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<SEC-DOCUMENT>0001181431-05-026021.txt : 20050505
<SEC-HEADER>0001181431-05-026021.hdr.sgml : 20050505
<ACCEPTANCE-DATETIME>20050505141223
ACCESSION NUMBER:		0001181431-05-026021
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050505
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050505
DATE AS OF CHANGE:		20050505

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIGHTPATH TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000889971
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				860708398
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27548
		FILM NUMBER:		05802854

	BUSINESS ADDRESS:	
		STREET 1:		2603 CHALLENGER TECH CT
		STREET 2:		SUITE 100
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32826
		BUSINESS PHONE:		4073824003
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd77757.htm
<DESCRIPTION>PRESS RELEASE OF MAY 5, 2005 FINANCIAL RESULTS FOR THE FISCAL 3RD Q 2005
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
</head>
<body Bgcolor="white">

<hr Size="4" Noshade Color="#000000" Align="left">

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>UNITED STATES </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Washington D.C., 20549 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Current Report </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Date Of Report (Date Of Earliest Event Reported):&nbsp;&nbsp;05/05/2005 </b></font></div>




<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>LIGHTPATH TECHNOLOGIES INC </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Exact Name of Registrant as Specified in its Charter)</b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Commission File Number:&nbsp;&nbsp;000-27548</b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">
<tr>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>DE</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>86-0708398</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(State or Other Jurisdiction of</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(I.R.S. Employer</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Incorporation or Organization)</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Identification No.)</b></font>
</div>
</td>
</tr>

</table></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>2603 Challenger Tech Ct. , Suite 100, Orlando, FL 32826</b></font></div>


<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Address of Principal Executive Offices, Including Zip Code)</b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>407-382-4003 </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Registrant&#146;s Telephone Number, Including Area Code) </b></font>
</div>



<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b> </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Former name or former address, if changed since last report) </b></font>
</div>


<div><font Size="1">&nbsp;</font>
</div>




<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>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:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act(17CFR240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17CFR240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17CFR240.13e-4(c))
</b>

</font>
</div>





<div><font Size="1">&nbsp;</font>
</div>

<hr Size="4" Noshade Color="#000000" Align="left">


<p Style='page-break-before:always'>
<p Align="center"><font Size="2">
Items to be Included in this Report</b>
</font>





<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
The Registrant issued a Press Release on May 5, 2005, reporting financial results for the fiscal third quarter ended March 31, 2005, and announcing an audio webcast to be held on May 5, 2005. A copy of the Press Release is attached as Exhibit 99.1 to this Report.</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Press Release on May 5, 2005 (furnished herewith).</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<hr  Size="3" Color="#cceeff" Width="100%" Align="center">
<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Signature(s) </b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
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. </font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000"></font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	LIGHTPATH TECHNOLOGIES INC</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: May 05, 2005.</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;Robert Burrows</font>
	</div>
	<hr Noshade Align="left" Color="#000000">
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Robert Burrows</font>
	</div>
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Chief Financial Officer</font>
	</div>
</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





<p Style='page-break-before:always'>
<hr  Size="3" Color="#cceeff" Width="100%" Align="center">

<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Exhibit Index </b></font>
</div>

<div><font Size="2">&nbsp;</font></div>

<div Align="center">
<table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Align="left">
	<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
	<b>Exhibit&nbsp;No.</b></font>
	</div>
		<hr Size="2" Noshade Width="48" Color="#000000">
	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	<b>Description</b></font>
	</div>
	<hr Size="2" Noshade Width="73" Align="left" Color="#000000">
	</td>
</tr>




<tr>
	<td Valign="top" Align="left">
	<div Align="top"><font Face="times New Roman" Size="1" Color="#000000">
	EX-99.1</font>
	</div>

	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	Press Release on May 5, 2005, reporting financial results for the fiscal third quarter ended March 31, 2005, and announcing an audio webcast to be held on May 5, 2005.</font>
	</div>
		</td>
</tr>





