Governance

The Directors recognise the importance of sound corporate governance and intend that the Company will continue to comply with the main provisions of the QCA Guidelines for AIM Companies in so far as they are appropriate given the Company's size and stage of development. Accordingly, the Company has established an audit committee and a remuneration committee, with formally delegated duties and responsibilities.

The Company is in the process of appointing another non-executive to the Board. The audit committee is chaired by Nick Clarke and will comprise the additional non-executive director once the appointment has been made. It will be responsible for ensuring that the financial performance, position and prospects of the Company are properly monitored and reported on and for meeting the auditors and reviewing their reports relating to accounts and internal controls.

The remuneration committee is chaired by Nick Clarke and will comprise the additional non-executive director once the appointment has been made. It will review the performance of executive directors, set their remuneration and payment of bonuses and consider the future allocation of share options to directors and employees.