when the Company completed its spin-off transaction from PSCT and became an independent entity. On March 26, 2007, the Company changed its name from PeopleNet International Corporation to hereUare, Inc.

In December 2005, the Company formed Completo Communications Corporation ("Completo"), a wholly owned subsidiary, to support voice termination services within the Company's international VoIP solutions. The operations of Completo were terminated by the end of the quarterly period ended March 31, 2006 and the VoIP termination activities were handled within the Company since then.

On September 22, 2006, the Company acquired 100% of hereUare Communications, Inc., a Delaware corporation ("hUa Communications"). hUa Communications is an operator of web-based search engine and other Internet software solutions founded in 2002. Consequently, hUa Communications' financial position, results of operations and cash flows subsequent to the acquisition are included in the accompanying audited consolidated financial statements.

In August 2007, the Company established a wholly owned subsidiary in Vietnam, hereUare Communications Company Ltd. Vietnam, in anticipation of engaging in business activities in that country.

The accompanying unaudited consolidated financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") Form 10-QSB and Item 310 of Regulation S-B, and generally accepted accounting principles for interim financial reporting.  The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods.  Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company's Annual Report for the year ended December 31, 2006 on Form 10-KSB and amendment thereof on Form 10-KSB/A.  The results of the nine months ended September 30, 2007 are not necessarily indicative of the results to be expected for the full year ending December 31, 2007.

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, hereUare Communications, Inc., hereUare Communications Company Ltd. Vietnam and Completo Communications Corporation. All material inter-company accounts have been eliminated in consolidation.

In September 2006, FASB issued SFAS 157 'Fair Value Measurements'.  This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles ("GAAP"), and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements.  However, for some entities, the application of this Statement will change current practice.  This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The management is currently evaluating the effect of this pronouncement on the consolidated financial statements.

In September 2006, FASB issued SFAS 158 'Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106, and 132(R)' This Statement improves financial reporting by requiring an employer to recognize the over funded or under funded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization. This Statement also improves financial reporting by requiring an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions. An employer with publicly traded equity securities is required to initially recognize the funded status of a defined benefit postretirement plan and to provide the required disclosures as of the end of the fiscal year ending after December 15, 2006. An employer without publicly traded equity securities is required to recognize the funded status of a defined benefit postretirement plan and to provide the required disclosures as of the end of the fiscal year ending after June 15, 2007. However, an employer without publicly traded equity securities is required to disclose the following information in the notes to financial statements for a fiscal year ending after December 15, 2006, but before June 16, 2007, unless it has applied the recognition provisions of this Statement in preparing those financial statements:

The requirement to measure plan assets and benefit obligations as of the date of the employer's fiscal year-end statement of financial position is effective for fiscal years ending after December 15, 2008. The management is currently evaluating the effect of this pronouncement on the consolidated financial statements.

In February 2007, FASB issued FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. FAS 159 is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted subject to specific requirements outlined in the new Statement. Therefore, calendar-year companies may be able to adopt FAS 159 for their first quarter 2007 financial statements.

The new Statement allows entities to choose, at specified election dates, to measure eligible financial assets and liabilities at fair value that are not otherwise required to be measured at fair value. If a company elects the fair value option for an eligible item, changes in that item's fair value in subsequent reporting periods must be recognized in current earnings. FAS 159 also establishes presentation and disclosure requirements designed to draw comparison between entities that elect different measurement attributes for similar assets and liabilities.

Certain comparative amounts have been reclassified to conform to the nine month periods ended September 30, 2007 and 2006.

Earnings per share is calculated in accordance with the Statement of Financial Accounting Standards No. 128 (SFAS No. 128), "Earnings per share".  Basic net income per share is based upon the weighted average number of common shares outstanding. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised.  Dilution is computed by applying the treasury stock method.  Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Inventories are stated at the lower of cost or market. The Company regularly reviews inventories and, when required, will record a provision for excess and obsolete inventory based on factors that may impact the realizable value of inventory including, but not limited to, technological changes, market demand, regulatory requirements and significant changes in the Company's cost structure. If ultimate usage varies significantly from expected usage, or other factors arise that are significantly different than those anticipated by management, inventory write-downs or increases in reserves may be required. As of September 30, 2007, the Company has inventory of VoIP phones of $13,922.

The property & equipment comprised of the following at September 30, 2007:

     Equipment                          $ 358,166
     Furniture                             55,737
                                        ----------
                                          413,903
     Less accumulated depreciation       (185,993)
                                        ----------
                                        $ 227,910
                                        ==========

Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets. Depreciation expense was $47,475 and $14,011 for the three month periods ended September 30, 2007 and 2006, respectively. Depreciation expense was $102,994 and $34,590 for the nine month periods ended September 30, 2007 and 2006, respectively.

