1098482--3/1/2007--UTEK

related topics

{product, candidate, development}

{acquisition, growth, future}

{stock, price, operating}

{stock, price, share}

{investment, property, distribution}

{tax, income, asset}

{loan, real, estate}

{property, intellectual, protect}

{personnel, key, retain}

{cost, contract, operation}

{operation, international, foreign}

{cost, regulation, environmental}

{regulation, government, change}

We may not be able to sell the securities we receive in connection with our strategic alliance agreements and technology transfers for an amount equal to the revenue we previously recognized in connection with such transactions. Our quarterly and annual results could fluctuate significantly. Our investment portfolio is highly concentrated in a limited number of portfolio companies and, as a result, our financial results are largely dependent upon the performance of these companies. Our portfolio companies are development stage companies dependent upon the successful commercialization of new technologies. Each of our portfolio companies is subject to a high degree of risk, and we may not be able to sell securities we receive in connection with our strategic alliances or technology transfers. Our portfolio companies depend upon the research and development activities of universities, medical research centers and federal research laboratories, over which neither our portfolio companies nor we have any control. Technologies acquired by our portfolio companies may become obsolete before we can sell their securities. The patents on the technologies that our portfolio companies license may infringe upon the rights of others, and patent applications that have been submitted may not be granted. Technologies that have been developed with funding from the U.S. government may have limits on their use, which could affect the value of the technology to a portfolio company. The securities we hold in our portfolio companies are subject to restriction on resale, and we may not be able to sell the securities we hold for amounts equal to their recorded value, if at all. We are dependent on sales transactions, structured as tax-free exchanges, to sell the new companies we form to acquire new technologies. A change in the Internal Revenue Code affecting tax-free exchanges could limit our ability to effectuate such transactions. The agreements we have with universities, medical research centers and federal research laboratories do not guarantee that such entities will grant licenses to us or other companies. We are dependent upon and have little or no control over the efforts of portfolio companies to successfully commercialize the acquired technologies or to retain the licenses to such technologies. Our investments in our portfolio companies may be concentrated in one or more industries, and if these industries should decline or fail to develop as expected our cash outlay in connection with our strategic alliances and technology transfers transactions will be lost. Substantially all our portfolio investments are recorded at fair value as determined in good faith by our Board of Directors, and as a result, there is uncertainty regarding the value of our portfolio investments. Our business depends on key personnel. Additional equity or debt financing may not be available to our portfolio companies, which could result in our losing our cash outlay in connection with our strategic alliance and technology transfer transactions with the portfolio company if the portfolio company fails. Changes in the laws or regulations that govern us could have a material impact on our operations. We are subject to certain risks associated with our foreign operations and investments. Our common stock may not continue to trade at a premium to our net asset value. We may issue shares of our common stock at a discount to the market price for such shares, which may put downward pressure on the market price for shares of our common stock. One of our current stockholders has significant influence over our management and affairs. We may need additional capital in the future and it may not be available on acceptable terms. Regulations governing our operation as a business development company will affect our ability to, and the way in which we, raise additional capital. Our common stock price may be volatile.

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1098482--3/1/2007--UTEK_CORP