GENERAL DEVELOPMENT OF BUSINESS

PASW, Inc., ( "PASW" , the "Company" , "we" and "our" ), was incorporated in California in November 1992 as a developer and licensor of Internet and Web related software and software development tools. Our operations are conducted principally from an office in the San Francisco Bay Area of Northern California. We completed an initial public offering of 950,000 units consisting of one share of common stock and one warrant on July 29, 1999. An additional 142,500 units representing the underwriter’s over allotment was sold on September 13, 1999.

We have historically developed and...