<SUBMISSION>
<ACCESSION-NUMBER>0001019687-05-003001
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20050930
<FILING-DATE>20051107
<DATE-OF-FILING-DATE-CHANGE>20051107
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACACIA RESEARCH CORP
<CIK>0000934549
<ASSIGNED-SIC>3670
<IRS-NUMBER>954405754
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-26068
<FILM-NUMBER>051183912
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>500 NEWPORT CENTER DRIVE
<STREET2>7TH FLOOR
<CITY>NEWPORT BEACH
<STATE>CA
<ZIP>92660
<PHONE>9494808300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>500 NEWPORT CENTER DRIVE
<STREET2>#
<CITY>NEWPORT BEACH
<STATE>CA
<ZIP>92660
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>acacia_10q093005.htm
<DESCRIPTION>ACACIA 10Q 09-30-05
<TEXT>
<html>
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    <title>
      Acacia 10Q 09-30-05
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    <div>&#160;</div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
      D.C.&#160; 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div>
        <hr style="COLOR: #000000" align="center" noshade size="1" width="60%">
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
      10-Q</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      EXCHANGE ACT OF 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
      THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Commission
      File Number 0-26068</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="acaciaresearch-logo.jpg" alt="Acacia Research Corp. Logo"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman, serif"><strong><u>ACACIA
      RESEARCH CORPORATION</u></strong></font></div>
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      Name of Registrant as Specified in Its Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Delaware</u></strong></font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>95-4405754</u></strong></font></div>
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          <tr>
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                or Other Jurisdiction of</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporation
                or Organization)</font></div>
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            <td align="left" valign="top" width="3%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
                Employer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                No.)</font></div>
            </td>
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          <tr>
            <td valign="top" width="43%">&#160;</td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td valign="top" width="40%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="43%">&#160;</td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td valign="top" width="40%">&#160;</td>
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          <tr>
            <td valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>500
                Newport Center Drive, Newport Beach, CA</u></strong></font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>92660</u></strong></font></div>
            </td>
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            <td valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of Principal Executive Offices)</font></div>
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            <td align="left" valign="top" width="3%">&#160;</td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(949)
      480-8300</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to filing requirements for
      the
      past 90 days. Yes </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings 2">T</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      No
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings 2">&#163;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
      by check mark whether the registrant is an accelerated filer (as defined in
      Rule
      12b-2 of the Exchange Act). <br>Yes </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings 2">T</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      No
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings 2">&#163;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      November 2, 2005, 27,631,076 shares of Acacia Research-Acacia Technologies
      common stock were issued and outstanding. As of November 2, 2005, 38,992,402
      shares of Acacia Research-CombiMatrix common stock were issued and
      outstanding.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
    </div>
    <div>
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
      RESEARCH CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Table
      of Contents</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a href="#PartI">Part
                I.&#160;&#160; Financial
                Information</a></strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item1">Item
                1.</a></font></div>
            </td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item1">Financial
                Statements</a></font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u><a href="#ARfins">Acacia
                Research Corporation Consolidated Financial
                Statements</a></u></font></div>
            </td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#ConsBalanceSheets"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                Balance Sheets as of September 30, 2005 and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                31, 2004 (Unaudited)</font></a></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#ConsSofOperations">Consolidated
                Statements of Operations and
                Comprehensive Income (Loss) for the </a></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#ConsSofOperations">Three
                Months and Nine Months Ended September 30,
                2005 and 2004 (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#ConsSofCash"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                Statements of Cash Flows for the Nine Months Ended </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                30, 2005</font></a></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#ConsSofCash">and
                2004 (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
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                to Consolidated Financial Statements
                (Unaudited)</a></font></div>
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            <td align="right" valign="top" width="3%">
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            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u><a href="#CombFins">*CombiMatrix
                Group Financial
                Statements</a></u></font></div>
            </td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#CombBalance">Balance
                Sheets as of September 30, 2005 and December
                31, 2004 (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></div>
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            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#CombSofOps"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                of Operations for the Three Months and Nine Months Ended </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                30, 2005</font></a></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#CombSofOps">and
                2004 (Unaudited)</a></font></div>
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            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23</font></div>
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          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#CombSofCash"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                of Cash Flows for the Nine Months Ended </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                30, 2005 and 2004 (Unaudited)</font></a></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
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          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#CombNotes">Notes
                to Financial Statements
                (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u><a href="#ATGfins">*Acacia
                Technologies Group Financial
                Statements</a></u></font></div>
            </td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#ARBalance">Balance
                Sheets as of September 30, 2005 and December 31,
                2004 (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#ARSofOps"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                of Operations for the Three Months and Nine Months Ended </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                30, 2005 </font></a></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#ARSofOps">and
                2004 (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#ARSofCash"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                of Cash Flows for the Nine Months Ended </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                30, 2005 and 2004 (Unaudited)</font></a></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#ARNotes">Notes
                to Financial Statements
                (Unaudited)</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="left" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item2">Item
                2.</a></font></div>
            </td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><a href="#P1Item2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management&#8217;s
                Discussion and Analysis of Financial Condition and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Results
                of Operations</font></a></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item3">Item
                3.</a></font></div>
            </td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item3">Quantitative
                and Qualitative Disclosures About Market
                Risk</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="59%">&#160;</td>
            <td align="justify" valign="top" width="3%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item4">Item
                4. </a></font></div>
            </td>
            <td align="left" valign="top" width="59%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1Item4">Controls
                and Procedures</a></font></div>
            </td>
            <td align="right" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">i</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" colspan="2" valign="top" width="72%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a href="#PartII">Part
                  II.&#160;&#160; Other
                  Information</a></strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="59%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="59%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
            </tr>
            <tr>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2Item1">Item
                  1.</a></font></div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2Item1">Legal
