false
--12-31
Q1
2012
2012-03-31
10-Q
0000786620
Yes
Smaller Reporting Company
CIMETRIX INC
No
No
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<!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>Organization</b> – Cimetrix Incorporated, a Nevada corporation, and its subsidiaries (Cimetrix or the Company) are primarily engaged in the development and sale of open architecture, standards-based, personal computer software for controlling machine tools, robots, electronic equipment, and communication products that allow communication between equipment on the factory floor and host systems, and semiconductor connectivity products that connect new semiconductor equipment to other equipment and to host systems.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>Basis of Presentation</b> – The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Cimetrix Japan K.K., Cimetrix Europe, Inc. and Cimetrix Data Management Solutions, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. The interim financial information of the Company as of March 31, 2012 and for the three month periods ended March 31, 2012 and 2011 is unaudited, and the balance sheet as of December 31, 2011 is derived from audited financial statements. The accompanying condensed consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform with the accounting policies disclosed in Note 1 to the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, all adjustments that are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2012 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2012. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.</p>
<!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 2 – STOCK-BASED COMPENSATION</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) Topic 718<i>. </i>Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award granted and recognized as expense over the period in which the award is expected to vest.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The stock-based compensation expense for the three-month periods ended March 31, 2012 and March 31, 2011 has been allocated to the various categories of operating costs and expenses in a manner similar to the allocation of payroll expense as follows:</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <table style="MARGIN:auto auto auto 26.2pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="138" colspan="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:103.6pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>Three Months Ended</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="138" colspan="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:103.6pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>March 31,</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"><b> </b></p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:47.1pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>2012</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"><b> </b></p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:47.1pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>2011</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Cost of revenues</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">6,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">1,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Sales and marketing</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">2,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">3,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Research and development</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">3,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">1,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">General and administrative</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">14,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">6,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Total stock-based compensation expense</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">25,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">11,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr></table> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">During the three months ended March 31, 2012, options to purchase 10,000 shares of the Company’s common stock were granted to the Company’s employees, with an exercise price of $0.19 per share.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The total stock-based compensation costs from vesting restricted stock shares in the three month periods of March 31, 2012 and 2011 was $10,000 and $5,000, respectively.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">As of March 31, 2012, the total future compensation cost related to non-vested stock-based awards not yet recognized in the Condensed Consolidated Statements of Income was $187,000, and the weighted average period over which these awards are expected to be recognized was 2.74 years.</p>
<!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 3 – EARNINGS PER SHARE</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing the net income for the period by the sum of the weighted-average number of common shares outstanding plus the weighted average common stock equivalents, which would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options and unvested restricted stock. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury method.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The following table sets forth the computation of basic and diluted earnings per common share:</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <table style="MARGIN:auto auto auto 26.25pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="138" colspan="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:103.5pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>Three Months Ended</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="138" colspan="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:103.5pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>March 31,</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"><b> </b></p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:47.05pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>2012</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"><b> </b></p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:47.05pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>2011</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Numerator:</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:47.05pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:47.05pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Net income</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">15,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">290,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Denominator:</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Basic weighted average shares outstanding</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">45,698,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">45,017,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Effect of dilutive securities:</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Stock options</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">65,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">1,201,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Unvested restricted stock</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">-</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">195,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Warrants</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">-</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">251,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Diluted weighted average shares outstanding</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">45,763,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">46,664,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Net income per share</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Basic</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">0.00</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">0.01</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Diluted</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">0.00</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">0.01</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr></table> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Potentially dilutive securities representing approximately 1,224,000 and 490,000 shares of common stock at March 31, 2012 and 2011, respectively, were not included in the computation of net income per diluted share because the options’ exercise prices were greater than the average market price of the underlying shares.</p>
