Xtract One Technologies Inc (XTRAF)

[236T568]

Bad news for the PTOTF products

Straight from PTOTF:




http://www.otcmarkets.com/ajax/showFinancialReportById.pdf?id=175271

Successfully developing a prototype of CRM-1 into a marketable device may take several years and
significant financial resources, and the Company may not achieve those objectives.

In order to commercialize any product the Company will need to conduct trials, which may not succeed,
and to obtain regulatory approvals which it may fail to do. CMR-1 may need to comply with regulatory
compliance requirements prescribed for users of Walk-Through Metal Detectors (“WTMDs”) although this
isn’t certain presently. There are a number of standards set for commercial users of WTMDs. Like several
other electronic devices, WTMDs must meet certain environmental standards, Federal Communications
Commission (“FCC”) compatibility regulations, and electrical safety requirements. Furthermore, any
detection equipment that is deployed for use at airports must comply with guidelines prescribed by the
Transportation Security Administration (“TSA”), Federal Aviation Administration (“FAA”), and related
international standards, regulations, and test certifications.

The Company does not know and is unable to predict what type and how many trials the FCC, TSA and
FAA will require the Company to conduct before granting approval for it to market its products. The
development programs may not lead to a commercial product, either because failure to demonstrate that
product candidates are safe and effective in trials and cannot obtain necessary approvals from the FCC,
TSA, FAA and/or similar foreign regulatory agencies or because of inadequate financial or other resources
to advance product candidates through the trial process for successful commercialization.