Exhibit 99.2

業務與財務回顧和展望

這份由衆巢醫學提供的6-k表格報告（及其子公司，除非上下文另有說明，「我們」，「我們」，「我們」或「公司」），包含根據1933年證券法第27A條修正案和1934年證券交易法第21E條修正案的含義的前瞻性陳述。這些陳述涉及未來事件或公司的未來財務表現。公司已經嘗試通過術語（包括「預計」，「相信」，「期待」，「可以」，「繼續」，「可能」，「估計」，「打算」，「可能」，「計劃」，「潛在」，「預測」，「應該」或「將」或這些術語的否定形式或其他類似術語來識別前瞻性陳述。這些陳述僅爲預測，不確定性因素和其他因素可能導致公司的實際結果，活動水平，表現或成就與這些前瞻性陳述所暗示的或表達的任何未來結果，活動水平，表現或成就有實質不同。此6-k表格報告中的信息並非旨在預測公司未來的表現。儘管公司認爲前瞻性陳述所反映的期望是合理的，但公司不能保證未來結果，活動水平，表現或成就。公司的期望截至提交此6-k表格的日期，公司不打算在提交此6-k表格的日期之後更新任何前瞻性陳述，確認這些陳述與實際結果，除非法律要求。

概述

我們不是中國的運營公司，而是在開曼群島註冊的控股公司。作爲一家沒有自己實質經營的控股公司，我們通過我們的全資子公司北京衆巢衆信科技有限公司（「衆巢WFOE」）和在中國的一個可變利益實體—上海衆巢醫學技術有限公司（「衆巢VIE」）及其子公司（統稱「中國實體運營實體」）來進行我們絕大部分的經營。由於衆巢WFOE與衆巢VIE之間的現有VIE協議，我們能夠根據美國通用會計準則整合衆巢VIE的財務業績，但我們不持有衆巢VIE的股權。

衆巢醫學VIE及其子公司是一家基於平台的互聯網科技公司，在中國爲患有腫瘤和其他重大疾病的患者提供服務。中華人民共和國經營實體滿足患者在症狀發生、醫療諮詢、藥物處方、藥物管理和治療諮詢等環節的需求。中華人民共和國經營實體提供在線醫療信息、專業培訓和醫學教育服務給醫療專業人員，以及在腫瘤和罕見疾病專業領域提供患者管理服務、互聯網醫療服務、藥品服務，並運營面向公衆的在線信息平台。

中國經營實體在其「MDMOOC」品牌下向醫療專業人士提供醫療保健信息、教育和培訓服務，我們認爲這是中國醫療培訓和教育領域領先的消費品牌之一，證據是證券公司中信證券提供的關於在線醫療行業的研究報告。其中，中國經營實體被視爲在醫生互動和在線培訓平台方面提供醫學培訓的主要典型上市公司，並引領互聯網醫學教育行業。中國經營實體通過其「世紀陽光健康論壇」向公衆提供醫療保健教育內容，根據註冊用戶量和每日評論量，我們認爲這是中國最大的普通醫療保健知識和信息平台之一。中國經營實體通過其「衆尋」醫療系統和微信小程序「中新健康」以及「中信健康」微信小程序，爲藥品企業和非營利組織客戶提供專注於患者管理的服務。

中國境內運營實體於2012年8月開始運營，通過衆巢醫學VIE，旨在爲中國醫療專業人士提供廣泛且及時的醫療信息以及持續的學習和培訓機會。自成立以來，中國境內運營實體專注於開發信息、教育和培訓項目，以滿足中國醫療行業的需求；並發展線上平台和現場活動，以提供中國境內運營實體的信息服務、教育項目和培訓產品。

最近的發展

2024年2月29日，衆巢醫學股份有限公司進行了一次1比10的股份合併（「2024年股份合併」），其中每十（10）股面值爲0.0001美元的A類普通股合併爲一（1）股面值爲0.001美元的A類普通股，每十（10）股面值爲0.0001美元的B類普通股合併爲一（1）股面值爲0.001美元的B類普通股。在2024年股份合併的結果中發行了51,188股碎股。

