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The specific risks for those companies covered by Scimitar Equity, LLC (Scimitar) may be greater than the general risks
involved with common stock. The majority of the companies covered by Scimitar are development stage companies that are not profitable,
and may not be profitable in the foreseeable future. The majority of the companies we cover rely heavily on equity financing to fund
their continuing operation. If one or more of these companies is/are unable to sell equity to fund its operations, then that/those
particular company/ies may become insolvent. The futures of these companies are reliant on approval of their drugs/diagnostics by
the FDA. Also, if clinical and regulatory approvals are granted for one of the company's products, then that does not necessarily
guarantee revenue. The companies are subject to manufacturing and regulatory risks as well. These risks could adversely affect
future earnings of each company. The shareholders of each company are reliant on the board of directors and management to
objectively manage the company in a manner that maximizes shareholder value. The board of directors and management of a
particular company may have different objectives or lack competency to reach the shareholders' goals. A misalignment of
corporate governance would put that particular company at financial risk. These companies are dependent on key employees
and are reliant on current management to run each company. If there is a sudden change of management for any number of reasons,
it could affect the future performance of the company. The ability to hire skilled workers and retain them is necessary for each
company's success. There is no guarantee that certain patents and trademarks that a particular company claims to will be upheld
in the United States or abroad. These intellectual properties, patents and trademarks may be infringed by other companies without
financial recourse to a particular company. The company/ies may also be sued by other companies or individuals for patent/trademark
infringement, clinical/manufacturing faults, or for any number of legal/contractual reasons. Development stage companies face several
competitors in the biotechnology/diagnostics/devices field that may have greater access to capital, clinical expertise, and marketing
expertise. Their competitors may have better products, manufacturing capabilities and reach FDA approval with a similar product before
these companies. Increased competition in these fields may adversely affect a particular company's stock price. Many companies covered
by Scimitar are classified as "penny stocks" and the price of these companies' stocks may move substantially on little volume. Because
each company is a penny stock, the companies are subject to increased market price volatility and risk. These companies have an
increased degree of volatility relative to the overall market. Risk-averse investors, and all other investors, should be aware of the
risks associated with these companies and read all 10-K's and 10-Q's before considering any investment. Investors are expected to be
knowledgeable and competent of these risks themselves, or otherwise, speak to their investment advisors before purchasing any securities
in the market. Scimitar does not accept any liability for whatever actions an investor takes on their own, or with the advice of their
investment advisor after reading Scimitar's research reports.
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