Legal & General

Capital Expenditures

UltraVision has acquired over the years sufficient furniture and computers to not have any further large
capital expenditures. The equipment to build the scanners is at subcontractors who have the computer numerical control (CNC) milling machines and the computer controlled pick and place equipment. UltraVision bought significant inventory of reals of the resisters and capacitors (the sub 1c parts when purchased in a real of 10,000 parts) for approximately the next 1000 systems as a purchasing convenience. Printed circuit boards and integrated circuits which are the bulk of the costs are purchased for each batch of scanners.