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              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="59%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>
            <tr>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2Item5">Item
                  5.</a></font></div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2Item5">Other
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              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="59%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>
            <tr>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2Item6">Item
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              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2Item6">Exhibits</a></font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">63</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="59%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="59%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" colspan="2" valign="top" width="72%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a href="#Signatures"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Signatures</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 1pt">&#160;</font></a></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">64</font></div>
              </td>
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            <tr>
              <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
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            <tr>
              <td align="left" colspan="2" valign="top" width="72%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a href="#EXIndex"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                  Index</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></a></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65</font></div>
              </td>
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        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">*NOTE:
      We are presenting the Acacia Research Corporation consolidated unaudited interim
      financial statements and the separate unaudited interim financial statements
      for
      the CombiMatrix group and the Acacia Technologies group. The separate financial
      statements and accompanying notes of the two groups are being provided as
      additional disclosure regarding the financial performance of the two divisions
      and to provide investors with information regarding the potential value and
      operating results of the respective businesses, which may affect the respective
      share values. The separate financial statements should be reviewed in
      conjunction with Acacia Research Corporation&#8217;s consolidated financial statements
      and accompanying notes. The presentation of separate financial statements is
      not
      intended to indicate that we have changed the title to any of our assets or
      changed the responsibility for any of our liabilities, nor is it intended to
      indicate that the rights of our creditors have been changed. Acacia Research
      Corporation, and not the individual groups, is the issuer of the securities.
      Holders of the two securities are stockholders of Acacia Research Corporation
      and do not have a separate and exclusive interest in the respective
      groups.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font size="2">ii</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="PartI">PART
      I.&#160;&#160; FINANCIAL INFORMATION</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P1Item1">Item
          1.&#160;&#160;&#160; FINANCIAL
          STATEMENTS</a></strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="right" colspan="7" valign="top" width="101%">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ARfins">ACACIA
                      RESEARCH CORPORATION</a></strong></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="right" colspan="7" valign="top" width="101%">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ConsBalanceSheets">CONSOLIDATED
                      BALANCE
                      SHEETS</a></strong></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="right" colspan="7" valign="top" width="101%">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(In
                      thousands, except share and per share
                      information)</strong></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="right" colspan="7" valign="top" width="101%">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Unaudited)</strong></font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div>&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                      30,</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                      31,</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ASSETS</strong></font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      assets:</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34,048</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,735</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                      investments</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,661
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,623
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      receivable</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,522
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">536
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                      expenses, inventory, and other assets</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,527
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">983
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current assets</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68,758
                      </font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">53,877
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,782
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,434
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patents,
                      net of accumulated amortization of $9,165 (2005) and $4,758
                      (2004)</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,329
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,063
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,545
                      </font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,545
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,294
                      </font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">408
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125,708</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,327</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES
                      AND STOCKHOLDERS' EQUITY</strong></font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      liabilities:</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      payable, accrued expenses and other</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,619</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,139</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Royalties
                      and legal fees payable</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      portion of deferred revenues</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">925
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">494
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current liabilities</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,875
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,633
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      income taxes</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,771
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,981
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      revenues, net of current portion</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,837
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,893
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,255
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">406
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,738
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,913
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                      interests</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">486
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">778
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                      and contingencies (Note 10)</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Redeemable
                      stockholders' equity:</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
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                      shares
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">no
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                      stock</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
                      Research - Acacia Technologies stock, par value $0.001 per
                      share;
                      50,000,000</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                      authorized; 27,619,593 and 19,811,524 shares issued and outstanding
                      as
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                      30, 2005 and December 31, 2004, respectively</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
                      Research - CombiMatrix stock, par value $0.001 per share; 50,000,000
                      shares</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">authorized;
                      38,992,402 and 31,200,496 shares issued and outstanding as
                      of</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                      30, 2005 and December 31, 2004, respectively</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                      paid-in capital</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">314,794
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">263,900
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      stock compensation</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,292</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                      comprehensive income</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(39</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(77</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                      deficit</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(204,046</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(188,238</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      stockholders' equity</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">109,484
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75,636
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125,708</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,327</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                </tr>

            </table>
          </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
          accompanying notes are an integral part of these consolidated financial