Intangible assets comprised of the following at September 30, 2007:

Domain name                        $  32,321
Software products                    474,368
                                   ----------
                                     506,689
Less accumulated amortization       (140,325)
                                   ----------
                                   $ 366,364
                                   ==========

Amortization expense was $31,272 and $16,812 for the three month periods ended September 30, 2007 and 2006, respectively. Amortization expense was $99,686 and $23,215 for the nine month periods ended September 30, 2007 and 2006, respectively.

Amortization expenses of intangible assets over the next three years are as follows:

     2008:     $167,364
     2009:     $127,204
     2010:     $ 26,673

Prepaid expenses comprised of the following at September 30, 2007:

     Office rent in Vietnam                $  92,400
     Furniture for Vietnam office             13,229
     Web design in Vietnam                    57,285
     IT equipment in Vietnam                   4,064
     Other prepaid expenses                   33,595
                                           ----------
                                           $ 200,573
                                           ==========

As of September 30, 2007, the Company has advances totaling $194,000 made to two non-related parties for developing software for the Company.

In November 2005, the Company has made an investment of $1,000,000 in cash in an entity that is engaged in the internet search engine business. The Company evaluated the investment and determined that the investment is not impaired as of September 30, 2007. The investment represents approximately 10.5% of that entity.

Deposits comprised of the following at September 30, 2007:

     Rent deposit - Santa Clara            $  41,650
     Rent deposit - Los Angeles                2,645
     Rent deposit - Vietnam                   10,000
     Attorney retainer deposit                50,000
                                           ----------
                                           $ 104,295
                                           ==========

Accounts payable and accrued expenses comprised of the following at September 30, 2007:

     Accounts payable                      $ 109,926
     Accrued payroll and commission           31,486
     Accrued litigation                       72,000
     Accrued professional fees                 8,500
     Accrued interest                          6,400
     Other accruals                            6,254
     Other liabilities                       298,274
                                           ----------
                                           $ 532,840
                                           ==========

Other liabilities are liabilities of the prior parent company incurred prior to the spin off of PeopleNet International Corporation in 2001. The prior parent company ceased its operations in 2003, and the Company has been carrying these liabilities, which are due on demand, on its books since then. The creditors of the prior parent company have not contacted the Company to demand payment.

As a result of litigation against its prior parent corporation, Pacific Systems Control Technology ("PSCT"), PSCT and its subsidiaries, including the Company, entered into a global settlement and mutual release of all claims with a former PSCT employee, on February 11, 2003. Under the agreement, PSCT and the other former parties to the litigation, including the Company, agreed to pay to the former employee a total sum of $100,000 plus interest at the rate of 10% per year, payable in installments at the rate of $3,000 per month. As of December 31, 2004, the outstanding balance under the settlement agreement was $72,000. The Company accrued the $72,000 on its financial statements as of December 31, 2004 in the event PSCT is unable to fulfill its obligations under the settlement agreement. The balance of the accrued litigation is $72,000 as of September 30, 2007.

On February 16, 2005, the Company entered into a 3-year lease agreement with CarrAmerica Techmart which expires on March 1, 2008. Monthly payment according to this lease agreement amounts to $10,604. From March 1, 2007 to February 29, 2008 the payment pursuant to this lease agreement is $11,249.57 per month.

On June 8, 2006, the Company entered into a 5-year lease agreement with CarrAmerica Techmart which expires on June 15, 2011. Rent expense pursuant to this lease agreement is as following:

On August 1, 2007, the Company entered into a lease for 530 square meters of office space in Vietnam with Nguyen Van Tan and Vo Thi Ngoc Lan which expires on August 1, 2012. The lease commences on August 1, 2007 and rent expense is fixed at $4,200 per month. The Company prepaid the rent under this lease for 24 months through July 31, 2009. The total prepaid rent amounted to $92,400 as of September 30, 2007.

