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<SEC-DOCUMENT>0001010541-06-000018.txt : 20060316
<SEC-HEADER>0001010541-06-000018.hdr.sgml : 20060316
<ACCEPTANCE-DATETIME>20060316085216
ACCESSION NUMBER:		0001010541-06-000018
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050316
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060316
DATE AS OF CHANGE:		20060316

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HUDSON TECHNOLOGIES INC /NY
		CENTRAL INDEX KEY:			0000925528
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-MACHINERY, EQUIPMENT & SUPPLIES [5080]
		IRS NUMBER:				133641539
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13412
		FILM NUMBER:		06690046

	BUSINESS ADDRESS:	
		STREET 1:		275 N MIDDLETOWN RD
		CITY:			PEARL RIVER
		STATE:			NY
		ZIP:			10965
		BUSINESS PHONE:		8457356000

	MAIL ADDRESS:	
		STREET 1:		275 N MIDDLETOWN RD
		CITY:			PEARL RIVER
		STATE:			NY
		ZIP:			10965

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	REFRIGERANT RECLAMATION INDUSTRIES INC
		DATE OF NAME CHANGE:	19940617
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8_k031606.htm
<DESCRIPTION>HUDSON TECHNOLOGIES 8-K
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<B><P ALIGN="CENTER">UNITED STATES</P>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">Washington, DC 20549</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="CENTER">FORM 8-K</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="CENTER">CURRENT REPORT Pursuant</P>
<P ALIGN="CENTER">to Section 13 or 15(d) of the</P>
<P ALIGN="CENTER">Securities Exchange Act of 1934</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Date of report (Date of earliest event reported): <U>March 16, 2006&#9;</P>
<P ALIGN="CENTER">Hudson Technologies, Inc.</P>
</U><P ALIGN="CENTER">(Exact Name of Registrant as Specified in Its Charter)</P>
<U><P ALIGN="CENTER">New York</P>
</U><P ALIGN="CENTER">(State or Other Jurisdiction of Incorporation)</P>
<U><P ALIGN="CENTER">1-13412</U><B>&#9;</B><U>13-3641539</P>
</U><P ALIGN="CENTER">(Commission File Number)&#9;(IRS Employer Identification No.)</P>
<B><P ALIGN="CENTER">&nbsp;</P>
</B><U><P ALIGN="CENTER">275 North Middletown Road  Pearl River, New York<B>&#9;</B>10965</P>
</U><P ALIGN="CENTER">(Address of Principal Executive Offices)&#9;(Zip Code)</P>
<U><P ALIGN="CENTER">(845) 735-6000</P>
</U><P ALIGN="CENTER">(Registrant's Telephone Number, Including Area Code)</P>
<U><P ALIGN="CENTER">Not Applicable</P>
</U><P ALIGN="CENTER">(Former Name or Former Address, if Changed Since Last Report)</P>
<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction A.2. below):</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;<FONT FACE="Wingdings">&#111;</FONT>
&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;<FONT FACE="Wingdings">&#111;</FONT>
&#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;<FONT FACE="Wingdings">&#111;</FONT>
&#9;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&#9;<FONT FACE="Wingdings">&#111;</FONT>
&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P ALIGN="JUSTIFY"></P>
</FONT><B><P ALIGN="JUSTIFY">Item 2.02&#9;Results of Operations and Financial Condition.</P>
<P ALIGN="JUSTIFY"></P>
</B><P>On March 16, 2006 the Registrant issued a press release announcing its preliminary unaudited financial results for the fiscal quarter and year ended December 31, 2005.  </P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P>Item 9.01&#9;Financial Statements and Exhibits.</P>
</B><P>(d) Exhibits </P>
<P>Exhibit 99.1&#9;Press Release issued March 16, 2006</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">SIGNATURES</P>
</B><P ALIGN="JUSTIFY">&#9;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
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<P ALIGN = "RIGHT">HUDSON TECHNOLOGIES, INC.</P></DIR>
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<P><BR>
<BR>
Date: March 16, 2006</P>
<P ALIGN="RIGHT">&#9;By: <U>/S/ Stephen P. Mandracchia&#9;</P><DIR>
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</U><P ALIGN="RIGHT">Name: Stephen P. Mandracchia</P></DIR>