</div></table>



</body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd77757_5658.htm
<DESCRIPTION>PRESS RELEASE ON MAY 5, 2005, REPORTING FINANCIAL RESULTS FOR THE FISCAL THIRD QUARTER ENDED MARCH 31, 2005, AND ANNOUNCING AN AUDIO WEBCAST TO BE HELD ON MAY 5, 2005.
<TEXT>



<HTML>


<HEAD>








<TITLE>LightPath Technologies, Inc</TITLE>


</HEAD>


<BODY>





<B><FONT SIZE=2><P ALIGN="CENTER">LightPath Technologies, Inc. Announces </P>


<P ALIGN="CENTER">Third Quarter Fiscal 2005 Financial Results </P>


</B></FONT><P>&nbsp;</P>


<B><FONT SIZE=2><P ALIGN="CENTER">For Immediate Release </P>


</B></FONT><P>&nbsp;</P>


<I><FONT SIZE=2><P ALIGN="JUSTIFY">(May 5, 2005)</I> ORLANDO, FL LightPath Technologies, Inc. (NASDAQ: LPTH), a manufacturer and integrator of families of precision molded aspheric optics, GRADIUM</FONT><FONT SIZE=1>(R)</FONT><FONT SIZE=2> glass products, high-performance fiber-optic collimators and isolators, today announced financial results for its fiscal 2005 third quarter and nine months ended March 31, 2005. Compared to the same periods in the prior year, sales increased by 57% to $3.07 million for the third fiscal quarter, and by 68% to $9.33 million for the nine-month period. This sales growth coupled with operating expense reductions are the primary drivers of reduced cash use and reduced reported losses. Our Disclosure Backlog, as defined in our Annual Report on Form 10-K for June 30, 2004, was $2.49 million at March 31, 2005, compared to $2.81million at the same date in the prior year and $2.98 million at December 31, 2004. </P>


</FONT><P ALIGN="JUSTIFY"></P>


<B><FONT SIZE=2><P ALIGN="CENTER">Financial Quick Reference </P>


</B></FONT><P>&nbsp;</P>


<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 WIDTH=577>


<TR><TD WIDTH="62%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="6%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="5%" VALIGN="MIDDLE">&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">&nbsp;</TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="BOTTOM">


<B><FONT SIZE=1><P>(In Millions, except for per share data)</P>


</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=6>


<B><FONT SIZE=1><P ALIGN="CENTER">Three&nbsp;Months&nbsp;Ended<BR>


March 31,</B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=6>


<B><FONT SIZE=1><P ALIGN="CENTER">Nine&nbsp;Months&nbsp;Ended<BR>


March 31,</B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="BOTTOM">


<B><FONT SIZE=1><P>Unaudited</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2>


<B><FONT SIZE=1><P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2>


<B><FONT SIZE=1><P ALIGN="CENTER">2004</B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2>


<B><FONT SIZE=1><P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2>


<B><FONT SIZE=1><P ALIGN="CENTER">2004</B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P>Total revenues&#9;</DIR>


</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">3.07</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">1.95</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">9.33</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">5.56</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P>Total costs and expenses</DIR>


</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">3.38</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">3.02</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">12.11</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">9.99</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P>Net loss</DIR>


</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(0.31</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(1.07</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(2.78</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(4.43</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P>Net loss per share</DIR>


</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(0.09</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(0.37</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(0.85</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(1.64</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


</TR>


<TR><TD WIDTH="62%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P>Increase\(Decrease) in cash and cash equivalents</DIR>


</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(0.38</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">1.00</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(1.05</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(0.42</FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<FONT SIZE=2><P>)</FONT></TD>


</TR>


</TABLE>


</CENTER></P>








<P ALIGN="CENTER"><CENTER><TABLE BORDER CELLSPACING=1 WIDTH=577>


<TR><TD WIDTH="57%" VALIGN="BOTTOM">


<B><FONT SIZE=1><P>(In Millions)</B></FONT></TD>


<TD WIDTH="4%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2>


<B><FONT SIZE=1><P ALIGN="CENTER">March&nbsp;31,</P>


<P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<B><FONT SIZE=1><P>&nbsp;&nbsp;</B></FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2>