2024年3月27日，由於運營考慮，衆巢醫學VIE解散了其全資子公司上海麥德姆文化傳播有限公司（「上海麥德姆」）。 上海麥德姆的解散未被視爲停止經營，因爲這不代表戰略轉變。 上海麥德姆先前提供的服務現在由衆巢醫學VIE及其其他子公司提供。

2024年10月1日，衆巢醫學股份有限公司（以下簡稱「公司」）與投資者（統稱「購買協議方」）簽訂了證券購買協議，規定公司發行及出售合計3,094,000股面值爲$0.001每股的A類普通股（以下簡稱「股份」），以註冊直接發行（以下簡稱「本次發行」）。2024年10月2日，公司完成了本次發行，並以每股$0.30的價格向投資者發行股份，使公司總共獲得$928,200的總募集款項。公司沒有保留承銷商或代銷商參與本次發行，因此不需支付任何承銷折扣或佣金。

公司根據2024年10月1日的一份補充招股說明書和2021年12月17日的招股說明書，向公衆發行股票，該招股說明書是2021年12月17日由證券交易委員會生效的F-3表格（文件編號333-256190）的一部分。

影響營運結果的關鍵因素

我們相信衆巢醫學VIE市場的主要競爭因素是行業專業知識、服務提供的廣度和深度、提供的服務質量、聲譽和業績、營銷、基礎設施的可伸縮性和價格。 衆巢醫學VIE龐大的用戶群、專業數據庫和高質量的教育內容的結合，使其成爲醫療信息、教育和培訓服務的領先提供商，以滿足醫療機構和專業人士的需求，並將繼續促進我們的增長和成功。

我們相信以下因素推動了衆巢醫學VIE的成功:

A.運營結果

下表概述了我們彙編的綜合業績摘要 各期間業績。此信息應與我們未經審計的彙編的財務 報表一起閱讀，已包含在本報告的其他地方。任何期間的營運結果未必代表我們未來的趨勢。

收入

我們通過藥品企業客戶和非營利組織的設計和製作在線醫療課程、組織線下醫學培訓服務、諮詢和學術支持服務、患者管理服務以及專利藥品銷售來產生收入。

截至2024年6月30日的六個月內，營業收入下降210萬美元，或20%，至830萬美元，相比之下，上一年同期爲1040萬美元。總體營業收入下降主要是由於專利藥品銷售減少380萬美元引起的。這些藥品於2022年下半年推出，迅速在2023年達到銷售高峰，因爲它們填補了客戶需求中的缺口。然而，2024年上半年需求趨於正常化，導致銷售額下降。這一下降部分被在線醫學培訓課程、線下教育研討會和患者管理服務的營業收入增加170萬美元抵消，這些服務作爲患者援助項目的一部分，主要是由於2023年上半年受到的與COVID-19相關的干擾的消除，以及患者援助項目的援助人數增加。

營收成本

營業成本包括爲在線醫學培訓課程和線下教育研討會以及患者援助項目中的患者管理服務而發生的直接相關成本，以及專利藥物的成本。

用於在線醫療培訓課程和脫機教育研討會以及患者輔助項目的準備的營業成本包括直接相關的在線醫療培訓課程和脫機教育研討會以及患者輔助項目的準備所產生的直接成本，包括旅行和住宿費用、研討會場地租金、視頻製作和背景製作、在線和脫機研討會提供專業服務的專家收取的專業服務費以及由編輯、設計和製作團隊的關鍵成員和患者輔助項目所產生的工資和福利支出，以及患者輔助項目的外包勞動成本。旅行和住宿費用，包括但不限於交通費用和酒店住宿費用，代表講師參加和參與脫機研討會所產生的費用。公司醫療部門產生的其他旅行費用用於視頻製作、脫機研討會的直播以及材料收集以創建在線課程。這些旅行和住宿費用在公司和客戶之間達成任何協議之前就得到了很好的預算安排。因此，這些費用在這些協議下由客戶進行充分支付。公司不會單獨向客戶報銷這些費用。

