To date, we have identified a number of potential acquisition candidates meeting broad preliminary selection criteria, but we have not made a firm offer to or completed a business combination with any target. We cannot assure you that we will be able to locate a target business or that we will be able to engage in a business combination with a target business on favorable or acceptable terms.

Subject to the limitation that a target entity have an operating business in the security industry and have a fair market value of at least 80% of our net assets at the time of the acquisition, as described below in more detail, we have virtually unrestricted flexibility in identifying and selecting a prospective acquisition candidate. To the extent we effect a business combination with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, we may be affected by numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. Although our management will endeavor to evaluate the risks inherent in a particular target business, we cannot assure you that we will properly ascertain or assess all significant risk factors.