<B><FONT SIZE=1><P ALIGN="CENTER">December 31,</P>


<P ALIGN="CENTER">2004</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<B><FONT SIZE=1><P>&nbsp;&nbsp;</B></FONT></TD>


<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3>


<B><FONT SIZE=1><P ALIGN="CENTER">June&nbsp;30,</P>


<P ALIGN="CENTER">2004</B></FONT></TD>


</TR>


<TR><TD WIDTH="57%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P>Cash and cash equivalents</DIR>


</FONT></TD>


<TD WIDTH="4%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="9%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">1.48</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="6%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">1.85</FONT></TD>


<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2>


<FONT SIZE=1><P>&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="4%" VALIGN="BOTTOM">


<FONT SIZE=2><P>$</FONT></TD>


<TD WIDTH="5%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">2.53</FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<P>&nbsp;</P>





<B><FONT SIZE=2><P ALIGN="JUSTIFY">Detailed comments about the third quarter of fiscal 2005:</B> For the quarter ended March 31, 2005, the Company reported total revenues of $3.07 million compared to $1.95 million for the same quarter of the previous fiscal year, an increase of 57%. Net loss for the quarter was $0.31 million, or $0.09 per share. Our gross margin percentage in the third quarter is higher, at 26%, by nine points than in the comparable quarter in the prior year when it was about 17%. While we are seeing improved margins from better utilization of our manufacturing plant and from higher volumes of product sales, our efforts to improve margins remain a principal focus. SG&amp;A expenses were reduced from $1.39 million last year to $0.83 million in this most recent quarter, largely due to reductions in amortization, compensation, legal and insurance costs. New product development expenses were essentially level at $0.22 million compared to last year's third quarter when it was $0.24 million, a res
ult of slightly higher personnel costs offset by lower consumable material costs. A notable improvement in our statement of operations in the current quarter includes amortization expense for intangible assets of only $38 thousand compared to approximately $466 thousand in the same quarter of the prior year, as a result of a portion of identifiable intangibles becoming fully amortized in prior quarters. Remaining amortization amounts from our intangible assets that are subject to periodic amortization will be relatively modest at current quarter levels or lower. </P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<B><FONT SIZE=2><P ALIGN="JUSTIFY">Detailed comments about the nine months of fiscal 2005:</B> For the nine months ended March 31, 2005, the Company reported total revenues of $9.33 million compared to $5.56 million for the same nine months of the previous fiscal year, an increase of 68%. Net loss for the nine months of fiscal 2005 was $2.78 million, or $0.85 per share, an improvement over the loss in last year's comparable first nine months of $4.43 million or $1.64 per share. Gross margin increased $0.82 million and the percent was slightly higher increasing to 21% from 20% in the comparable prior period. As previously reported in our second</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">quarter press release, we incurred a materials scrap adjustment in the nine months of this fiscal year of $265,000 and a $69,000 charge in the comparable period of last year for an intellectual property dispute. While we have seen notable margin improvement in the past two and one-half years, through improving volumes that have increased plant utilization rates, we still have the challenge of improving our process yields to improve margins while sustaining our recent unit growth levels. SG&amp;A expenses were reduced from $4.10 million last year to $3.29 million in this most recent nine months due to reductions in compensation, insurance, investor relations and legal costs. New Product Development expenses increased from $0.70 million last year to $0.75 million in the nine months of 2005. As our product volumes have increased we have found it necessary to add staff to our optical engineering group to better serve our higher volumes of business, which often require engineering input to the 
sales effort. Lastly, the Company settled a lawsuit for $70,000 in the nine months of 2005 that is included in the overall loss for the period. </P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<B><FONT SIZE=2><P ALIGN="JUSTIFY">Cash Status:</B> For the quarter ended March 31, 2005, net cash declined by $0.38 million vs. an increase of $1.00 million in the same period of the prior year. Cash was bolstered in the prior year by both the sale of common stock (netting $1.89 million and a settlement of litigation, netting $0.61 million). As we have noted in prior reports, higher sales levels have generally reduced our use of cash from period to period and reduced our loss levels. Management's objective is to stay on a course of increasing sales with a continuing focus on managing costs to reach our goal of becoming self-sustaining by achieving cash flow breakeven from operations. </P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<B><FONT SIZE=2><P ALIGN="JUSTIFY">Comments:</B> Ken Brizel, President and CEO of LightPath, stated &quot;Our sales have remained at record levels since our restructuring began. We feel that we are making good progress on our sales line; our sales of $9.3 million for the nine months of fiscal 2005 already exceed the $8.3 million recorded for the twelve months of fiscal 2004. Our sales backlog was lower than we wanted due to continued weakness in our remaining communication market customers, which overshadowed the continued growth in industrial, medical and defense. This highlights the importance of our ongoing market diversification initiatives. In late March, at the SPIE Defense and Security trade show in Orlando,<B><I> </B></I>we announced our ability to mold long-wavelength infrared (LWIR) aspheric optics. This new product line called the Black Diamond TM enables high performance, cost-effective LWIR molded aspheric lenses. This reduces the number of lenses required for typical thermal imaging systems. Th
ese LWIR lenses are used in a variety of markets including, defense, industrial, commercial and automotive applications.&quot;</P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<FONT SIZE=2><P ALIGN="JUSTIFY">Additional information concerning the Company and its products can be found at the Company's website at www.lightpath.com. </P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<B><U><FONT SIZE=2><P ALIGN="JUSTIFY">Webcast Details:</U> </P>


