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<SEC-DOCUMENT>0001144204-10-049615.txt : 20100916
<SEC-HEADER>0001144204-10-049615.hdr.sgml : 20100916
<ACCEPTANCE-DATETIME>20100916100908
ACCESSION NUMBER:		0001144204-10-049615
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100916
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100916
DATE AS OF CHANGE:		20100916

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:		101075066

	BUSINESS ADDRESS:	
		STREET 1:		2603 CHALLENGER TECH CT
		STREET 2:		SUITE 100
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32826
		BUSINESS PHONE:		4073824003
</SEC-HEADER>
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<TYPE>8-K
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Condition</font></font></div>
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on September 16, 2010</font> announcing the results for the fourth fiscal
quarter and year ended June 30, 2010. <font style="DISPLAY: inline; FONT-SIZE: 10pt">A copy of the Press Release is attached
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to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this Report to be signed in its behalf by the
undersigned, thereunto duly authorized.</font></div>
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                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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                  <td valign="top" width="37%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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      Dorothy M. Cipolla</font></div>
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      </font></td>
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      </font></td>
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Index</font></div>
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<p style="text-align:center"><b>LightPath Technologies Announces Fourth Quarter and Fiscal 2010 Financial Results</b></p>
<br /><br /><p style="text-align:center">Reports Positive Net Income on Increased Revenues and Gross Margin Improvements in the Fourth Quarter </p></div><div style="width:100%;margin-left:10pt;"><div style="margin:0;margin-top:16pt;"><p>ORLANDO, Fla., Sept. 16 /PRNewswire-FirstCall/ -- LightPath Technologies, Inc. (Nasdaq: LPTH) (the &#34;Company&#34;, &#34;LightPath&#34;, or &#34;we&#34;), a global manufacturer, distributor and integrator of patented optical components and high-level assemblies, announced today its financial results for the fourth quarter and fiscal year ended June 30, 2010. Actual results were in line with the Company&#39;s preliminary results issued on August 25, 2010. Full details are available in the Company&#39;s Annual Report on Form 10-K filed today with the SEC at www.sec.gov.</p><p><b>Highlights:</b></p><ul type="disc"><li>Net income for the fourth quarter of fiscal 2010 was approximately $92,000 compared to a loss of approximately $318,000 for the fourth quarter of fiscal 2009.</l
i><li>Revenue for the fourth quarter of fiscal 2010 was $2.8 million compared to $1.6 million for the fourth quarter of fiscal 2009.</li><li>Backlog scheduled to ship within the next 12 months was $2.9 million as of June 30, 2010, an increase of $600,000 from June 30, 2009. </li><li>Gross margin was 51% for the fourth quarter of fiscal 2010 as compared to 33% for the fourth quarter of fiscal 2009.</li><li>EBITDA for the fourth quarter of fiscal 2010 improved to income of $488,000 compared to a loss of $21,000 in the fourth quarter of fiscal 2009. </li><li>Cash on hand as of June 30, 2010 was $1.5 million as compared to $580,000 on June 30, 2009. </li><li>Unit shipment volume in precision molded optics was up 292% in the fourth quarter of fiscal 2010 compared to the same period last year.</li></ul>
<br /><p>Jim Gaynor, President and Chief Executive Officer of LightPath, commented, &#34;I am pleased to report LightPath has continued its trend of positive net income in the fourth quarter of fiscal 2010. &#160;During the fourth quarter, our revenues rose 75% over the same quarter in the prior year, gross margin increased both from the third quarter to the fourth quarter and year-over-year to 51% and expenses remained relatively flat. Unit shipment volume in precision molded optics increased substantially by 292% in the fourth quarter of fiscal 2010 compared to the same period last year.&#34; </p><p>Gaynor continued, &#34;One measure the Company uses to measure performance is EBITDA. &#160;EBITDA has improved from a loss of $21,000<b></b>in the fourth quarter of fiscal 2009 to income of $488,000 in the fourth quarter of fiscal 2010, a gain of $509,000. &#160;As we continue to grow our top-line and increase our unit volume, we anticipate better fixed cost utilization. A greater percentage of our revenues wi
ll drop to the bottom-line, delivering gross margin, EBITDA and net income improvements going forward.&#34; </p><p>&#34;While the U.S. optics market showed signs of an economic rebound in fiscal 2010, Asia represents a significant new market for future growth. &#160;Our Shanghai-based facility has taken over 95% of our total production and has enabled us to make the transition into low-cost, high-volume production. While we continue to implement this new business strategy, we anticipate production levels to ramp up significantly at our Shanghai facility. Minimal capital expenditure would be required for future expansion, providing us the ability to meet growing demand for high-volume, low-cost lenses used in laser systems, laser tools, biomedical instrumentation, and telecommunications equipment, primarily produced by Original Equipment Manufacturers based in Asia,&#34; Gaynor added.</p><p>He concluded, &#34;Overall, given the uncertain market conditions, our outlook for the future is positive but cautious o