          statements.</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>
        <div>
          <div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" colspan="11" valign="top" width="145%">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
                        RESEARCH CORPORATION</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" colspan="11" valign="top" width="145%">
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                        information)</strong></font></div>
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                    <td align="right" colspan="11" valign="top" width="145%">
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              </table>
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            <div>&#160;</div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr>
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2005</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2004</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2005</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2004</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues:</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                        and development contract</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,302</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
                        fees</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Government
                        contract</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">973
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">685
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,603
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Products
                        and services</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,404
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">214
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        revenues</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,246
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,993
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,717
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,624
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        expenses:</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                        of government contract revenues</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">920
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">647
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,820
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,505
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                        of product sales</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">282
                        </font></div>
                    </td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,076
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,174
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,173
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,352
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contingent
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventor
                        royalties - V-chip</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,607
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">399
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,407
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,197
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(211</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(90</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        operating expenses</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,120
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,671
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,436
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,453
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        income (loss)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,874</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,678</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,719</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">171
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                        income (expense):</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                        income</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">434
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">218
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,089
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">568
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                        expense</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(100</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(201</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        other income</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">334
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">218
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">888
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">568
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing operations before income taxes and
                        minority
                        interests</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,540</font></div>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">70
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">232
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">206
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing operations before minority
                        interests</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,442</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,390</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,599</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">945
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                        interests</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing operations</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,441</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,390</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,598</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">948
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Discontinued
                        operations:</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
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                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(104</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        income (loss)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,441</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,390</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,808</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">844
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                        gains (losses) on short-term investments</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(59</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                        gains (losses) on foreign currency translation</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                        income (loss)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,432</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,372</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,770</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">777</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
        </div>
        <div>&#160;</div>
        <div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Continued
            on next page)</em></font></div>
        </div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2a</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="3">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div>
          <div>
            <div>
              <div>
                <div>
                  <div>
                    <div>
                      <table cellpadding="0" cellspacing="0" width="100%">

                          <tr>
                            <td align="right" colspan="11" valign="top" width="145%">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
                                RESEARCH CORPORATION</strong></font></div>
                            </td>
                          </tr>
                          <tr>
                            <td align="right" colspan="11" valign="top" width="145%">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ConsSofOperations">CONSOLIDATED
                                STATEMENTS OF OPERATIONS AND
                                COMPREHENSIVE INCOME
                                (LOSS</a>)&#160;(Continued)</strong></font></div>
                            </td>
                          </tr>
                          <tr>
                            <td align="right" colspan="11" valign="top" width="145%">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(In
                                thousands, except share and per share
                                information)</strong></font></div>
                            </td>
                          </tr>
                          <tr>
                            <td align="right" colspan="11" valign="top" width="145%">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Unaudited)</strong></font></div>
                            </td>
                          </tr>

                      </table>
                    </div>
                    <div>&#160;</div>
                    <div>
                      <table cellpadding="0" cellspacing="0" width="100%">

                          <tr>
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="right" colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                                the Three Months Ended</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                                the Nine Months Ended</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                          </tr>
                          <tr>
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                                30, 2005</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                                30, 2004</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                                30, 2005</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                                30, 2004</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                                (loss) per common share:</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attributable
                                to the Acacia Technologies group:</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                                loss</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,558</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,984</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                                and diluted loss per share</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.06</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.09</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attributable