</B></FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<FONT SIZE=2><P ALIGN="JUSTIFY">LightPath will hold an audio webcast at 3:00 p.m. EST on May 5, 2005 to discuss details regarding the Company's performance for the quarter and nine months of fiscal year 2005. The session may be accessed at http://www.lightpath.com. A transcript archive of the webcast will be available for viewing or download on our website. </P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<B><U><FONT SIZE=2><P ALIGN="JUSTIFY">About LightPath:</U> </P>


</B></FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<FONT SIZE=2><P ALIGN="JUSTIFY">LightPath manufactures optical products including precision molded aspheric optics, GRADIUM</FONT><SUP><FONT SIZE=1> </SUP></FONT><FONT SIZE=2>(R) glass products, proprietary collimator assemblies, laser components utilizing proprietary automation technology, higher-level assemblies and packing solutions. LightPath has a strong patent portfolio that has been granted or licensed to us in these fields. LightPath common stock trades on the Nasdaq National Market under the stock symbol LPTH. </P>


</FONT><P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=578>


<TR><TD WIDTH="17%" VALIGN="TOP"><DIR>





<FONT SIZE=2><P ALIGN="JUSTIFY">Contacts:</DIR>


</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P ALIGN="JUSTIFY">&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="80%" VALIGN="BOTTOM"><DIR>





<FONT SIZE=2><P ALIGN="JUSTIFY">Rob Burrows, CFO</DIR>


</FONT></TD>


</TR>


<TR><TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=1><P ALIGN="JUSTIFY">&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P ALIGN="JUSTIFY">&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="80%" VALIGN="BOTTOM"><DIR>





<FONT SIZE=2><P ALIGN="JUSTIFY">LightPath Technologies, Inc. (407) 382-4003</DIR>


</FONT></TD>


</TR>


<TR><TD WIDTH="17%" VALIGN="TOP">


<FONT SIZE=1><P ALIGN="JUSTIFY">&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">


<FONT SIZE=1><P ALIGN="JUSTIFY">&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="80%" VALIGN="BOTTOM"><DIR>





<FONT SIZE=2><P ALIGN="JUSTIFY">Internet: www.lightpath.com</DIR>


</FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<FONT SIZE=2><P ALIGN="JUSTIFY">This news release includes statements, that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise</P>


<B><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<P>&nbsp;</P>


</FONT><FONT FACE="Arial"><P>&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P></B></FONT>


<TABLE BORDER CELLSPACING=1 WIDTH=578>


<TR><TD VALIGN="BOTTOM" COLSPAN=10 HEIGHT=19>


<B><FONT SIZE=3><P ALIGN="CENTER">LIGHTPATH TECHNOLOGIES, INC.</B></FONT></TD>


</TR>


<TR><TD VALIGN="BOTTOM" COLSPAN=10 HEIGHT=17>


<B><FONT SIZE=3><P ALIGN="CENTER">Condensed Consolidated Balance Sheets</B></FONT></TD>