專利藥物產生的營業成本主要包括藥品採購成本。

營收成本從2023年6月30日結束的六個月內的610萬美元下降了250萬美元，或40%，至2024年6月30日結束的六個月內的360萬美元。這一減少主要是由於專利藥物成本下降了230萬美元，與銷售額下降一致，以及與我們的MDMOOC服務相關的營收成本減少了20萬美元。所提供服務的成本降低主要歸因於兩個因素：(a)所售服務組合的轉變，2024年上半年更多地銷售諮詢和學術支持服務，這些服務具有較高的利潤率；(b)運營效率和效果的提高。

銷售和市場費用

銷售和市場費用在2024年6月30日結束的六個月內下降了190萬美元，或49%，從去年同期的390萬美元下降到200萬美元。銷售和市場費用的減少主要歸因於促銷費用減少170萬美元，因爲公司打算保留營運資金，而我們正在經歷銷售下降。

一般及管理費用

截至2024年6月30日的六個月內，管理和行政費用減少了200萬美元，或43%，從去年同期的460萬美元降至260萬元。 管理和行政費用的減少主要歸因於我們在2024年加強了收款工作，壞賬費用減少了110萬美元，專業服務費減少了約50萬美元，無形資產攤銷費用減少了20萬元。

資產減值損失

在2023年6月30日結束的六個月中，資產和設備減值爲了一個需要根據當地政府部門要求拆除的不合規建築物的全面減值，因爲該建築違反了相關的當地規章制度。在2024年6月30日結束的六個月中，我們沒有發生類似的減值。

其他收入，淨額

2024年6月30日止六個月，其他收入主要包括$10萬的利息收入和$27,133的其他收入。

截至2023年6月30日的前六個月，其他收入主要包括政府補貼13萬美元以及短期投資公允價值增加59萬美元。

所得稅優惠

截至2024年6月30日，我們獲得了10萬美元的所得稅減免，而在截至2023年6月30日的六個月中，我們獲得了40萬美元的所得稅減免，這主要是因爲衆巢醫學在上海麥德姆公司的投資出現了實質性損失，因爲上海麥德姆公司解散。

淨收益（虧損）

由於上述原因，截至2024年6月30日的六個月內，我們的淨利潤爲20萬美元，而截至2023年6月30日的六個月內則爲480萬美元的淨虧損。

稅收

開曼群島

根據開曼群島當前的稅法規定，公司不需要繳納收入稅或資本利得稅。此外，在向股東支付股息時，開曼群島也不會徵收預提稅。

英屬維京群島

根據BVI現行稅法，該公司在BVI註冊的子公司不須繳納所得稅或資本利得稅。

香港

衆巢醫學集團有限公司（「衆巢HK」）註冊地在香港，根據其法定財務報表披露的應稅所得，在符合相關香港稅法的調整下，需要繳納香港利得稅。前200萬港元的應稅利潤適用稅率爲8.25%，超過200萬港元的應稅利潤將繼續適用香港公司的16.5%稅率，並自2018/2019年度開始生效。在此之前，香港公司的適用稅率爲16.5%。由於衆巢醫學集團自成立以來在香港沒有應稅利潤，因此未作出香港利潤稅的任何準備。根據香港稅法，衆巢HK對其外源性收入免徵所得稅，並且在香港匯出分紅時不需要繳納預提稅。

美國

衆巢醫學美國有限責任公司（「衆巢醫學美國」） 是在美國註冊成立的公司，適用聯邦稅率爲21%。

日本

根據日本當前的稅法規定，衆巢醫學 日本（「衆巢日本」）在日本設立的公司需繳納30%的所得稅。

中國

截至2024年6月30日，衆巢醫學VIE根據相關中華人民共和國所得稅法規對應稅務收入徵收中華人民共和國企業所得稅（「EIT」）。在中華人民共和國境內經營的公司，所得稅率爲25%。 截至2023年6月30日，衆巢醫學VIE和上海中訊北京分公司按照相關中華人民共和國所得稅法規對應稅務收入徵收25%的中華人民共和國企業所得稅。公司的其他子公司和衆巢醫學VIE位於中華人民共和國的子公司合格爲小型微型企業（「SMEs」）。