ver the short-term. Given the opportunities we see for LightPath in the low cost commercial markets and infrared markets, especially in Asia, we are very optimistic for our long-term business. Our efforts to penetrate high-volume, lower cost commercial markets in Asia show tremendous promise for the upcoming fiscal year. We are excited by the acceptance of the new products, such as our blue laser collimating lenses, which have shown quick market uptake and helped contribute to increased quote activity in recent weeks. We expect our upward growth trend to continue in fiscal 2011.&#34;</p><p><b>Financial Results for Three Months Ended June 30, 2010</b></p><p>Revenue for the fourth quarter of fiscal 2010 totaled $2.8 million compared to $1.6 million for the fourth quarter of fiscal 2009, an increase of 75%. The increase from the fourth quarter of fiscal 2009 was primarily attributable to higher sales volumes of precision molded optics, GRADIUM lenses and isolators. Our precision molded optics sales units were s
ignificantly higher as a result of our increased production capability and our pursuit of high volume low cost lens business. Our current cost structure has allowed us to sell product at lower prices while improving gross margins. Growth in sales going forward is expected to be derived primarily from the precision molded optics product line, particularly our low cost lenses being sold in Asia.</p><p>Our gross margin percentage in the fourth quarter of fiscal 2010 compared to the fourth quarter of fiscal 2009 increased to 51% from 33%. Total manufacturing cost of $1.4 million was approximately $310,000 higher in the fourth quarter of fiscal 2010 compared to the same period of the prior fiscal year. The manufacturing cost increase was a reflection of an increase in costs in order to support higher production and sales volumes. Unit shipment volume in precision molded optics was up 292% in the fourth fiscal quarter of 2010 compared to the same period last year. This resulted in better absorption of overhead cos
ts which in turn resulted in improved fixed cost utilization and lowers our unit cost. &#160;Direct costs, which include material, labor and services increased to 26% of revenue in the fourth quarter of fiscal 2010, as compared to 23% of revenue in the fourth quarter of fiscal 2009 due to a product mix change. Gross margins improved as a result of the cost reduction programs we have implemented, better production yields and efficiencies and improved overhead absorption with the increased volume. </p><p>During the fourth quarter of fiscal 2010, total costs and expenses increased $465,000 to $1.2 million compared to $690,000 for the same period in fiscal 2009. Expenses in the fourth quarter of last year were $370,000 lower due to non recurring events resulting in reductions to general and administrative expenses; receipt of $183,000 from our D&amp;O insurance carrier as a refund of legal expenses and receipt of $186,000 in excess cost reimbursement from the Chinese government related to the move of our manufac
turing facility in Shanghai. &#160;Included in total costs and expenses for the fourth quarter of fiscal 2010 were $937,000 in selling, general and administrative expenses. As a result, total operating income for the fourth quarter of fiscal 2010 improved to $282,000 compared to a loss of ($159,000) for the same period in fiscal 2009. </p><p>Interest expense was approximately $193,000 in the fourth quarter of fiscal 2010 as compared to $163,000 in the fourth quarter of fiscal 2009. The convertible debentures issued in August 1, 2008 accounted for approximately $193,000 of interest during the quarter ended June 30, 2010. &#160;This includes periodic interest at 8% and amortization of the related debt issuance costs and debt discount, and write off of debt issue costs, prepaid interest and debt discount for debentures converted into shares of common stock during the fourth quarter of fiscal 2010. </p><p>Net income for the fourth quarter of fiscal 2010 was $92,000 or $0.01 per basic and diluted common share, co
mpared with a net loss of ($318,000) or ($0.05) per basic and diluted per common share for the same period in fiscal 2009. &#160;This represents a $410,000 increase in net income compared to the fourth quarter of fiscal 2009. Weighted-average basic shares outstanding increased to 8,858,563 in the fourth quarter of fiscal 2010 compared to 6,691,966 in the fourth quarter in fiscal 2009 primarily due to the issuance of shares of common stock related to the private placements in the first and fourth quarter of fiscal 2010.</p><p><b>Financial Results for Year Ended June 30, 2010</b></p><p>Revenue for the fiscal year 2010 totaled $9.3 million compared to $7.5 million for fiscal year 2009, an increase of 24%. The increase from the prior fiscal year was primarily attributable to higher sales volumes for precision molded optics and GRADIUM lenses offset by lower sales for isolators and collimators. Our precision molded optics sales units were significantly higher but our average selling price was lower. This is the r
