Risk Factors Related to Our Business

We are at an early stage of development and have a relatively short operating history; therefore, there is a limited amount of information about us upon which you can evaluate our business and prospects for future success.

We are an early-stage company with an unproven business strategy and may never achieve commercialization of our research tools and therapeutic products or profitability.

Our research tools are new and unproven and may not allow us or our collaborators to develop successful commercial products.

The commercialization of therapeutic or other life science products developed using our research tools is subject to a variety of risks.

If we are unable to enter into or maintain strategic collaborations with third parties, we may have difficulty selling our research tools and therapeutic products and we may not generate sufficient revenue to achieve or maintain profitability.

We cannot control our collaborators allocation of research or the amount of time that our collaborators devote to developing our programs or potential products, which may have a material adverse effect on our business.

Any termination or breach by or conflict with our collaborators or licensees could harm our business.

Our collaborators could develop competing research tools and therapeutic products, reducing the available pool of potential collaborators and increasing competition, which may adversely affect our business and revenues.

We face intense competition which could result in reduced acceptance and demand for our research tools and therapeutic products.

If we lose our key personnel or are unable to attract and retain additional personnel, we may be unable to pursue collaborations or develop our own products.

Our business depends upon the success of our research tools and therapeutic products as alternatives to current research tools and therapeutic products.

We may encounter difficulties in managing our growth, which could increase our losses.

Our ability to patent our discoveries is uncertain because the interpretation of patent laws can be highly uncertain and subject to change, which may adversely affect our ability to earn revenue through the development and commercialization of our therapeutic products.

Our patent applications may not result in enforceable patent rights, which may result in our inability to earn revenues using our research tools or future therapeutic products.

If our potential therapeutic products conflict with patents that competitors, universities or others have obtained, then we may be unable to commercialize those therapeutic products, which may have an adverse effect on our revenue stream.

Issued patents may not fully protect our discoveries, and our competitors may be able to commercialize products similar to those covered by our issued patents, which may decrease our future potential revenues.

We could become involved in patent litigation which could both be costly and represent a significant diversion of management time and attention from our business strategy.

Our rights to the use of technologies licensed by third parties are not within our control, which may adversely affect our ability to develop new technologies and products.

We may be unable to protect our trade secrets, which may adversely affect our ability to earn future revenues.

We and our collaborators are subject to extensive and uncertain regulatory requirements, which could increase our operating costs or adversely affect our ability to obtain regulatory approval in a timely manner, or at all, for products that we identify, which in turn could adversely affect our financial condition and results of operations.

Third parties may file product liability lawsuits against us, and, if any suit is successful, we could face substantial liabilities that may exceed our resources.

Public perception of ethical and social issues surrounding the use of genetic information or stem cells may limit or discourage the use of our technologies, which may reduce the demand for our research tools and therapeutic products and may reduce our revenues.