SKYE INTERNATIONAL INC (SKYIQ)

[MWM]

From today's 10Q

Management’s Plans


The Company has expended considerable efforts in working with its contract manufacturer in order to begin the production of its new line of products. The Company expects that the first units will be produced in 2007 with sales and delivery to also commence during such period. After commencing production, the Company expects that it may take up to one year for the production design and processes to stabilize. The Company has continued development efforts on its patented Paradigm™ technology. The Company is currently working closely with a critical supplier to jointly complete the engineering and commercialization process of this technology. The Company has developed a sales and distribution network relying on manufacturer’s representatives to sell the Company’s products through wholesale distribution.


The Company currently funds all its operations from loans from the Company’s officers and directors. Additionally, the Company is negotiating with several broker-dealers with a view to completing further private placements to fund the business strategy, but to date the Company has not yet concluded any such arrangement. While not yet achieved to date, the Company’s business strategy anticipates that it will need to raise in excess of $2 million over the next 12 month period in order to fully execute its business plan. Management believes that, in order to properly exploit the introduction of its products, it will be necessary to be positioned not only as a quality supplier of products, but also able to supply a sufficient volume of product to meet wholesale demand.