esult of our pursuit of producing high volume low cost lenses. Our current cost structure has allowed us to sell product at lower prices while improving gross margins. Growth in sales going forward is expected to be derived primarily from the precision molded optics product line, particularly our low cost lenses being sold in Asia.</p><p>Our gross margin percentage in fiscal 2010 compared to fiscal 2009 increased to 47% from 27%. Total manufacturing cost of $4.9 million was $511,000 lower in fiscal 2010 compared to the prior fiscal year. This was due to lower production costs for labor and materials. Unit shipment volume in precision molded optics is up 176% in fiscal 2010 compared to last year. This resulted in better absorption of overhead costs which in turn resulted in improved fixed cost utilization and lower our unit cost. &#160;Direct costs, which include material, labor and services were 24% of revenue in fiscal 2010, as compared to 23% in the prior year. Gross margins improved as a result of the cos
t reduction programs we implemented and better production yields and efficiencies. &#160;</p><p>During fiscal 2010, total costs and expenses decreased $398,000 to $4.2 million compared to $4.6 million for fiscal 2009. Included in total costs and expenses for fiscal 2010 were $3.3 million in selling, general and administrative expenses, which decreased $377,000 or 10% from $3.6 million in the prior fiscal year. We had a reduction of $255,000 due to lower salaries and benefits, a $29,000 reduction of Director compensation, and decrease in legal costs of $262,000. &#160;We had higher investor relations expenses of $267,000 for our new radio and television campaign during fiscal 2010. During fiscal 2009 there were two non recurring events resulting in reductions to general and administrative expenses; receipt of $183,000 from our D&amp;O insurance carrier as a refund of legal expenses and receipt of $186,000 in excess cost reimbursement from the Chinese government related to the move of our manufacturing facilit
y in Shanghai. During fiscal 2010 there were some one-time events resulting in a net reduction of approximately $331,000 in general and administrative expenses; receipts of $556,000 on our D&amp;O insurance as a refund for legal expenses, a litigation settlement, $76,000 reduction of legal expenses related to the reversal of accruals for litigation and reduction for reversal of royalty accrual of approximately $68,000.</p><p>Interest expense was approximately $728,000 for fiscal 2010 as compared to approximately $1,315,000 for fiscal 2009. Approximately $5,600 of the interest expense for fiscal 2010 is attributable to our equipment term loan and our capital equipment lease. The convertible debentures issued on August 1, 2008 accounted for approximately $722,000 and $1.3 million of interest during fiscal 2010 and 2009, respectively. This represents periodic interest of 8%, amortization and write-off of the related debt issuance costs and debt discount, for fiscal 2009 and value of common shares and warrants i
ssued as incentive to participate in the December 2008 convertible debenture placement and to induce the conversion of the debentures to shares of common stock. &#160;On December 31, 2008, 25% of the debentures were converted into shares of common stock and $304,382 of debt discount and $121,255 of debt issue costs were written-off to interest expense in the second quarter of fiscal 2009. Included in these totals are related debt discount, debt issue costs and prepaid interest for $262,500 of debentures which were converted into common stock during fiscal 2010.</p><p>Net loss for fiscal 2010 was $561,000 or $0.07 per basic and diluted common share, compared with a net loss of $3.8 million or $0.62 per basic and diluted per common share for fiscal 2009. This represents a $3.3 million decrease in net loss compared to fiscal 2009. Weighted-average shares outstanding increased to 8,139,852 in fiscal 2010 compared to 6,167,827 in fiscal 2009 primarily due to the issuance of shares of common stock related to the p
rivate placement in the first and fourth quarters of fiscal 2010.</p><p>Cash and cash equivalents totaled $1.5 million at June 30, 2010. Total current assets and total assets at June 30, 2010 were $4.8 million and $7.5 million compared to $3.3 million and $5.8 million, respectively, at June 30, 2009. Total current liabilities and total liabilities at June 30, 2010 were $1.1 million and $3.2 million compared to $2.0 million and $4.1 million, respectively, for June 30, 2009. As a result, the current ratio as of June 30, 2010 improved to 4.41 to 1 compared to 1.59 to 1 as of June 30, 2009. Total stockholders&#39; equity at June 30, 2010 totaled $4.2 million compared to $1.7 million at June 30, 2009. </p><p>As of June 30, 2010 our backlog of orders scheduled to ship in the next 12 months, was $2.9 million compared to $2.3 million as of June 30, 2009. </p><p><b>Investor Conference Call and Webcast Details:</b></p><p>LightPath will host an audio conference call and webcast on Thursday, September 16th at 4:00 p.m. 