</TR>


<TR><TD VALIGN="BOTTOM" COLSPAN=10 HEIGHT=15>


<B><FONT SIZE=3><P ALIGN="CENTER">(unaudited)</B></FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=23><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>


<TD WIDTH="52%" VALIGN="TOP" HEIGHT=23><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=23><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=23>


<B><FONT SIZE=2><P ALIGN="CENTER">March 31,</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=23>


<B><FONT SIZE=2><P ALIGN="CENTER">June 30,</B></FONT></TD>


</TR>


<TR><TD WIDTH="55%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">Assets</B></FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>


</TR>


<TR><TD WIDTH="55%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>


<FONT SIZE=2><P>Current assets:</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Cash and cash equivalents</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>             1,477,737 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>             2,531,029 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Trade accounts receivable, net of allowance of $118,932</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>


<FONT SIZE=2><P>and $165,387, respectively</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>             1,775,106 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>             1,797,113 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Inventories</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>             1,727,431 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>             1,457,027 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Prepaid expenses and other assets</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                152,852 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                500,328 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="52%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Total current assets</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             5,133,126 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             6,285,497 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=26>


<FONT SIZE=2><P>Property and equipment - net </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             1,580,893 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             2,343,783 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Intangible assets - net </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                363,225 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                905,896 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Other assets</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                  65,215 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                145,913 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="52%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>       Total assets</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             7,142,459 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             9,681,089 </FONT></TD>


</TR>


<TR><TD WIDTH="55%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=21>


<B><FONT SIZE=2><P ALIGN="CENTER">Liabilities and Stockholders' Equity</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


</TR>


<TR><TD WIDTH="55%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>


<FONT SIZE=2><P>Current liabilities: </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Accounts payable </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                893,331 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P ALIGN="RIGHT"> $ </FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                656,263 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Accrued liabilities </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                300,339 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                428,896 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Accrued payroll and benefits</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                278,421 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                565,935 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5>


<FONT SIZE=2><P>Restructuring reserve</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="20%" VALIGN="BOTTOM">


<FONT SIZE=2><P>                          -   </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="20%" VALIGN="BOTTOM">


<FONT SIZE=2><P>                          -   </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Accrued severance and exit costs</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                    3,404 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                  41,276 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Capital lease obligation, current portion</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                  20,654 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>                          -   </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="52%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Total current liabilities</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             1,496,149 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             1,692,370 </FONT></TD>


</TR>


<TR><TD WIDTH="55%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=23>


<FONT SIZE=2><P>Capital lease obligation, excluding current portion</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=23>


<FONT SIZE=2><P>                  48,887 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=23>


<FONT SIZE=2><P>                          -   </FONT></TD>


</TR>


<TR><TD WIDTH="55%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=25>


<FONT SIZE=2><P>Stockholders' equity:</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>


<FONT SIZE=2><P>Common stock: Class&nbsp;A, $.01 par value, voting; </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" ROWSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>                  33,374 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" ROWSPAN=4 HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" ROWSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>                  32,226 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>34,500,000 shares authorized; 3,337,363 and 3,222,549</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>shares issued and outstanding at March 31, 2005 and</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>June 30, 2004, respectively</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>Additional paid-in capital</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>         191,426,528 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>         190,986,547 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>Accumulated deficit</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>        (185,612,307)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>        (182,831,197)</FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>


<FONT SIZE=2><P>Unearned compensation</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>               (250,172)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=18>


<FONT SIZE=2><P>               (198,857)</FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="52%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Total stockholders' equity</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             5,597,424 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             7,988,719 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="52%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Total liabilities and stockholders' equity</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             7,142,459 </FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT"> $ </FONT></TD>


<TD WIDTH="20%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>             9,681,089 </FONT></TD>


</TR>


<TR><TD VALIGN="BOTTOM" COLSPAN=10 HEIGHT=26><P></P></TD>


</TR>


</TABLE>





<B><FONT FACE="Arial"><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P></B></FONT>