On September 22, 2006, the Company acquired hereUare Communications, Inc., issuing 15,985,500 Company common shares to retire an equal number of hereUare common shares. hereUare was a privately-held operator of web-based search engine and other Internet software solutions founded in 2002. Certain officers, directors, and major equity holders of the Company also were officers, directors or major equity holders of hereUare. Benedict Van, the Company's Chairman of the Board and CEO, and a member of the Company's board of directors, was the CEO and sole director of hereUare. Mr. Van and his affiliated company owned approximately 55.6% of the outstanding hereUare common stock and therefore received 55.6% of the Company's stock being issued in connection with the acquisition. Mr. Van and his affiliated companies owned approximately 47.3% of the outstanding capital stock of the Company immediately prior to the acquisition and, after the acquisition, Mr. Van and his affiliated companies owned approximately 51.3% of the outstanding stock of the resulting company. In addition, Anthony K. Chan, a director of the Company and its CFO, was the CFO of hereUare. The allocation of the purchase price was based on historical cost basis rather than fair market value since Mr. Van, who is the Company's Chairman of the Board and CEO was at the time also the sole director and majority shareholder of hereUare Communications, Inc. The excess of the purchase price over the historical cost basis of the net assets acquired has been shown as a deemed dividend.

The purchase price allocation is as follows:

     Cash                                 $   474,851
     Prepaid expenses                          34,251
     Property, plant & equipment               33,326
     Intangible asset                           4,368
     Investment                             1,000,000
     Deposit                                    1,994
                                          ------------
             Total assets                   1,548,791

   Less:
     Accounts payable and accruals             30,360
     Due to related parties                   357,230
                                          ------------
           Total liabilities                  387,590

     Total acquisition cost               $ 1,161,201

   Cost
     Total investment                     $31,971,000
     Total acquisition cost                 1,161,201
                                          ------------
           Deemed dividend                $30,809,799

During the three-month period ended September 30, 2007, the Company received advances from a related company in the aggregate amount of $54,670. The officer and majority stockholder of the related company is also an officer and the largest beneficial stockholder of the Company. The amount is unsecured, interest free and due on demand.

During the three-month period ended September 30, 2007, the Company advanced $5,419 in travel expenses to an officer of the Company. The amount is unsecured, interest free and due on demand.

During the three-month period ended September 30, 2007, the Company advanced an amount of $3,300 to a related company. The officer and majority stockholder of the related company is also an officer and the largest beneficial stockholder of the Company. The amount is unsecured, interest free and due on demand.

In January 2007, the Company received $12,000 from subscription receivable for shares that were issued during the year ended December 31, 2006.

During the quarterly period ended March 31, 2007, the Company issued 133,520 shares of common stock for cash amounting to $801,104 and 8,334 shares for subscriptions receivable amounting to $50,000.  The Company did not have any issuance of common stock during the quarter ended March 31, 2006.

During the quarterly period ended June 30, 2007, the Company received $25,000 from subscription receivable for shares that were issued in the previous quarter, and also issued 9,167 shares of common stock against advances for shares to be issued.

During the quarterly period ended June 30, 2007, the Company issued 127,674 shares of common stock for cash amounting to $766,030 and issued 20,000 shares of common stock for services. The Company did not have any issuance of common stock during the quarter ended June 30, 2006.

During the quarterly period ended September 30, 2007, the Company issued 55,385 shares of common stock for cash amounting to $332,800 and $8,000 was classified to subscription receivable as a result of an investor's check that was returned for insufficient funds.  In July 2007, the Company issued 25,335 shares of common stock for $124,002 of cash already received in June 2007. During the quarter ended September 30, 2006, the Company issued 517,250 shares of common stock for cash amounting to $1,034,500 and 15,985,500 shares of common stock in connection with the acquisition of hereUare Communications. 

Options

Between April and May 2002, the Company issued a total of 6,680,620 stock options with exercise prices ranging from $0.08 to $0.12 per share and with gradual vesting arrangements. The Company valued these options at a total of approximately $4.5 million. In January 2006, the Board of Directors approved the extension of expiration of the remaining unexercised 4,139,999 options. Such options would have otherwise expired in May 2006 and the approval extended the expiration date for another 3 years to 2009. Expense of $8,152,695 due to the extension of those options is recorded in the year ended December 31, 2006.

On February 21, 2005, the Company granted 350,000 options exercisable at $2 per share to one Director. 175,000 options vested on May 6, 2005; 25,000 options vested on June 30, 2005 and then 15,000 options vest per quarter thereafter. The options expire on December 31, 2007.

On February 13, 2006, the Company granted 250,000 options exercisable at $2 per share to one Director. 125,000 options vested immediately; 25,000 options shall vest on each of June 30 and December 31 of 2006 and 2007; and the last 25,000 options shall vest on February 13, 2008. The options expire on February 12, 2011.

