If ECD Ovonics initiates an offering under the shelf registration statement in the future, it expects to use any net proceeds from the sale of the securities to fund its ongoing business operations and other general corporate purposes, which may include investments required to expand manufacturing capabilities. The actual use of proceeds of any such future offering will be described in a prospectus supplement to the shelf registration statement, which will be filed with the SEC at the time of such offering.

ECD Ovonics separately filed a registration statement with the SEC relating to the resale of up to 1,934,564 shares of common stock, of which 649,021 have been issued, 885,543 shares are issuable under existing Stock Option Agreements with certain senior officers and 400,000 shares are issuable upon the exercise of currently exercisable warrants. Under this resale registration statement, the selling stockholders listed in the prospectus are permitted, but are not obligated, to sell, from time to time, some or all of their respective shares covered by the prospectus.