Ann: Fabrication Agreement with Earth Mountain, page-446

Looks to me like the long expected bear market is upon us and will take out the speculative segment of the market first before going to work on overpriced operating companies. This could get brutal. Where does that leave AKP? Ground breaking technology, but no revenues and little cash. It's that last bit, cash, or lack thereof that concerns me. Hard to raise $ in this environment unless at a very deep discount Silver lining is Earth Mountains statement: Helen Du, EM's CEO said: "We are excited to be a part of Audio Pixels' international ambitions to transition sound reproduction technologies into the digital era. We hope to expand our relationship in AKP beyond this fabrication and commercialization agreement to include promotion, distribution and support for the products throughout greater China". My reading of Earth Mountain's announcements is that almost from the beginning, they were setting themselves up to partner with AKP, that the Sequoia Seed Capital funding was to advance that strategy and to "capture" (my wording) the opportunity AKP's technology offers, at least in China. To the extent that AKP's chips are sold elsewhere, EM will also capture the margin on those sales. That being the case, I expect that EM will appear on the share register when the next financing round is completed. Meanwhile, the bear will hand out a bloody good mauling. In the interim, in my opinion, AKP is a hold with a buy at lower prices, if you have the stomach and liquidity to do so.