Introduction

The goal of Genesis is to be a leader and innovator in the global musculoskeletal market and is pursuing an ongoing product development programme to achieve this objective. The Company utilises a variety of means to protect its intellectual property portfolio including patent applications, secrecy and trademarks as applicable with the preferred method of protection being patent coverage.

The Company's Business Model is based on an internally developed management concept called Technology Value Added ("TVA") System. The TVA System is used to develop Intellectual Capital that can be leveraged into strategic relationships with industry players to add value and enhance competitive advantage.

The TVA System

The internally developed TVA System is a disciplined management tool to focus and guide the Company's work. Without divulging all the elements of the TVA System, the methodology follows a consistent formula that seeks to establish whether and how much of the Company's resources should be applied to projects.

TVA and Accessing Market Segments

The Business Model that the Company follows is to use its TVA System applications in conjunction with strategic alliances with industry partners that have either existing marketing or sales channels in the target market segments. Through these strategic partnerships with channel partners, Genesis has a clear and established path to markets.

Genesis has targeted electroceuticals, musculoskeletal treatment clinics, orthopaedic bracing and new orthopaedic surgical procedures as the four musculoskeletal market segments that it will pursue through licensing agreements, strategic alliances or joint ventures. The Company has four strategic arrangements, one in each of its four target market segments. In this way, the Company is validating its value adding applications in the industry.

The business model gives rise for the potential that the integration of Genesis IC platform applications with the technology of channel partners within the musculoskeletal market to new or extended patent protection.