中小企業有資格享受20%的降低就業促進稅率，前300萬元應稅收入可減少75%，2023年和2024年12月31日截止的年度應稅收入剩餘部分不減少。

2018年9月，中國國家稅務總局宣佈對研發費用實行優惠稅收政策。符合條件的實體有權將175%的研發費用從收入中扣除，以達到淨營業收入。

關鍵會計估計

我們根據美國通用會計準則(U.S. GAAP)編制我們的未經審計的簡明合併基本報表。根據美國通用會計準則編制基本報表需要管理層進行涉及資產和負債金額以及財務報表日期的稅收金額和費用金額的判斷、估計和假設。我們根據我們自己的經驗、知識和對當前業務和其他情況的評估不斷評估這些判斷和估計。

我們對未來的期望是基於可獲得信息和我們認爲合理的假設，這些合在一起構成了我們判斷其他來源無法明顯看出的事項的基礎。由於估計值的使用是財務報告過程中的一個組成部分，我們的實際結果可能與這些估計值有所不同。我們的一些會計政策在應用中需要比其他更高程度的判斷。在我們重要的會計政策中，包含在我們截至2023年12月31日的綜合財務報表中的「注2-重要會計政策摘要」中，在2024年4月30日提交的20-F表格中包含的年度報告中，某些會計政策被視爲「關鍵」，因爲它們需要管理層最高程度的判斷、估計和假設，包括營業收入確認。

我們認爲會計估計是關鍵的，如果需要根據在制定該估計時高度不確定的事項做出的假設進行會計估計，並且可能會對未經審計的簡明綜合財務報表產生實質影響的不同會計估計或合理可能發生的會計估計變動。我們認爲以下會計估計涉及在編制我們的財務報表中使用的最重大判斷。

收入確認

ASC 606建立了報告有關企業向客戶提供商品或服務產生的營業收入和現金流量的性質、金額、時間和不確定性的原則。核心原則要求企業確認營業收入，以反映預期能夠獲得的對交換提供的商品或服務的考慮金額，認可的履約義務履行後。

根據ASC 606的規定，公司確認收入的時機是在公司將承諾的服務的控制權轉移給客戶時，確認的金額應該反映出公司預期通過提供這些服務而有權獲得的對價。

公司確定每項單獨的服務，或者每組基本相同且具有向客戶轉移相同模式的基本相同服務作爲履約義務。交易價格在一個合同中確定的不同履約義務之間進行分配。

營業收入確認的時間可能與向客戶開具發票的時間不同。應收賬款包括已開具發票的金額和公司在履行績效義務並擁有無條件權利收款之前確認的金額。

客戶預付款項包括在期末與未完成履約義務有關的收款。

公司在與客戶簽訂合同的成本中申請了一項實用的快捷方式，按費用發生額進行攤銷，當攤銷期將爲一年或更短時。公司在與客戶簽訂合同的過程中沒有重大的增量成本，公司預計這些成本的受益期會超過一年。

醫療培訓和教育服務

該公司設計並提供醫療培訓和教育課程，涵蓋線上和線下形式，面向醫生和衛生保健專業人士（稱之爲「培訓和教育服務」）。公司從合同中識別單一履約義務。公司在服務提供後即確認營業收入。預先從客戶收到的付款在合併資產負債表中記錄爲「預收款項客戶」。公司向客戶交付課程時，預收款項客戶被確認爲營業收入。此預付款項不可退還。在銷售後收取費用的情況下，醫療培訓和教育課程交付給客戶時確認營業收入和應收賬款。服務開始時，費用已確定且不可變更。

離線醫療培訓和教育服務課程-儘管客戶可以從每項服務承諾中受益，包括醫療課程的設計、製作和呈現，以及其他現成的資源。與客戶簽訂的合同中承諾的是整合所有這些服務承諾。公司得出結論認爲，這些服務承諾在合同期內高度依賴彼此。因此，這些服務承諾彼此之間並不獨立，公司將所有服務承諾視爲單一履約義務。在公司聘請第三方專家爲醫療課程提供呈現的情況下，公司確定內容和參與者，有能力指導這些專家爲公司提供醫療培訓服務。因此，公司主要負責履行提供醫療課程的承諾，並在確定交易價格方面擁有自主權。公司是服務提供方的負責人，並按總體基礎確認收入。

Online medical training and education services courses – the promises in the contracts with customers consist of provision of online courses and presentation of the courses online for users to access for a period of time. The performance obligation of presentation of the courses online for users for a period of time is immaterial in the context of the contract because presentation of each course incurred no significant additional cost, nor will it occupy any significant resources of the Company, except for little digital space on the Company’s server, which is inconsequential. Therefore, the Company combines all service commitments performed as a single performance obligation.