                                to the CombiMatrix group:</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                                </font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                                income (loss)</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,548</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                                earnings (loss) per share</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.12</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.11</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.33</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.16
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                                income (loss)</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,548</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                            </td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828</font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                                earnings (loss) per share</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.11</font></div>
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                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.33</font></div>
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                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.16
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                                average shares:</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
                                Research - Acacia Technologies stock:</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                                and diluted</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,302,693
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,793,487
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,387,562
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,777,820
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
                                Research - CombiMatrix stock:</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                          </tr>
                          <tr bgcolor="#ffffff">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,239,726
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,962,190
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,887,872
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,570,562
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                          </tr>
                          <tr bgcolor="#cbf9d1">
                            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted</font></div>
                            </td>
                            <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,239,726
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,962,190
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,887,872
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,789,229
                                </font></div>
                            </td>
                            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                          </tr>

                      </table>
                    </div>
                  </div>
                </div>
                <div>&#160;</div>
                <div>&#160;</div>
                <div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
                    accompanying notes are an integral part of these consolidated
                    financial
                    statements.</em></font></div>
                </div>
                <div>&#160;</div>
                <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                  <div id="FTR">
                    <div id="GLFTR" style="WIDTH: 100%" align="left">
                    </div>
                  </div>
                  <div id="PN" style="PAGE-BREAK-AFTER: always">
                    <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2b</font></div>
                    <div style="WIDTH: 100%; TEXT-ALIGN: center">
                      <hr style="COLOR: black" noshade size="3">
                    </div>
                  </div>
                  <div id="HDR">
                    <div id="GLHDR" style="WIDTH: 100%" align="right">
                    </div>
                  </div>
                </div>
              </div>
            </div>
          </div>
        </div>
      </div>
      <div>
        <div>
          <div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" colspan="6" valign="top" width="110%">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
                        RESEARCH CORPORATION</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" colspan="6" valign="top" width="110%">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ConsSofCash">CONSOLIDATED
                        STATEMENTS OF CASH
                        FLOWS</a></strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" colspan="6" valign="top" width="110%">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(In
                        thousands)</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" colspan="6" valign="top" width="110%">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Unaudited)</strong></font></div>
                    </td>
                  </tr>

              </table>
            </div>
            <div>&#160;</div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                        the Nine Months Ended</strong></font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2005</strong></font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2004</strong></font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                        flows from operating activities:</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        income (loss) from continuing operations</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,598</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">948</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left">
                        <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                          to reconcile net income (loss) from continuing operations
                          to net cash used
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                        and amortization</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,260
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,080
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                        interests</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                        stock compensation</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(23</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">725
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                        tax benefit</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(209</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                        warrant charges (credits)</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                        legal settlement charges (credits)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                        impairment charge</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(53</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                        in assets and liabilities, excluding effect of business
                        acquisition:</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                        receivable</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(986</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(178</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                        expenses, inventory and other assets</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(576</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">584
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                        payable, accrued expenses and other</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">574
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">930
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Royalties
                        and legal fees payable</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                        revenues</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">375
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,565</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        cash used in operating activities from continuing
                        operations</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,294</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,346</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        cash used in operating activities from discontinued
                        operations</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(525</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(636</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
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                  <tr bgcolor="#cbf9d1">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                        flows from investing activities:</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,162</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(721</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                        of available-for-sale investments</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(57,201</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(48,949</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                        of available-for-sale investments</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">59,260
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38,721
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business
                        acquisition</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,796</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                        of additional interests in equity method investee</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,100</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patent
                        acquisition costs</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(445</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        cash used in investing activities from continued
                        operations</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6,444</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,954</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        cash used in investing activities from discontinued
                        operations</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(198</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        cash used in investing activities</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6,444</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(11,152</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                        flows from financing activities:</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                        from sale of common stock and warrants, net of issuance
                        costs</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,354
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,715
