CaliPharms Inc (KGET)

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If the pellet products do not gain market acceptance by consumers, we may not generate sufficient product revenue and we may not ever become profitable. The degree of market acceptance of the pellet products will depend on a number of factors, including:



• the efficacy and potential advantages over alternative products;

• any limitations or warnings in the pellet product’s approved labeling;

• pricing;

• the willingness of the target population to try pellet products;

• the strength of marketing and distribution support and timing of market introduction.




Even if a potential pellet product displays a favorable efficacy, market acceptance of the product may not be known. Our efforts to educate the consumer about the benefits of pellet products may never be successful and, in any event, would require the expenditure of significant resources, which resources we currently do not have and may never be successful in raising. If we are not successful in building market acceptance for the pellet products, we may never generate sufficient revenue or achieve or maintain profitability.



Adverse changes or interruptions in our relationships with our one supplier could affect our business operations and reduce our revenues.



Our pellet product business is substantially dependent on our relationship with one supplier and the contractual relations, which terms could affect our access to the pellet products and inventory and reduce our potential revenues. In the event our relations with this third party supplier should fail, we do not have a third-party back-up source