Patient management services in patient-aid projects

The Company is engaged by NFPs and pharmaceutical enterprises to assist in the operation of patient-aid projects with a purpose to facilitate qualified patients to obtain free drug treatment from NFPs. The Company is responsible to provide doctors with access to training courses or training materials in connection with the drug treatment, review the completeness of application documents from patients, and other ad-hoc works (such programs with these plug-in features are hereinafter referred as the “patient-aid projects”). The arrangements are structured as fixed price contracts. The price is determined as stated in contracts and does not include any variable consideration. The Company identifies a single performance obligation from contracts and recognizes revenue over a period of time during which the Company provides the assistance to the NFPs till the earlier of the expiration of contract period or the free drugs are completely delivered. The Company uses an input-based method to measure the progress, by reference to the cost incurred in performing the obligation.

The fees are fixed at the inception of the services and are collected either in advance or after the services are provided.

Sales of patented drugs 

Starting from the year of 2022, the Company commenced sales of patented drugs to customers. The Company identified one performance obligation in the contracts with customers, and the transaction price is fixed. No sales incentives or return of goods is allowed only if there are quality issues. The Company recognized revenues upon sales of patented drugs upon acceptance of goods by customers.

Other revenues

The Company also provides consulting services to its customers, including drafting research papers and providing other academic supports, and facilitation services for hospitals and patients through online platform.

The consulting services are accounted for as a single performance obligation and was recognized as revenue when the Company delivers services to the customers. Fees are generally collected after provision of services. The facilitation services are accounted for as a single performance obligation and was recognized as revenue when the Company completed facilitation services to the customers.

B. Liquidity and capital resources

In assessing our liquidity, we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. To date, we have financed our operations primarily through cash flows from operations, bank borrowings and equity financing.

During the six months ended June 30, 2024 and 2023, the Company generated net income of $0.2 million and net loss of $4.8 million, respectively.

As of June 30, 2024 and December 31, 2023, we had cash and cash equivalents of $6.3 million and $7.5 million, and working capital of $14.0 million and $16.0 million, respectively.

Although we consolidate the results of Zhongchao VIE and its subsidiaries, we only have access to cash balances or future earnings of Zhongchao VIE and its subsidiaries through the VIE Arrangements with our VIE.

Current foreign exchange and other regulations in the PRC may restrict our PRC entities in their ability to transfer their net assets to the Company and its subsidiaries in Cayman Islands, and Hong Kong. However, these restrictions have no impact on the ability of these PRC entities to transfer funds to us as we have no present plans to declare dividend which we plan to retain our retained earnings to continue to grow our business. In addition, these restrictions have no impact on the ability for us to meet our cash obligations as all of our current cash obligations are due within the PRC.

To utilize the proceeds we received from the IPO and over-allotment and shelf offering, we may make additional capital contributions to the PRC entities, establish new PRC entities and make capital contributions to these new PRC entities, or make loans to the PRC entities. However, most of these uses are subject to PRC regulations.

A majority of our future revenues are likely to continue to be in the form of Renminbi. Under existing PRC foreign exchange regulations, Renminbi may be converted into foreign exchange for current account items, including profit distributions, interest payments and trade-and service-related foreign exchange transactions.

We expect that a substantial majority of our future revenues will be denominated in Renminbi. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior SAFE approval as long as certain routine procedural requirements are fulfilled. Therefore, the PRC entities are allowed to pay dividends in foreign currencies to us without prior SAFE approval by following certain routine procedural requirements. However, approval from or registration with competent government authorities is required where the Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may at its discretion restrict access to foreign currencies for current account transactions in the future.