EDT to discuss the Company&#39;s financial and operational performance for the fourth quarter of fiscal year 2010. </p><p><b>Conference Call Details</b></p><p>Date: Thursday, September 16, 2010</p><p>Time: 4:00 p.m. (EDT)</p><p>Dial-in Number: 1-877-407-8033</p><p>International Dial-in Number: 1-201-689-8033</p><p>It is recommended that participants dial-in approximately 5 to 10 minutes prior to the start of the 4:00 p.m. call. A transcript archive of the webcast will be available for viewing or download on the company web site shortly after the call is concluded.</p><p><b>About LightPath Technologies</b></p><p>LightPath manufactures optical products including precision molded aspheric optics, GRADIUM&#174; glass products, proprietary collimator assemblies, laser components utilizing proprietary automation technology, higher-level assemblies and packing solutions. The Company&#39;s products are used in various markets, including industrial, medical, defense, test &amp; measurement and telecommunications. Lig
htPath has a strong patent portfolio that has been granted or licensed to it in these fields. For more information visit www.lightpath.com.</p><p>The discussions of our results as presented in this release include use of non-GAAP terms &#34;EBITDA&#34; and &#34;gross margin.&#34; &#160;Gross margin is determined by deducting the cost of sales from operating revenue. Cost of sales includes manufacturing direct and indirect labor, materials, services, fixed costs for rent, utilities and depreciation, and variable overhead. Gross margin should not be considered an alternative to operating income or net income, which are determined in accordance with Generally Accepted Accounting Principles (&#34;GAAP&#34;). We believe that gross margin, although a non-GAAP financial measure is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates &#160; our cost structure and provides funds for our total costs and expenses. We use gross margin in 
measuring the performance of our business and have historically analyzed and reported gross margin information publicly. Other companies may calculate gross margin in a different manner. </p><p>EBITDA is a non-GAAP financial measure used by management, lenders and certain investors as a supplemental measure in the evaluation of some aspects of a corporation&#39;s financial position and core operating performance. Investors sometimes use EBITDA as it allows for some level of comparability of profitability trends between those businesses differing as to capital structure and capital intensity by removing the impacts of depreciation, amortization and interest expense. EBITDA also does not include changes in major working capital items such as receivables, inventory and payables, which can also indicate a significant need for, or source of, cash. Since decisions regarding capital investment and financing and changes in working capital components can have a significant impact on cash flow, EBITDA is not a good in
dicator of a business&#39;s cash flows. We use EBITDA for evaluating the relative underlying performance of the Company&#39;s core operations and for planning purposes. We calculate EBITDA by adjusting net loss to exclude net interest expense, income tax expense or benefit, depreciation and amortization, thus the term &#34;Earnings Before Interest, Taxes, Depreciation and Amortization&#34; and the acronym &#34;EBITDA.&#34;</p><p>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, including statements regarding our ability to expand our presence in certain markets, future sales growth, continuing reductions in cash usage and implementation of new distribution channels. 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><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="top" colspan="12" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">LIGHTPATH TECHNOLOGIES, INC.</font></b>
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<br /></td><td valign="top" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net Income (loss)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160;91,686</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160;(317,568)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160;(560,959)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160;(3,823,060)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Depreciation and amortization</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">203,249</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">133,483</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">700,475</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">565,988</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Interest expense</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">193,488</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">162,942</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">727,937</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,336,520</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">EBITDA</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160;488,423</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160;(21,143)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;867,453</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160;(1,920,552)</font></p></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
<br />
<br /></div><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="bottom" colspan="6" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Financial Comparison of Selected Profit and Loss Items As Reported</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">Compared to Excluded Items</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">(000&#39;s)</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Q4 2009</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Q1 2010</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Q2 2010</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Q3 2010</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Q4 2010</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;">As reported:</font></b></p>
</td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;">Revenue</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">1,590</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">1,557</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">2,226</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">2,660</font></b></p></td><td valign="b
ottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">2,807</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Gross profit</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">530</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">888</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,269</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-
space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,409</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,370</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">33%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">43%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "
><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">43%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">47%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">51%</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total costs and expenses</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">690</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "
><font style="font-family:Arial;font-size:8pt;">1,196</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">754</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,048</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,155</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net income (loss)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(31
8)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(706)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">42</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">12</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">92</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;">EBITDA</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4p
t 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">(21)</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">(382)</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">363</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">397</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">488</font></b></p></td><td style=""></td></tr><tr><td val
ign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Non recurring items **</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(274)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">132</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(298)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(36)</font></p></td><td valign="bottom" style="padding: 
0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">126</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;">Excluding non-recurring items:</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;">Revenue</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">1,590</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">1,557</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">2,226</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">2,660</font></b></p></td><td valign="b
ottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">2,807</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Gross profit</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">530</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">888</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,200</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-
