JMAR Technologies, Inc. is an innovator in the development of laser-based technology for nano-scale imaging, chemical and biological analysis, and fabrication. The Company is leveraging more than a decade of laser and photonics research to develop a portfolio of products with commercial applications in rapidly growing industries, while continuing to carry out research and development for the U.S. Government. Management believes, that with the financing provided by the $7,500,000 Laurus Note (see Note 8 -Line of Credit and Notes Payable) it has, subject to periodic reviews with Laurus, adequate resources to fund its operations through September 30, 2008. The Company will require drawdowns under the Note to continue the development of some of its emerging new products and for working capital requirements until this time. There are no assurances that funds will be available under the Note, due to Laurus' requirement to approve every drawdown. Depending on market conditions and other considerations, we intend to continue to pursue opportunities to raise additional funds in the future. Management believes, but cannot assure, that the Company will be able to raise those additional funds through equity or other financings to fund future operations. This belief is derived from the Company's historical access to equity and debt markets.