<P ALIGN="RIGHT">&#9; Title: Vice President Legal &amp; Regulatory, Secretary </P></DIR>
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<DOCUMENT>
<TYPE>EX-99
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<FILENAME>form8_k031606exhibit.htm
<DESCRIPTION>PRESS RELEASE
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<P>Exhibit 99.1</P>
<B><FONT FACE="CG Times,Times New Roman" SIZE=2><P ALIGN="CENTER"></P>
</FONT><P ALIGN="CENTER">HUDSON TECHNOLOGIES REPORTS NET INCOME OF $2.3 MILLION FOR 2005, AN INCREASE OF $2 MILLION OVER 2004</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Solid Results in Traditionally Challenging Fourth Quarter Cap a Strong 2005 </P>
</B>
<B><U><P ALIGN="CENTER">Results Highlights</P>
</B></U>

<UL>
<LI>Significant improvement over last year's same period, with a net loss for the quarter of ($151,000), or ($0.01) per common share, compared to a net loss of ($452,000), or ($0.02) per common share, for the fourth quarter 2004</LI></UL>
<DIR>

<P> </P></DIR>


<UL>
<LI>Earnings Per Share increased to $0.09 in 2005 compared to $0.00 in 2004</LI></UL>



<UL>
<LI>Company has achieved ten straight quarters of improved results over prior year's period</LI></UL>


<B><P ALIGN="JUSTIFY">PEARL RIVER, N.Y. - March 16, 2006 -</B> Hudson Technologies, Inc. (Nasdaq: HDSN), a leading refrigerant services company specializing in proprietary on-site decontamination services for large comfort and process cooling systems, today announced results for the fourth quarter and year ending December 31, 2005.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Revenues for the fourth quarter of 2005 were $2.9 million, compared to $2.87 million from last year's comparable period.  The net loss for the quarter totaled ($151,000), or ($0.01) per common share, compared to a net loss of ($452,000), or ($0.02) per common share, for last year's same period. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Revenues for the year ending December 31, 2005, totaled $19.2 million, an increase of $4.6 million, or 32 percent, compared to $14.6 million for the year ending December 31, 2004.  The increase in revenues was primarily attributable to an increase in refrigerant revenues of $5.4 million, offset by a decrease in RefrigerantSide&reg; services revenues of $746,000. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the year ending December 31, 2005, the Company reported net income totaling $2.3 million, or $0.09 per common share.  This compares to net income of $264,000 for the previous year, and after non-cash charges of $228,000 for payment-in-kind of preferred stock dividends, $0.00 per common share. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Comments by Kevin Zugibe, chairman and chief executive officer, Hudson Technologies:</P>

<P>"Despite a traditionally challenging fourth quarter, we have beaten the previous year's fourth quarter results and achieved our strongest fourth quarter results since 1995.  This marks the tenth straight quarter that Hudson has exceeded the performance of the prior year's period, further evidence of Hudson's continued operational and business improvement.</P>

<P ALIGN="JUSTIFY">"Throughout 2005, the market for certain refrigerants yielded sustained and exceptionally strong demand and higher prices, particularly in the second quarter of 2005.  These conditions helped Hudson increase its refrigerant revenues in 2005 by approximately $5.4 million over 2004's refrigerant sales.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">"We are pleased to report that Hudson has extended its reclamation contract with DuPont Fluoroproducts, the nation's leading provider of refrigerant products, through February 2008. Hudson has been providing reclamation services to DuPont and its Refrigerants Distributor Network since 1997, and with this extension, will continue providing DuPont with those services through at least February 2008. &nbsp;We believe that Hudson's leading-edge technology and capabilities enable us to provide DuPont, as well as all of our customers, with the best refrigerant reclamation services available in the industry. &nbsp;We look forward to the continuation of our relationship with this world-class company.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">"We are also pleased to report that Hudson has secured a one-year extension of its existing credit line facility with Keltic Financial Partners, LP, which was set to expire in May 2006, and at a reduced interest rate."   </P>

<B><P>Conference Call Information</P>
</B><P ALIGN="JUSTIFY">Hudson Technologies will host a conference call to discuss the fourth-quarter 2005 and year-end results and additional matters today at 10:00 a.m. Eastern.  To listen to the conference call, dial 866-296-6505.  Callers should please call at least five minutes prior to the scheduled start time and verbally give the operator the following access code: 7045414. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A replay of the call will be available for one week through March 23, 2006, and can be accessed by dialing 1-585-295-5445 and using the following access code: 91209236.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">A web stream replay of the call will be available for 30 days through April 16 at the following link: http://app.replayrecorder.com/budget?replaycode=91209236</P>