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                        from the exercise of stock options and warrants</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">187
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,797
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        cash provided by financing activities</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,541
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,512
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                        of exchange rate on cash</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                        (decrease) in cash and cash equivalents</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,313
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,627</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                        and cash equivalents, beginning</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,735
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,199
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                        and cash equivalents, ending</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34,048</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,572</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
        </div>
        <div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
            accompanying notes are an integral part of these consolidated financial
            statements.</em></font></div>
        </div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="3">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
      RESEARCH CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ConsNotes">NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</a>
      (UNAUDITED)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF BUSINESS AND BASIS OF PRESENTATION </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Description
      of Business. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation (&#8220;we,&#8221;&#8220;us&#8221; and &#8220;our&#8221;) is comprised of two operating groups:
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">the
      CombiMatrix group and the Acacia Technologies group</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      life
      sciences business, referred to as the &#8220;CombiMatrix group,&#8221; a division of Acacia
      Research Corporation, is primarily comprised of our wholly owned subsidiary,
      CombiMatrix Corporation and CombiMatrix Corporation&#8217;s wholly owned subsidiaries,
      CombiMatrix Molecular Diagnostics, Inc. and CombiMatrix K.K. and includes all
      corporate assets, liabilities and transactions related to Acacia Research
      Corporation&#8217;s life sciences business. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CombiMatrix
      group is seeking to become a broadly diversified biotechnology business, through
      the development of proprietary technologies and products in the areas of drug
      development, genetic analysis, molecular diagnostics, nanotechnology research,
      defense and homeland security markets, as well as other potential markets where
      its products could be utilized. Among the technologies being developed by the
      CombiMatrix group is a platform technology to rapidly produce customizable
      arrays, which are semiconductor-based tools for use in identifying and
      determining the roles of genes, gene mutations and proteins. This technology
      has
      a wide range of potential applications in the areas of genomics, proteomics,
      biosensors, drug discovery, drug development, diagnostics, combinatorial
      chemistry, material sciences and nanotechnology. Other technologies include
      proprietary molecular synthesis and screening methods for the discovery of
      potential new drugs</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      CombiMatrix Molecular Diagnostics, Inc., a wholly owned subsidiary located
      in
      Irvine, California, is exploring opportunities for the CombiMatrix group&#8217;s
      arrays in the field of clinical diagnostics. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CombiMatrix
      K.K., a wholly owned Japanese corporation located in Tokyo, Japan, is exploring
      opportunities for CombiMatrix Corporation&#8217;s array system with pharmaceutical and
      biotechnology companies in the Asian market.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      intellectual property licensing and enforcement business, referred to as the
      &#8220;Acacia Technologies group,&#8221; a division of Acacia Research Corporation, is
      primarily comprised of certain of Acacia Research Corporation&#8217;s wholly owned
      subsidiaries and limited liability companies including: Acacia Global
      Acquisition Corporation, Acacia Media Technologies Corporation, Acacia Patent
      Acquisition Corporation, Acacia Technologies Services Corporation, AV
      Technologies LLC, Broadcast Innovation LLC, Computer Cache Coherency
      Corporation, Computer Docking Station Corporation, Data Encryption Corporation,
      Data Innovation LLC, Financial Services Innovation LLC, Information Technology
      Innovation LLC, InternetAd LLC, IP Innovation LLC, KY Data Systems LLC,
      Microprocessor Enhancement Corporation, New Medium LLC, TechSearch LLC, VData
      LLC, Soundview Technologies, Inc. and Spreadsheet Automation Corporation, and
      also includes all corporate assets, liabilities, and related transactions of
      Acacia Research Corporation attributed to Acacia Research Corporation&#8217;s
      intellectual property licensing and enforcement business. See Note 8 for
      information on our recent business acquisition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group develops, acquires, and licenses patented
      technologies.&#160; Acacia controls 33 patent portfolios, which include over
      130
      U.S. patents, and certain foreign counterparts, covering technologies used
      in a
      wide variety of industries including Audio/Video Enhancement &amp;
      Synchronization, Broadcast Data Retrieval, Computer Memory Cache Coherency,
      Credit Card Fraud Protection, Data Encryption &amp; Product Activation, Digital
      Media Transmission (&#8220;DMT&#174;&#8221;), Digital Ink Jet Printing, Digital Video Production,
      Dynamic Manufacturing Modeling, Enhanced Internet Navigation, High Resolution
      Optics, Image Resolution Enhancement, Hearing Aid ECS, Interactive Data Sharing,
      Interactive Television, Interstitial Internet Advertising, Laptop Connectivity,
      Microprocessor Enhancement, Multi-Dimensional Bar Codes, Network Data Back-Up,
      Resource Scheduling, Rotational Video Imaging and Spreadsheet
      Automation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 11, 2002, our stockholders voted in favor of a recapitalization
      transaction, which became effective on December 13, 2002, whereby we created
      two
      new classes of common stock called Acacia Research-CombiMatrix common stock
      (&#8220;AR-CombiMatrix stock&#8221;) and Acacia Research-Acacia Technologies common stock
      (&#8220;AR-Acacia Technologies stock&#8221;), and divided our existing Acacia Research
      Corporation common stock into shares of the two new classes of common stock.
      AR-CombiMatrix stock is intended to reflect separately the performance of Acacia
      Research Corporation&#8217;s CombiMatrix group. AR-Acacia Technologies stock is
      intended to reflect separately the performance of Acacia Research Corporation&#8217;s
      Acacia Technologies group. Although the AR-CombiMatrix stock and the AR-Acacia
      Technologies stock are intended to reflect the performance of our different
      business groups, they are both classes of common stock of Acacia Research
      Corporation and are not stock issued by the respective groups. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Basis
      of Presentation.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      accompanying unaudited consolidated financial statements include the accounts
      of
      Acacia Research Corporation and its wholly owned and majority-owned
      subsidiaries. Material intercompany transactions and balances have been
      eliminated in consolidation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying consolidated financial statements have been prepared in accordance
      with generally accepted accounting principles for interim financial information
      and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
      Accordingly, certain information and footnotes required by generally accepted
      accounting principles in annual financial statements have been omitted or
      condensed in accordance with quarterly reporting requirements of the Securities
      and Exchange Commission (&#8220;SEC&#8221;). These interim consolidated financial statements
      should be read in conjunction with </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      consolidated financial statements and notes thereto for the year ended December
      31, 2004, as reported by us in our Annual Report on Form 10-K</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      year-end consolidated balance sheet data was derived from audited financial
      statements but does not include all disclosures required by accounting
      principles generally accepted in the United States of America.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      consolidated financial statements of Acacia Research Corporation include all
      adjustments of a normal recurring nature which, in the opinion of management,
      are necessary for a fair statement of our financial position as of September
      30,
      2005, and results of operations and cash flows for the interim periods
      presented. The results of operations for the three months and nine months ended
      September 30, 2005, are not necessarily indicative of the results to be expected
      for the entire year.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Separate
      Group Presentation.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      AR-CombiMatrix stock and AR-Acacia Technologies stock are intended to reflect
      the separate performance of the respective divisions of Acacia Research
      Corporation. The CombiMatrix group and the Acacia Technologies group are not
      separate legal entities. Holders of AR-CombiMatrix stock and AR-Acacia
      Technologies stock are stockholders of Acacia Research Corporation. As a result,
      holders of AR-CombiMatrix stock and AR-Acacia Technologies stock continue to
      be
      subject to all of the risks of an investment in Acacia Research Corporation
      and
      all of its businesses, assets and liabilities. The assets Acacia Research
      Corporation attributes to one of the groups could be subject to the liabilities
      of the other group. The group financial statements have been prepared in
      accordance with generally accepted accounting principles in the United States
      of
      America, and taken together, comprise all the accounts included in the
      corresponding consolidated financial statements of Acacia Research Corporation.