space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,409</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,370</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">33%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">57%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "
><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">54%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">53%</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">49%</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total costs and expenses</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">964</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "
><font style="font-family:Arial;font-size:8pt;">1,064</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">984</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,084</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,029</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net income (loss)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(59
2)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(574)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(256)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(24)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">218</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><b><font style="font-family:Arial;font-size:8pt;">EBITDA excluding non recurring items</font></b></p></td><td vali
gn="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">(295)</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">(250)</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">65</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">437</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 12pt; "><p style="text-align: right; "><b><font style="font-family:Arial;font-size:8pt;">614</font></b></p></t
d><td style=""></td></tr><tr><td valign="bottom" colspan="6" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">** Non-recurring items include: D&amp;O insurance claim proceeds, legal expenses related to litigation settlement, business interruption payments for Shanghai plant move and other miscellaneous items.</font></p></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
<br />
<br /></div><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="bottom" colspan="9" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">LIGHTPATH TECHNOLOGIES, INC.</font></b>
<br /><font style="font-family:Arial;font-size:8pt;">Consolidated Balance Sheets</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="6" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">June 30,</font></b></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">June 30,</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Assets</font></b></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2010</font></b></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2009</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Current assets:</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cash and cash equivalents</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,464,351</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">579,949</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Trade accounts receivable, net of allowance of $22,930 and $26,131</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,804,063</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">973,634</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Inventories, net</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,137,678</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">983,278</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Other receivables</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">183,413</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Prepaid interest expense</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">167,635</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">366,219</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Prepaid expenses and other assets</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">223,908</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">173,882</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total current assets</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,797,635</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">3,260,375</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Property and equipment - net </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,344,692</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,024,571</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Intangible assets - net </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">134,001</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">166,869</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Debt costs, net</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">151,530</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">299,080</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Other assets</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">27,737</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">78,701</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total assets</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">7,455,595</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,829,596</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4
pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Liabilities and Stockholders&#8217; Equity</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Current liabilities: </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Accounts payable </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">511,523</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,376,599</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Accrued liabilities </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">179,370</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">181,318</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Accrued payroll and benefits</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">396,863</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">332,609</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Note payable, current portion</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">152,758</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Capital lease obligation, current portion</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,050</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total current liabilities</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,087,756</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,048,334</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Deferred rent</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">569,286</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">644,056</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">8% convertible debentures to related parties, net of debt discount</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">213,890</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">175,255</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">8% convertible debentures, net of debt discount</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,339,975</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,270,725</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total liabilities</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">3,210,907</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,138,370</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Stockholders&#8217; equity:</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Preferred stock: Series D, $.01 par value, voting; </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="3" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">5,000,000 shares authorized; none issued and outstanding</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Common stock: Class&#160;A, $.01 par value, voting; </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="3" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">40,000,000 shares authorized; 8,971,638 and 6,696,992</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="3" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">shares issued and outstanding, respectively</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">89,716</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">66,970</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Additional paid-in capital</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">206,277,806</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">203,151,364</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Foreign currency translation adjustment</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">23,466</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">58,233</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Accumulated deficit</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(202,146,300)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(201,585,341)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total stockholders&#8217; equity</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,244,688</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,691,226</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total liabilities and stockholders&#8217; equity</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">7,455,595</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">$</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,829,596</font></p></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.
