Common use of DEVELOPMENT STAGE COMPANY Clause in Contracts

DEVELOPMENT STAGE COMPANY. Aura recognizes Ontro is a development stage company, that it has an accumulated deficit and a working capital deficit, has not generated any revenue from operations and is not expected to generate any revenue from operations for some time and perhaps for years, and that proposed development expenditures are expected to result in substantial and increasing losses over at least the next several years, and possibly much longer. Investment in Ontro involves substantial risk, and Aura should not acquire the Warrants unless it can afford the complete loss of its investment. Aura has taken full cognizance of and understands all of the risk factors related to the receipt of the Warrants.