BUSINESS (continuation)

License Agreements

We have licensed aspects of our RECAF technology on a semi-exclusive and on a non-exclusive basis to Abbott, a worldwide leader in diagnostics, and Inverness, a global supplier of in vitro diagnostic products.

Abbott License

We have entered into a worldwide, semi-exclusive licensing agreement with Abbott to commercialize Serum-RECAF. Manual and POC RECAF test formats are also licensed on a non-exclusive basis. Thus, we may commercialize and license manual tests to as many licensees as we deem appropriate.

The diagnostic division of Abbott is one of the worldwide dominant companies in the sector.

Inverness License

We have also entered into a semi-exclusive, worldwide licensing agreement for our Serum-RECAF technology with Inverness Medial Innovations. This agreement allows Inverness to commercialize products using the Serum-RECAF technology in exchange for paying an upfront fee and periodic royalty payments. In addition, Inverness is responsible for obtaining FDA approvals, and managing manufacturing, marketing, and distribution for clinical laboratory testing. The manual and POC rapid tests, as well as other applications of RECAF, are also licensed on a non-exclusive basis. Inverness paid us a $1 million up-front fee for RECAF technology and material and assistance that would enable it to produce RECAF assays on its own.

Inverness, who manufactures among many other products the Clearblue® pregnancy test, is considered the largest company in the point-of-care (rapid tests) sector.

For additional information on our licensing agreements, please read our SEC filings.

Additional Licensing Opportunities

Under the license agreements with Abbott and Inverness we are free to grant one additional semi-exclusive license regarding Serum-RECAF and pursue unlimited licensing opportunities with respect to all other applications of our RECAF technology and test formats, including manual and POC rapid tests and veterinary applications. Further, our RECAF technology has additional applications that could be licensed, including imaging functions and therapeutic uses. Ultimately, we seek to license out specific aspects of our technology, striving to achieve a significant market share by selecting licensees that can support this goal. We believe that this licensing strategy will be the most effective way to expand our market share.