4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
<br />
<br /></div><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="bottom" colspan="12" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">LIGHTPATH TECHNOLOGIES, INC.</font></b>
<br /><font style="font-family:Arial;font-size:8pt;">Consolidated Statements of Operations</font><font style="font-family:Arial;font-size:8pt;"> &#160; </font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="3" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">(Unaudited)</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">Three months ended</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">June 30,</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="3" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">(audited)</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">Twelve months ended</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">June 30,</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2010</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2009</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2010</font></b></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2009</font></b></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Product sales, net</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160;2,806,773</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ 1,589,692</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160;9,250,621</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ 7,489,545</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cost of sales </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,369,525</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,059,235</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,935,755</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; ">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,446,518</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Gross margin</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,437,248</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">530,457</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,314,866</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,043,027</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Operating expenses:</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Selling, general and administrative </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">937,129</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">480,838</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">3,259,551</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">3,636,093</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">New product development</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">219,159</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">200,821</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">869,440</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">887,400</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Amortization of intangibles</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,217</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,217</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">32,868</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">32,868</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Gain on sale of property and equipment</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(9,138)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(9,138)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(5,244)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total costs and expenses</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,155,367</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">689,876</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,152,721</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,551,117</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Operating income (loss)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">281,881</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(159,419)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">162,145</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(2,508,090)</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Other income (expense):</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Interest expense</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(57,919)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(48,281)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(210,002)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(254,622)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Interest expense - debt discount</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(96,949)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(81,997)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(370,385)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(640,695)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Interest expense - debt costs</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(38,620)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(32,664)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(147,550)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(225,228)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Interest expense - warrants to induce conversion</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(215,975)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Investment and other income</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">3,293</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,793</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,833</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">21,550</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Total other expense, net</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(190,195)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(158,149)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(723,104)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(1,314,970)</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net income (loss)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; 91,686</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; (317,568)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; (560,959)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160;(3,823,060)</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Income (Loss) per common share (basic)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; 0.01</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160; (0.05)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; (0.07)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160; (0.62)</font></p></td><td style=""></td></tr><tr><td valign="bottom" colspan="5" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Number of shares used in per share calculation</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:double black 2.5pt; border-bottom:solid black 1pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; 8,858,563 </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:double black 2.5pt; border-bottom:solid black 1pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">6,691,966 </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:double black 2.5pt; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,139,852</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:double black 2.5pt; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">6,167,827</font></p></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
<br />
<br /></div><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="bottom" colspan="4" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">LIGHTPATH TECHNOLOGIES, INC.</font></b>
<br /><font style="font-family:Arial;font-size:8pt;">Consolidated Statements of Cash Flows</font></p>
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" colspan="3" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">Year ended</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">June 30,</font></b></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2010</font></b></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; "><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">2009</font></b></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cash flows from operating activities</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net loss</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160;(560,959)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; (3,823,060)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Adjustments to reconcile net loss to net cash used in operating activities:</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Depreciation and amortization</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">700,475</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">565,988</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Interest from amortization of debt discount</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">370,385</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">640,695</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Fair value of warrants issued to induce debenture conversion</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">215,975</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Interest from amortization of debt costs</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">147,550</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">255,228</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;"> &#160; Issuance of common stock for interest on convertible debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">97,633</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;"> &#160; Common stock issued for legal settlement</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">50,000</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Gain on sale of property and equipment</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(9,138)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(5,244)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Stock based compensation</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">160,416</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">156,267</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Change in provision for doubtful accounts receivable</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(3,201)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(18,731)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Deferred rent</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(74,770)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">421,238</font></p></td><td style=""></td></tr><tr><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; Common stock issued for payment of consulting