      The financial statements of the groups reflect the financial condition, results
      of operations, and cash flows of the businesses included therein. The financial
      statements of the groups include the accounts or assets of Acacia Research
      Corporation specifically attributed to the groups and were prepared using
      amounts included in Acacia Research Corporation&#8217;s consolidated financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Financial
      effects arising from one group that affect Acacia Research Corporation&#8217;s results
      of operations or financial condition could, if significant, affect the results
      of operations or financial condition of the other group and the market price
      of
      the class of common stock relating to the other group. Any division net losses
      of the CombiMatrix group or of the Acacia Technologies group, and dividends
      or
      distributions on, or repurchases of, AR-CombiMatrix stock or AR-Acacia
      Technologies stock, will reduce the assets of Acacia Research Corporation
      legally available for payment of dividends on AR-CombiMatrix stock or AR-Acacia
      Technologies stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revision
      in the Classification of Certain Securities</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In
      connection with the preparation of our annual Report on Form 10-K for the year
      ended December 31, 2004, we concluded that it was appropriate to classify our
      auction rate municipal bonds and variable rate municipal demand notes as current
      investments. &#160;Previously, such investments had been classified as cash
      and
      cash equivalents. Accordingly, we have revised our prior classification to
      report these securities as current investments in our Consolidated Balance
      Sheet
      as of September 30, 2004. &#160;We have also made corresponding adjustments
      to
      our Consolidated Statement of Cash Flows for the nine months ended September
      30,
      2004, to reflect the gross purchases and sales of these securities as investing
      activities rather than as a component of cash and cash equivalents. &#160;This
      change in classification does not affect previously reported cash flows from
      operations or from financing activities in our previously reported Consolidated
      Statements of Cash Flows, or our previously reported Consolidated Statements
      of
      Income for any period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      September 30, 2004, and December 31, 2003, before this revision in
      classification, $11,750,000 and $7,750,000, respectively, of these current
      investments were classified as cash and cash equivalents on our Consolidated
      Balance Sheets.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      For the
      nine months ended September 30, 2004, before this revision in classification,
      net cash used in investing activities related to these current investments
      of
      $4,000,000, net, were included in cash and cash equivalents in our Consolidated
      Statement of Cash Flows.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue
      Recognition.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      We
      recognize revenue in accordance with Staff Accounting Bulletin No. 104, &#8220;Revenue
      Recognition&#8221; (&#8220;SAB No. 104&#8221;) and related authoritative pronouncements. Revenues
      from multiple-element arrangements are accounted for in accordance with Emerging
      Issues Task Force (&#8220;EITF&#8221;) Issue 00-21, &#8220;Revenue Arrangements with Multiple
      Deliverables.&#8221; Revenue is recognized when (i) persuasive evidence of an
      arrangement exists, (ii) all obligations have been performed pursuant to the
      terms of the license agreement, (iii) amounts are fixed or determinable and
      (iv)
      collectibility of amounts is reasonably assured.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>CombiMatrix
      Group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      from multiple-element arrangements involving license fees, up-front payments
      and
      milestone payments, which are received and/or billable by us in connection
      with
      other rights and services that represent continuing obligations of ours, are
      deferred until all of the elements have been delivered or until we have
      established objective and verifiable evidence of the fair value of the
      undelivered elements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      from government grants and contracts are recognized in accordance with
      Accounting Research Bulletin (&#8220;ARB&#8221;) No. 43, &#8220;Government Contracts,&#8221; and related
      pronouncements. Accordingly, revenues are recognized under the
      percentage-of-completion method of accounting, using the cost-to-cost approach
      to measure completeness at each reporting period. Under the
      percentage-of-completion method of accounting, contract revenues and expenses
      are recognized in the period that work is performed based on the percentage
      of
      actual incurred costs to estimated total contract costs. Actual contract costs
      and cost estimates include direct charges for labor and materials and indirect
      charges for labor, overhead and certain general and administrative charges.
      Contract change orders and claims are included when they can be reliably
      estimated and are considered probable. For contracts that extend over a one-year
      period, revisions in contract cost estimates, if they occur, have the effect
      of
      adjusting current period earnings applicable to performance in prior periods.