<B><P>About Hudson Technologies </P>
</B><P ALIGN="JUSTIFY">Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry.&nbsp; Hudson's proprietary RefrigerantSide&reg; Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems.&nbsp; Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide&reg; Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer's system continues to operate.&nbsp; In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets.&nbsp; For further information on Hudson, please visit the Company's web site at www.huds
ontech.com.&nbsp;</P>

<B><P>&nbsp;</P>
<P>Safe Harbor Statement under the Private Securities Litigation Act of 1995</P>
</B><P ALIGN="JUSTIFY">Statements contained herein, which are not historical facts constitute forward-looking statements, involve a number of known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, changes in the demand and price for refrigerants, including unfavorable market conditions adversely affecting the demand for, and the price of refrigerants, the company's ability to source CFC and non-CFC based refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements which become available to the company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, e
stimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing and other risks detailed in the company's periodic reports filed with the Securities and Exchange Commission. The words believe, expect, anticipate, may, plan, should and similar expressions identify forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.  </P>

<P>&nbsp;</P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=561>
<TR><TD WIDTH="50%" VALIGN="TOP">
<B><P>Investor Relations Contact:</B><BR>
Eric Anderson/David Olsen<BR>
Coltrin &amp; Associates <BR>
(212) 221-1616<BR>
hudsontech@coltrin.com<BR>
</TD>
<TD WIDTH="50%" VALIGN="TOP">
<B><P>Company Contact:</B><BR>
Brian F. Coleman, President &amp; COO<BR>
Hudson Technologies, Inc.<BR>
(845) 735-6000<BR>
bcoleman@hudsontech.com<BR>
&nbsp;</TD>
</TR>
</TABLE>
</CENTER></P>


<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<B><P ALIGN="CENTER">Hudson Technologies, Inc. and subsidiaries</P>
<P ALIGN="CENTER">Consolidated Statements of Operations</P>
</B><P ALIGN="CENTER">(Amounts in thousands, except for share and per share amounts)</P>
<FONT FACE="CG Times,Times New Roman" SIZE=2></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=696>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=3><P ALIGN="RIGHT">For the three month period</P>
<U><P ALIGN="RIGHT">ended December 31,</B></U></FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=3><P ALIGN="RIGHT">For the year ended</P>
<U><P ALIGN="RIGHT">December 31,</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="RIGHT">2005</B></U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="RIGHT">2004</B></U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="RIGHT">2005</B></U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="RIGHT">2004</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P ALIGN="CENTER">(unaudited)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Revenues</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$2,901</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$2,866</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$19,223</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$14,613</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Cost of sales</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1,884</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1,868</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">11,720</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">9,490</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Gross Profit</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1,017</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">998</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">7,503</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">5,123</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Operating expenses:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P>Selling and marketing</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">328</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">403</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,487</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">1,428</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P>General and administrative</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">606</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">791</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,809</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,462</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P>Depreciation and amortization</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">158</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">182</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">619</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">733</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP">
<B><FONT SIZE=3><P>Total operating expenses</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1,092</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">1,376</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">4,915</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">4,623</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Operating income (loss)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(75)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(378)</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">2,588</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">500</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Other income (expense):</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P>Interest expense</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(85)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(74)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(303)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(341)</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=3><P>Other income</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">9</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">9</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">105</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP">
<B><FONT SIZE=3><P>Total other income (expense)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(76)</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(74)</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(294)</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(236)</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Income (loss) before income taxes</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(151)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(452)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,294</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">264</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Income taxes</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">24</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Net income (loss)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(151)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">(452)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">2,270</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">264</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Preferred stock dividends</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">--</U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=3><P ALIGN="RIGHT">(228)</U></FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Available for common shareholders</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$  (151)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ (452)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 2,270</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$    36</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">======</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">======</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>Net income (loss) per common share - basic and diluted</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ (0.01)</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ (0.02)</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 0.09</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">$ 0.00</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>Weighted average number of shares outstanding - basic</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,748,344</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,517,594</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,590,698</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">21,388,102</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=3><P>Weighted average number of shares outstanding - diluted</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,748,344</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,517,594</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">25,734,313</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">21,417,814</FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="RIGHT">========</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

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