services</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">150,000</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">61,799</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Changes in operating assets and liabilities:</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Trade accounts receivables</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(827,228)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">379,953</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Other receivables</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">183,413</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(183,413)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Inventories</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(154,400)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">340,277</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;Prepaid expenses and other assets</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">199,522</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">81,125</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; Accounts payable and accrued liabilities</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(802,770)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(653,683)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;Net cash used in operating activities</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(470,705)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(1,467,953)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cash flows from investing activities</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; Purchase of property and equipment </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(987,728)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(563,764)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; Proceeds from sale of equipment</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">9,138</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">37,791</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;Net cash used in investing activities</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(978,590)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(525,973)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cash flows from financing activities</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Proceeds from exercise of stock options</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,393</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Proceeds from sale of common stock, net of costs</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,371,688</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Proceeds from sale of common stock from employee stock purchase plan</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">6,857</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">14,220</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Borrowings on 8% convertible debenture, net of issuance costs</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,568,749</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Exercise of warrants</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">139,334</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Payments on secured note payable</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(260,828)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Payments on capital lease obligation</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(5,050)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(18,603)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-indent: 10pt;"><font style="font-family:Arial;font-size:8pt;">Payments on note payable</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(152,758)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(124,984)</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net cash provided by financing activities</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,368,464</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,178,554</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Effect of exchange rate on cash and cash equivalents</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(34,767)</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">36,864</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Increase in cash and cash equivalents</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">884,402</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">221,492</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cash and cash equivalents, beginning of period</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">579,949</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">358,457</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cash and cash equivalents, end of period</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; 1,464,351</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; 579,949</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Supplemental disclosure of cash flow information:</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;Interest paid in cash </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160;3,477</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160; &#160; &#160; 34,817</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;Income taxes paid </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,940</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">9,753</font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> Supplemental disclosure of non-cash investing &amp; financing activities: </font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160;Convertible debentures converted into common stock </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">262,500</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160;732,250 </font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160;Prepaid interest through the issuance of common stock </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160;453,993 </font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; Fair value of warrants issued to broker of debt financing </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160;194,057 </font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; Fair value of warrants and incentive shares issued to debenture holders &#160;</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160;790,830 </font></p></td><td style=""></td></tr><tr><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; Intrinsic value of beneficial conversion feature underlying convertible &#160;debentures </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> &#160; &#160; &#160; &#160; &#160; &#160; &#160;600,635 </font></p></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
<br />
<br /></div><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="bottom" colspan="12" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><b><font style="font-family:Arial;font-size:8pt;">LIGHTPATH TECHNOLOGIES, INC.</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#8217; EQUITY</font></b>
<br /><b><font style="font-family:Arial;font-size:8pt;">Years ended June 30, 2009 and 2010 </font></b></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Foreign</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" rowspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Class A</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Additional</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Currency</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Total</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="top" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Common Stock</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Paid-in</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Translation</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Accumulated</font></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;">Stockholders&#8217;</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><u><font style="font-family:Arial;font-size:8pt;">Shares</font></u></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><u><font style="font-family:Arial;font-size:8pt;">Amount</font></u></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><u><font style="font-family:Arial;font-size:8pt;">Capital</font></u></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><u><font style="font-family:Arial;font-size:8pt;">Adjustment</font></u></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><u><font style="font-family:Arial;font-size:8pt;">Deficit</font></u></p></td><td valign="top" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><u><font style="font-family:Arial;font-size:8pt;">Equity</font></u></p></td><td valign="midd
le" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Balances at June 30, 2008</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,331,664</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; 53,317</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> $ &#160; 199,847,356 </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> $ &#160; &#160; &#160; &#160;21,369 </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt
;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> $ &#160;(197,762,281)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap;"><p><font style="font-family:Arial;font-size:8pt;"> $ &#160; &#160; 2,159,761 </font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Issuance of common stock for:</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Current interest on convertible debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">103,971</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,040</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">96,593</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-
right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">97,633</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Incentive to participate in convertible debenture placement, recorded as debt discount</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">73,228</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">732</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">74,399</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style
="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">75,131</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Prepayment of future interest on convertible debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">589,614</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">5,896</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">448,099</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 
5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">453,995</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
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<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Conversion of 25% of debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">475,496</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">4,755</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">727,495</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt
; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">732,250</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Payment on consulting service arrangements</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">74,839</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">748</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">61,051</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-rig
ht: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">61,799</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Vested restricted stock units</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">33,400</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">334</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(334)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p 
style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Employee Stock Purchase Plan</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">14,780</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">148</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">14,072</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p 
style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">14,220</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Issuance of warrants to private placement agent</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160;recorded as debt costs</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">194,057</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="t
ext-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">194,057</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160;on convertible debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,316,334</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p sty
le="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,316,334</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160;to convert debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">215,975</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="te
xt-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">215,975</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;"> &#160;and restricted stock units</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">156,267</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p styl
e="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">156,267</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Foreign currency translation adjustment</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">36,864</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">36,864</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net loss</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font s
tyle="font-family:Arial;font-size:8pt;">(3,823,060)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(3,823,060)</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;Comprehensive loss</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; ">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; ">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; ">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;border-bottom:solid black 1pt; ">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(3,786,196)</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Balance at June 30, 2009</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">6,696,992</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; 66,970</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; 203,151,364</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;fon
t-size:8pt;">$ &#160; &#160; &#160; &#160;58,233</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160;(201,585,341)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; 1,691,226</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Issuance of common stock for:</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Employee Stock Purchase Plan</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,910</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">89</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">6,768</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p sty
le="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">6,857</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Vested restricted stock units</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">20,000</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">200</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(200)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p 
style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Exercise of employee stock options</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">7,993</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">80</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,313</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; ">
<p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,393</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Conversion of debentures</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">170,455</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,705</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">260,795</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p 
style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">262,500</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Cashless exercise of warrants</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">63,622</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">636</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(636)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p 
style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Exercise of warrants</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">101,209</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,012</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">138,322</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p styl
e="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">139,334</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Settlement of litigation</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">26,455</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">265</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">49,735</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p styl
e="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">50,000</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Consulting services</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">69,445</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">694</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">149,306</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="t
ext-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">150,000</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Stock based compensation on stock </font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">options and restricted stock units</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">160,416</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="f
ont-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">160,416</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Sale of common stock and warrants, net</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">1,806,557</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">18,065</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,353,623</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style
="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">2,371,688</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Foreign currency translation adjustment</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(34,767)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; ">
<p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(34,767)</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Net loss</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">-</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font s
tyle="font-family:Arial;font-size:8pt;">(560,959)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-bottom:solid black 1pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(560,959)</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p style="text-align: center; "><font style="font-family:Arial;font-size:8pt;"> &#160; &#160;Comprehensive loss</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">(595,726)</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td valign="bottom" colspan="2" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Balance at June 30, 2010</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">8,971,638</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; 89,716</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; 206,277,806</font></p></td><td vali
gn="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; &#160; &#160;23,466</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 6pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160;(202,146,300)</font></p></td><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;white-space: nowrap; border-top:solid black 1pt; border-bottom:double black 2.5pt; padding-right: 9pt; "><p style="text-align: right; "><font style="font-family:Arial;font-size:8pt;">$ &#160; &#160; 4,244,688</font></p></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td valign="middle" style="padding: 0pt 5.4pt 5.4pt 5.4pt;">
<br /></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
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<br /></div><div style="margin-bottom:.0001in; margin-top:.0001in"><table cellspacing="0" cellpadding="3" style="border-collapse:collapse;border:none;"><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Contacts:</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">LightPath Technologies, Inc.</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Jim Gaynor</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">President &amp; CEO</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">or</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding
: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">Dorothy Cipolla</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">CFO</font></p></td><td style=""></td></tr><tr><td valign="bottom" style="padding: 0pt 5.4pt 5.4pt 5.4pt;"><p><font style="font-family:Arial;font-size:8pt;">+1 (407) 382-4003</font>
<br /><font style="font-family:Arial;font-size:8pt;">dcipolla@lightpath.com</font></p></td><td style=""></td></tr><tr><td style="padding: 0pt 5.4pt 5.4pt 5.4pt;"></td></tr></table>
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<br /><br /><p>CONTACT: &#160;Jim Gaynor, President &amp; CEO, or Dorothy Cipolla, CFO, dcipolla@lightpath.com, of LightPath Technologies, Inc., +1-407-382-4003,</p></div></div></body></html>
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