      Should current contract estimates indicate an overall future loss to be
      incurred, a provision is made for the total anticipated loss in the current
      period. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
      from the sale of products and services, including shipping and handling fees,
      are recognized when delivery has occurred or services have been rendered.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
      revenues arise from payments received in advance of the culmination of the
      earnings process. Deferred revenues expected to be recognized within the next
      twelve months are classified within current liabilities. Deferred revenues
      will
      be recognized as revenue in future periods when the applicable revenue
      recognition criteria, as described above, are met. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acacia
      Technologies Group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of our license agreements, the Acacia Technologies group grants
      non-exclusive licenses for the use of its patented technologies. In general,
      pursuant to the terms of our agreements with our licensees, upon the grant
      of
      the licenses, the Acacia Technologies group has no further obligations with
      respect to the licenses granted. License fees paid to and recognized as revenue
      by the Acacia Technologies group are non-refundable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      generated from license agreements are generally accrued and recognized as
      revenue in the period earned, provided that amounts are fixed or determinable
      and collectibility is reasonably assured. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      license agreements provide for the calculation of license fees based on a
      licensee&#8217;s actual quarterly sales or actual per unit activity, applied to a
      contractual royalty rate. Licensees that pay license fees on a quarterly basis
      generally report actual quarterly sales or actual per unit activity information
      and related quarterly license fees due to the Acacia Technologies group within
      30 to 45 days after the end of the quarter in which such sales or activity
      takes
      place. Consequently, the Acacia Technologies group recognizes revenue from
      these
      licensing agreements on a three-month lag basis, in the quarter following the
      quarter of sales or per unit activity, provided amounts are fixed or
      determinable and collectibility is reasonably assured. The lag method described
      above allows for the receipt of licensee royalty reports prior to the
      recognition of revenue.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      license agreements provide for the payment of a minimum upfront annual license
      fee at the inception of each annual license term. Minimum upfront annual license
      fees are generally determined based on a licensee&#8217;s estimated annual sales or a
      licensee&#8217;s base level of per unit activity. These minimum upfront annual license
      fee payments are deferred and amortized to revenue on a straight-line basis
      over
      the annual license term. To the extent actual annual royalties, determined
      and
      reported in accordance with the terms of the respective agreements, exceed
      the
      minimum upfront annual license fees paid, the additional royalties are
      recognized in revenue in the quarter following the quarter in which the base
      per
      unit activity was exceeded or the quarter following the annual license term,
      depending on the terms of the respective agreement, provided that amounts are
      fixed or determinable and collectibility is reasonably assured. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      license agreements provide for the payment of contractually determined paid-up
      license fees to us in consideration for the grant of a non-exclusive,
      retroactive and future license to manufacture and/or sell products covered
      by
      our patented technologies. Certain of the agreements also provide for future
      royalties or additional required payments based on future activities. The
      execution of these license agreements may also result in the dismissal of any
      pending litigation. Pursuant to the terms of these agreements, the Acacia
      Technologies group has no further obligation with respect to the grant of the
      non-exclusive retroactive and future license, including no express or implied
      obligation on the Acacia Technologies group&#8217;s part to maintain or upgrade the
      technology, or provide future support or services. Generally, the agreements
      provide for the grant of the license upon execution of the agreement. As such,
      the earnings process is generally complete upon the execution of the agreement,
      and revenue is recognized upon execution of the agreement, when collectibility
      is reasonably assured, and all other revenue recognition criteria have been
      met.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">License
      fee payments received by the Acacia Technologies group that do not meet the
      revenue recognition criteria described above are deferred until the revenue
      recognition criteria are met. The Acacia Technologies group assesses collection
      of accrued license fees based on a number of factors, including past transaction
      history and credit-worthiness. If it is determined that collection is not
      reasonably assured, the fee is recognized when collectibility becomes reasonably
      assured, assuming all other revenue recognition criteria have been met, which
      is
      generally upon receipt of cash.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      result of our licensing and any related intellectual property enforcement
      activities, we may recognize royalty revenues that relate to prior period
      activities of our licensees. Differences between amounts initially recognized
      and amounts subsequently audited or reported as an adjustment to those amounts
      are recognized in the period the adjustment is determined as a change in
      accounting estimate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Inventory.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Inventory, which consists primarily of raw materials to be used in the
      production of the CombiMatrix group&#8217;s array products, is stated at the lower of
      cost or market using the first-in, first-out method.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Stock-Based
      Compensation.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation has two stock-based employee compensation plans, the 2002
      CombiMatrix Stock Incentive Plan and the 2002 Acacia Technologies Stock
      Incentive Plan. In May 2005, CombiMatrix Molecular Diagnostics, Inc. adopted
      the
      CombiMatrix Molecular Diagnostics 2005 Stock Award Plan. Compensation cost
      related to stock options issued to employees is accounted for in accordance
      with
      Accounting Principles Board (&#8220;APB&#8221;) Opinion No. 25, &#8220;Accounting for Stock Issued
      to Employees&#8221; (&#8220;APB No. 25&#8221;) and related interpretations. Compensation cost
      attributable to such options is recognized based on the difference, if any,
      between the closing market price (or other estimate of fair value) of the stock
      on the date of grant and the exercise price of the option. Compensation cost
      is
      generally deferred and amortized on an accelerated basis over the vesting period
      of the individual option awards using the amortization method prescribed in
      Financial Accounting Standards Board (&#8220;FASB&#8221;) Interpretation No. 28, &#8220;Accounting
      for Stock Appreciation Rights and Other Variable Stock Option or Award Plans&#8221;
      (&#8220;FIN No. 28&#8221;). We have adopted the disclosure only requirements of SFAS No.