<!--egx--><p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 4 – NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>Revolving Bank Line of Credit - </b>The Company and Silicon Valley Bank (the “Bank”) entered into a Loan and Security Agreement, effective as of September 27, 2011. Line of credit advances are available to the Company in accordance with a defined “Availability Amount”, based in part on qualifying accounts receivable, up to a maximum of $1 million. The line of credit bears interest at the prime rate plus 1.75%, payable monthly, and matures September 26, 2012. The line of credit is collateralized by substantially all operating assets of the Company. Interest payments are payable on the first day of each month with all principal advances payable on the maturity date of the line of credit. As of March 31, 2012, the Company had no borrowings against the line of credit.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Under the line of credit agreement, the Company is required to comply with the following financial covenants:</p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:; tab-stops:.5in">· Maintain a ratio of quick assets to current liabilities minus deferred revenue of at least: 1.50 to 1.00</p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; TEXT-AUTOSPACE:; tab-stops:.5in">· Maintain a tangible net worth equal to or greater than the sum of (i) $500,000, plus (ii) for each successive quarter, commencing as of the quarter ending December 31, 2011, 50% of net proceeds received by Company in the preceding quarter from bona-fide issuances of new equity or bridge financing which constitutes “subordinated debt”.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The line of credit agreement also contains numerous negative comments restricting certain actions by the Company without the bank’s consent, such as are typically included in similar loan agreements, including restrictions on the payment of dividends, restrictions on incurring additional debt, prohibitions restricting major corporation transactions, including a sale of the business, and a requirement that the Company retain certain key employees.</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">At March 31, 2012, the Company was in compliance with all covenants.</p>
<!--egx--><p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 5 – COMMON STOCK</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company had 505,000 and 476,000 vested restricted stock awards for which shares of common stock have not been issued as of March 31, 2012 and December 31, 2011, respectively.</p>
<!--egx--><p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 6 – RELATED PARTY TRANSACTIONS</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">During the three-months ended March 31, 2012 and 2011, the Company had the following revenues from one customer that was also a shareholder of the Company:</p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <table style="MARGIN:auto auto auto 26.2pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="138" colspan="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:103.6pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>Three Months Ended</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" rowspan="2" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="138" colspan="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:103.6pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>March 31,</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"><b> </b></p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:47.1pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>2012</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="right"><b> </b></p></td> <td width="63" colspan="2" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:47.1pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:" align="center"><b>2011</b></p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b> </b></p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">New software licenses</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">74,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">$</p></td> <td width="56" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">56,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:">Software license updates and product support</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">25,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:" align="right">24,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.5pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:white; TEXT-AUTOSPACE:"> </p></td></tr> <tr> <td width="477" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:357.9pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; TEXT-INDENT:0.25in; MARGIN:0in 0in 0pt 9pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:">Total software revenues</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">99,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right"> </p></td> <td width="6" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:4.75pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td> <td width="56" style="BORDER-BOTTOM:black 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:42.35pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:" align="right">80,000</p></td> <td width="6" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:3pt; PADDING-LEFT:0in; WIDTH:4.7pt; PADDING-RIGHT:0in; BACKGROUND:#cceeff; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; BACKGROUND:#cceeff; TEXT-AUTOSPACE:"> </p></td></tr></table> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company had accounts receivable from two customers that were also shareholders totaling $45,000 and $73,000 at March 31, 2012 and 2011, respectively<b>.</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p>
<!--egx--><p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"><b>NOTE 7 – FAIR VALUE OF FINANCIAL INSTRUMENTS</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">The Company’s financial instruments consist of cash and cash equivalents, which approximates fair value because of the immediate or short-term maturities of the financial instruments included in this category.</p>
<!--egx--><p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">Effective January 1, 2012, the Company adopted Financial Accounting Standards Board (“FASB”) accounting guidance which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income, or in two separate but consecutive statements. The guidance eliminates the option to present components of other comprehensive income as part of the statement of equity. In addition, in December 2011, the FASB issued an amendment to the accounting standard which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement. In accordance with the guidance, the Company has presented condensed statements of operations and comprehensive loss as a single continuous statement.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:">In September 2011, the FASB issued new guidance on the annual testing of goodwill for impairment. The guidance will allow companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This guidance will be effective for the Company for the year ending December 31, 2012, with early adoption permitted. The Company does not expect the adoption of this new guidance to have a material impact on it consolidated financial statements.</p>
<!--egx--><p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"><b>NOTE 9 – SUBSEQUENT EVENTS</b></p> <p style="LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:; tab-stops:500.1pt"> </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:normal; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:"> Management has evaluated events through May 15, 2012, the date the condensed consolidated financial statements were filed with the Securities and Exchanges Commission and concluded there were no subsequent events to report in the notes to the financial statements.</p>
45209256
1559000
0000786620
2012-01-01
2012-03-31
0000786620
2012-05-07
0000786620
2012-03-31
0000786620
2011-12-31
0000786620
2011-03-31
0000786620
2011-01-01
2011-03-31
0000786620
2010-12-31
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