SwissINSO Holding Inc. (fka SWHN)

[MinnieM]

Liquidity and Capital Resources from 10k filed 5.17.10

As of March 31, 2010, we had a working capital surplus of $2,748,282 as compared with a working capital deficit at December 31, 2009 of $418,585. During the past twelve (12) months, we have incurred significant operating expenses, and we expect to continue to incur additional significant operating expenses for manufacturing, research and development, marketing, sales channel development, general and administrative expenses and debt payments during the next twelve
(12) months, contingent upon raising capital.

During the quarter ended March 31, 2010, we repaid a $500,000 short-term loan which we received in September 2009 to meet the working capital needs of SwissINSO. We expect to repay the remaining $250,000 in the foreseeable future. We also sold $4,135,000 of our convertible notes and warrants in a private placement during the quarter ended March 31, 2010. The private placement is ongoing. In addition, we have a commitment from a local Swiss bank to provide us with a credit facility equal to one-half of the funds raised in the private placement up to a maximum of CHF 5,000,000.

We do not have any other available credit, bank financing or other external sources of liquidity and will need to obtain substantial additional capital in order to develop SwissINSO's business operations, effectuate its business plan and become profitable. In order to obtain such capital, we will need to sell additional notes and warrants in the private placement and/or borrow additional funds from lenders. There can be no assurance that we will be successful in obtaining such additional funding. If we are not successful in raising sufficient capital, this would have a material adverse effect on our business, results of operations, liquidity and financial condition.