Cash Flows

The following table sets forth a summary of our cash flows for the six months ended June 30, 2024 and 2023.

Operating activities

Net cash provided by operating activities was $0.8 million for the six months ended June 30, 2024, mainly derived from (i) net income of $0.2 million for the six months adjusted for noncash items including $0.1 million changes in fair value of short-term investments, $0.1 million amortization of right of use assets and $0.1 million of bad debt expenses related to written off of accounts receivable, and (ii) net changes in our operating assets and liabilities, principally due to an increase in accounts payable of about $0.6 million due to more of promotion fees were toward the end of the six months ended June 30, 2024 and the amount payable was not due as of June 30, 2024 and a decrease in prepayments of $0.3 million as we delayed certain prepayments to reserve capital for our operations. The increase in cash was partially offset by a decrease in advance from customers of $0.3 million due to decrease in our sales and a decrease in our lease liabilities of about $0.1 million due to payments of the rents upon due.

Net cash used in operating activities was $1.9 million for the six months ended June 30, 2023, mainly derived from (i) net loss of $4.8 million for the six months adjusted for noncash writing off against accounts receivable of $1.3 million, loss of $1.5 million from disposal of one property and increase in fair value of short-term investments of $0.6 million, and (ii) net changes in our operating assets and liabilities, principally due to a) a decrease in accounts receivable of $2.01 million because our NFP customers made payments which was previously delayed by COVID-19, and b) an increase in other current assets of $0.6 million that we incurred prepayments in advertising expenses.

Investing activities

Net cash used in investing activities was $1.8 million for the six months ended June 30, 2024, which was primarily due to cash used in purchase of property and equipment of $2.1 million and net cash invested in short-term investment of approximately $0.2 million. For the six months ended June 30, 2024, we acquired a new office building in Beijing with original cost of approximately $2.1 million. For the six months ended June 30, 2024, we invested $5.4 million in short-term investments and received proceeds of about $5.2 million from redemption of short-term investments. The cash used is partially offset by the repayment of $0.3 million from loan to third-party and $0.2 million from proceeds from redemption of equity investment.

Net cash provided by investing activities was $1.94 million for the six months ended June 30, 2023, which was mainly provided by repayment of loans of $1.84 million from third parties, proceeds of $0.70 million collected from redemption of short-term investments, and repayment of loans of $0.23 million from affiliates, partially net off against investments of $0.52 million in short-term investments and loans of $0.29 million made to third parties.

Financing activities

We did not have cash flows from financing activities for the six months ended June 30, 2024 and 2023.

Holding Company Structure

Zhongchao Inc. is a holding company with no material operations of its own. We consolidate the financial results of Zhongchao VIE, the VIE, and its subsidiaries in China as primary beneficiary under the U.S. GAAP pursuant to the VIE agreements between Zhongchao WFOE and Zhongchao VIE. As a result, Zhongchao Inc.’s ability to pay dividends depends upon dividends paid by the PRC operating entities. If the existing PRC operating entities or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our wholly foreign-owned subsidiary in China, or Zhongchao WFOE, is permitted to pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our subsidiary, the VIE and its subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. In addition, our wholly foreign-owned subsidiary in China may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at its discretion, and Zhongchao VIE may allocate a portion of its after-tax profits based on PRC accounting standards to a surplus fund at their discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Our PRC subsidiary has not paid dividends and will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds.

C. Research and development, Patents and License, etc.

Research and development expenses consist primarily of salary and welfare expenses for IT department employees who work for development of the PRC operating entities’ platform and database, and software and related intellectual property expenses which was used to develop an extensive library of licensed content and medical database.

Our research and development expenses were $0.1 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively.

We will continue to commit to work on the development and maintenance in the platform and database as we intend to provide professionals and customers with Internet-based access to the PRC operating entities’ courses and education software and enhance the customer experience.

D. Trend information

Other than as disclosed elsewhere in this report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

E. Off-balance Sheet Arrangements

We have not entered into any derivative contracts that are indexed to our shares and classified as shareholders’ equity or that are not reflected in our unaudited condensed consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or that engages in leasing, hedging or research and development services with us.

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