On February 22, 2006, the Company granted 700,000 options exercisable at $2 per share to one employee. 175,000 options vested immediately; 10,937.50 options shall vest monthly thereafter over the following 48 months. The employee was terminated on August 30, 2006 and all 700,000 options expired on September 30, 2006.

On March 30, 2006, the Company granted 250,000 options exercisable at $2 per share to one Director. 125,000 options vested immediately; 25,000 options shall vest on each of June 30 and December 31 of 2006 and 2007; and the last 25,000 options shall vest on March 30, 2008. The options expire on March 29, 2011.

On May 5, 2006, the Company issued a total of 1,493,000 options to 9 employees and 1 consultant of the Company. The options have an exercise price of $2 per share and they expire in 5 years. These options vest over 4 years per the schedule of 25% after 1 year of service and monthly thereafter over the next 36 months at the rate of 2.083%. One of the employees, who was granted 600,000 options, was terminated on August 15, 2006 and all of the 600,000 options expired on September 15, 2006.

Between November 20 and 29, 2006, the Company issued a total of 420,000 options with exercise prices ranging from $5.10 to $6.00 per share to 5 consultants of the Company, and these options expire in 5 years.  320,000 of these options vested immediately and 100,000 options vest over four years per the schedule of 25% after one year of service and monthly thereafter over the next 36 months at the rate of 2.083%.

On February 1, 2007, the Company issued a total of 287,000 options to 5 employees and 1 consultant of the Company. The options have an exercise price of $6 per share and they expire in 5 years. These options vest over 4 years per the schedule of 25% after 1 year of service and monthly thereafter over the next 36 months at the rate of 2.083%.

The Company did not grant any options during the quarter ended June 30, 2007.  A total of 7,001 options were exercised in June 2007 at the exercise price of $2 per share.  The Company received cash of $14,002 in total for the exercise in June 2007 and issued 7,001 shares in July 2007.

Between August 13 and September 4, 2007, the Company issued a total of 345,000 options to 6 employees and a total of 165,000 options to 3 consultants. These options have an exercise price of $6 per share, an expiration in 5 years, and the standard 4-year vesting schedule of 25% after the first year and the remainder monthly thereafter over the next 36 months. 

On August 13, 2007, the Company issued a total of 144,000 options to 3 independent directors of the Board for their services on the Board, including on the audit and compensation committees of the Board. These options have an exercise price of $6 per share, an expiration in 5 years, and a vesting schedule of 1/36th per month beginning on July 1, 2007.

The following summary presents the total of the incentive and non-statutory options under the Company's stock option plans granted, exercised, expired and outstanding at September 30, 2007:

                                                Weighted
                                                Average     Aggregate
                                                Exercise    Intrinsic
                                  Under Plan     Price        Value
                                 ------------   --------   -----------
  Balance, December 31, 2005       7,060,620      $0.19    $ 6,037,346
    Granted                        3,113,000       2.45
    Lapsed                        (3,995,621)      0.84
    Exercised                            -          -
                                 ------------   --------   -----------
  Balance, December 31, 2006       6,177,999      $0.91    $31,446,014
    Granted                          941,000       6.00
    Lapsed                           (42,999)      2.00
    Exercised                         (7,001)      2.00
                                 ------------   --------   -----------
  Balance, September 30, 2007      7,068,999      $1.58    $31,244,976
                                 ============   ========   ===========

The following summary presents the number of options outstanding and exercisable, together with their weighted average exercise prices, and the remaining contractual live of the Company's outstanding stock options at September 30, 2007:

                           Options
                          Outstanding                 Options Exercisable
                           Weighted                 -----------------------
                            Average      Weighted                  Weighted
                           Remaining     Average                   Average
              Number      Contractual    Exercise      Number      Exercise
            Outstanding      Life         Price      Exercisable    Price

  Options    7,068,999    2.39 years      $1.58       5,678,561     $0.78

Prior to January1, 2006, the Company measured stock compensation expense using the intrinsic value method of accounting in accordance with Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations (APB No. 25).

The company adopted SFAS No. 123-R effective January 1, 2006 using the modified prospective method. Stock compensation expense recognized in the three month period ended March 31, 2007 is based on awards expected to vest, and there were no estimated forfeitures. SFAS No. 123-R requires forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates.

Methods of estimating fair value

Under both SFAS No. 123-R and under the fair value method of accounting under SFAS No. 123 (i.e., SFAS No. 123 Pro Forma), the fair value of stock options is determined using the Black-Scholes model.

Significant assumptions used to estimate fair value

The fair value of options granted in the three month period ended September 30, 2007 was estimated at grant date using a Black-Scholes option pricing model and the volatility was based on the average of the volatilities of two other companies in the same industry, since the Company's stock is not traded on any public market.