<TABLE BORDER CELLSPACING=1 WIDTH=728>


<TR><TD VALIGN="BOTTOM" COLSPAN=13 HEIGHT=19>


<B><FONT SIZE=3><P ALIGN="CENTER">LIGHTPATH TECHNOLOGIES, INC.</B></FONT></TD>


</TR>


<TR><TD VALIGN="BOTTOM" COLSPAN=13 HEIGHT=19>


<B><FONT SIZE=3><P ALIGN="CENTER">Condensed Consolidated Statement of Operations</B></FONT></TD>


</TR>


<TR><TD VALIGN="BOTTOM" COLSPAN=13 HEIGHT=19>


<B><FONT SIZE=3><P ALIGN="CENTER">(unaudited)</B></FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="32%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=52>


<B><FONT SIZE=2><P ALIGN="CENTER">Three months ended</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=52><P></P></TD>


<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=52>


<B><FONT SIZE=2><P ALIGN="CENTER">Nine months ended</B></FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="32%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">March 31,</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">March 31,</B></FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="32%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=26>


<FONT SIZE=2><P>Product sales, net</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<B><FONT SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">3,065,310 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">1,951,118 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<B><FONT SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">9,329,972 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">5,558,896 </FONT></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=17>


<FONT SIZE=2><P>Cost of sales </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">2,268,520 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">1,624,689 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">7,392,693 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">4,443,232 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="32%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Gross margin</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">796,790 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">326,429 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">1,937,279 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">1,115,664 </FONT></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=26>


<FONT SIZE=2><P>Operating expenses:</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=17>


<FONT SIZE=2><P>Selling, general and administrative </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">830,275 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">1,386,697 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">3,290,159 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">4,097,510 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=17>


<FONT SIZE=2><P>New product development</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">224,633 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">239,919 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">753,860 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">704,786 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=17>


<FONT SIZE=2><P>Amortization of intangibles</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">38,217 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">465,647 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">542,672 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">1,479,022 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>


<FONT SIZE=2><P>Loss (gain) on sales of assets</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">13,042 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">(6,450)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">(10,499)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">(115,106)</FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=17>


<FONT SIZE=2><P>Reorganization and relocation expense </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">1,766 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="32%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Total operating costs</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">1,106,167 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">2,085,813 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">4,576,191 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">6,167,978 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="32%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P>Operating loss</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(309,377)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(1,759,384)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(2,638,912)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(5,052,314)</FONT></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=26>


<FONT SIZE=2><P>Other income (expense)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>


<FONT SIZE=2><P>Gain (loss) on settlement of litigation</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">790,000 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">(70,000) </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>


<FONT SIZE=2><P ALIGN="RIGHT">790,000 </FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=17>


<FONT SIZE=2><P>Investment and other income (expense), net</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">3,394 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">(100,256)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">(72,198)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=17>


<FONT SIZE=2><P ALIGN="RIGHT">(166,201)</FONT></TD>


</TR>


<TR><TD WIDTH="37%" VALIGN="BOTTOM" COLSPAN=6>


<FONT SIZE=2><P>Loss before cumulative effect of accounting change</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(305,983)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(1,069,640)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(2,781,110)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">(4,428,515)</FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=4>


<FONT SIZE=2><P>Cumulative effect of accounting change</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>


<TD WIDTH="15%" VALIGN="BOTTOM">


<FONT SIZE=2><P ALIGN="RIGHT">--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26>


<FONT SIZE=2><P>Net loss</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<B><FONT SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(305,983)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(1,069,640)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<B><FONT SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(2,781,110)</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(4,428,515)</FONT></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=26>


<FONT SIZE=2><P>Loss per share (basic and diluted) </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<B><FONT SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(0.09) </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(0.37) </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<B><FONT SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(0.85) </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">(1.64) </FONT></TD>


</TR>


<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=26>


<FONT SIZE=2><P>Number of shares used in per share calculation</FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">3,311,984 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">2,880,458 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">3,287,587 </FONT></TD>


<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>


<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>


<FONT SIZE=2><P ALIGN="RIGHT">2,700,855 </FONT></TD>


</TR>


</TABLE>





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