APO Financing

“Future Financing” is the next primary financing round of the Company after the APO date, where the Company issues new securities (equity or convertible instruments) to one or more strategic or financial investors, excluding the current Investor named in the APO.

These financing options include

• The issuance of additional stock in a secondary offering

• An exercise of warrants, where stockholders have the right to purchase additional shares in a company at predetermined prices. When many shareholders with warrants exercise their option to purchase additional shares, the company receives an infusion of capital.

In addition, the now-publicly held company obtains the benefits of public trading of its securities:

• Increased liquidity of company stock

• Higher company valuation due to a higher share price

• Greater access to capital markets

• Ability to acquire other companies through stock transactions

• Ability to use stock incentive plans to attract and retain employees