The following assumptions were used to calculate the fair value of the 165,000 options granted to three consultants, 144,000 options granted to three independent directors of the Board, and 215,000 options granted to three employees, on August 13, 2007:

     Risk-free interest rate                         4.64%
     Exercisable price                               $6.00
     Weighted average expected life of the options   5.00 years
     Expected volatility                             28.29%
     Expected dividend yield                         0

The following assumptions were used to calculate the fair value of the 30,000 options granted to one employee, on August 21, 2007:

     Risk-free interest rate                         4.25%
     Exercisable price                               $6.00
     Weighted average expected life of the options   5.00 years
     Expected volatility                             29.23%
     Expected dividend yield                         0

The following assumptions were used to calculate the fair value of the 30,000 options granted to one employee, on August 28, 2007:

     Risk-free interest rate                         4.25%
     Exercisable price                               $6.00
     Weighted average expected life of the options   5.00 years
     Expected volatility                             30.24%
     Expected dividend yield                         0

The following assumptions were used to calculate the fair value of the 70,000 options granted to one employee, on September 4, 2007:

     Risk-free interest rate                         4.25%
     Exercisable price                               $6.00
     Weighted average expected life of the options   5.00 years
     Expected volatility                             28.24%
     Expected dividend yield                         0

The fair market value of the shares was taken as the sales price of the Company's shares to investors immediately prior to the grant of options.

Under SFAS No. 123-R, the company's expected volatility assumption is based on the historical volatility of the Company's stock. The expected life assumption is primarily based on historical exercise patterns and employee post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

Warrants

In a settlement with three shareholders in December 2006, the Company granted a three-year warrant to purchase 750,000 shares of the Company's stock at $6 per share. The non-cash expense of the warrant, calculated by a Black-Scholes model, in the amount of $1,238,303 was recorded in the Company's financial statements for the year ended December 31, 2006.

Significant assumptions used to estimate fair value

The fair value of warrants granted in 2006 was estimated at grant date using a Black-Scholes option pricing model with the following weighted average assumptions: risk free interest rate of 4.70%; dividend yield of 0%; expected weighted average life of 3 years; and volatility based on an average of the volatilities of two other companies in the same industry, since the Company's stock is not traded on any public market.

The following summary presents the warrants granted, exercised, expired and outstanding at September 30, 2007:

                                              Weighted
                                              Average     Aggregate
                                              Exercise    Intrinsic
                                Outstanding    Price        Value
                                -----------   --------   -----------
  Balance, December 31, 2005           -        $ -      $     -
                                -----------   --------   -----------
    Granted                        750,000      $6.00          -
    Exercised                          -          -            -
                                -----------   --------   -----------
  Balance, December 31, 2006       750,000      $6.00    $     -
                                -----------   --------   -----------
    Granted                            -          -            -
    Exercised                          -          -            -
                                -----------   --------   -----------
  Balance, September 30, 2007      750,000      $6.00    $     -
                                ===========   ========   ===========

The following summary presents the weighted average exercise prices, number of warrants outstanding and exercisable, and the remaining contractual lives of the Company's warrants at September 30, 2007:

                           Warrants
                          Outstanding                Warrants Exercisable
                           Weighted                 ----------------------
                            Average      Weighted                 Weighted
                           Remaining     Average                  Average
              Number      Contractual    Exercise     Number      Exercise 
            Outstanding      Life         Price     Exercisable    Price

  Warrants     750,000    2.23 years      $6.00       750,000      $6.00

The Company classifies as subscription receivable, amounts of funds that either have not been received or else have been received but not deposited in financial institutions in connection with subscriptions for the issuance of shares. The subscription receivables balance as of September 30, 2007 was $33,000.

The Company's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has accumulated deficit of $67,356,145 at September 30, 2007. The Company incurred a net loss of $2,346,711 and $10,034,043 for the nine month periods ended September 30, 2007 and 2006, respectively.

In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management's plans and the ongoing operations of the Company are expected to require additional working capital in the next twelve months. The Company is beginning to market its software and communication products and is expected to generate revenues in future periods but also expects its operations to use substantial amounts of cash, especially in the near-term. The Company has conducted financing activities during the first fiscal quarter and currently plans to raise more monies in this financing during the upcoming quarter in order to fund its operations. However, there can be no assurance that the Company will generate material revenue from its products and/or will be able to raise additional monies in the ongoing financing, and if so on attractive terms.