      123, &#8220;Accounting for Stock-Based Compensation&#8221; (&#8220;SFAS No. 123&#8221;), as amended by
      SFAS No. 148 &#8220;Accounting for Stock-Based Compensation&#8212;Transition and
      Disclosure&#8212;an amendment of SFAS&#160;No.&#160;123&#8221; (&#8220;SFAS No. 148&#8221;), with
      respect to options issued to employees. Compensation cost of stock options
      and
      warrants issued to non-employee service providers is accounted for under the
      fair value method required by SFAS No. 123 and related
      interpretations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table illustrates the effect on net income (loss) and earnings (loss)
      per share if Acacia Research Corporation had applied the fair value recognition
      provisions of SFAS No. 123 (in thousands, except per share data): </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AR-Acacia
                      Technologies Stock</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AR-CombiMatrix
                      Stock</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Three
                      Months Ended</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Three
                      Months Ended</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                      30,</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                      30,</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                      30,</strong></font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                      (loss) from operations as reported</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,558)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,548)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Add:
                      Stock-based compensation, intrinsic</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">value
                      method reported in net loss, net of tax </font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123&#160;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;&#160;
                        </font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">180&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deduct:
                      Pro forma stock-based compensation</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">fair
                      value method, net of tax </font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(396)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(411)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(716)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,575)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                      (loss) from operations, pro forma</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,831)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,253)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,599)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,943)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                      earnings (loss) per share from operations as reported</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.06)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.09)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.12)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.11)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                      earnings (loss) per share from operations, pro forma</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.07)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.11)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.14)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.16)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                      earnings (loss) per share from operations as reported</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
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                    <div>&#160;</div>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.96%</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.97%</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.57%</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">94%</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104%</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expected
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>

            </table>
          </div>
          <div>&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AR-Acacia
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AR-CombiMatrix
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nine
                      Months Ended</strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nine
                      Months Ended</strong></font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,984)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Add:
                      Stock-based compensation, intrinsic</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">value
                      method reported in net loss, net of tax</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;&#160;
                        </font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;&#160;
                        </font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">606&#160;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deduct:
                      Pro forma stock-based compensation</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">fair
                      value method, net of tax</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,113)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,524)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,407)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                      (loss) from operations, pro forma</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6,182)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,508)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(13,023)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">242&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                      earnings (loss) per share from operations as reported</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.33)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.16&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                      earnings (loss) per share from operations, pro forma</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.23)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.28)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.41)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.01&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                      earnings (loss) per share from operations as reported</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.33)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.16&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                      earnings (loss) per share from operations, pro forma</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.23)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.28)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.41)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.01&#160;
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                      free interest rate</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.76%</font></div>
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.83%</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.13%</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>&#160;</div>
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                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Volatility</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">94%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expected
                      term</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                      years</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
      </div>
      <div>__________________</div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">The
                fair value of stock options was determined using the Black-Scholes
                option-pricing model. The fair value calculations assume no expected
                dividends.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Includes
                the impact of non-cash stock compensation expense related to restricted
                stock grants.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the three months ended September 30, 2005, Acacia Research Corporation granted
      290,000 shares of restricted AR-Acacia Technologies stock with an aggregate
      grant date fair market value of $1,364,000. The restricted stock grants vest
      in
      August 2007. The fair value was estimated based on the market price of AR-Acacia
      Technologies stock on the applicable measurement date. Non-cash stock
      compensation expense for the three months ended September 30, 2005 included
      $81,000 in non-cash stock compensation expense related to restricted stock
      grants.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Patents
      and Goodwill. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
      and identifiable intangibles, including patents, are recorded when the
      consideration paid for acquisitions exceeds the fair value of the net tangible
      assets acquired. Patents, once issued or purchased, are amortized on the
      straight-line method over their remaining economic useful lives. Goodwill is
      not
      amortized. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Impairment
      of Long-lived Assets and Goodwill.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      We
      review long-lived assets and intangible assets for potential impairment annually
      and when events or changes in circumstances indicate the carrying amount of
      an
      asset may not be recoverable. In the event the sum of the expected undiscounted
      future cash flows resulting from the use of the asset is less than the carrying
      amount of the asset, an impairment loss equal to the excess of the asset&#8217;s
      carrying value over its fair value is recorded. If an asset is determined to
      be
      impaired, the loss is measured based on quoted market prices in active markets,
      if available. If quoted market prices are not available, the estimate of fair
      value is based on various valuation techniques, including a discounted value
      of
      estimated future cash flows.</font></div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;
      Goodwill is evaluated for impairment in accordance with SFAS No. 142, &#8220;Goodwill
      and Other Intangible Assets&#8221; (&#8220;SFAS No. 142&#8221;) and is subject to a periodic
      review for potential impairment at a reporting unit level. Reviews for potential
      impairment must occur at least annually and may be performed earlier, if
      circumstances indicate that an impairment may have occurred. Acacia Research
      Corporation has elected to perform its annual tests for indications of goodwill
      impairment as of December 31 of each year. Goodwill is allocated between two
      of
      our reporting units at September 30, 2005: 1) the Acacia Technologies group
      and
      2) the CombiMatrix group. The fair values of our reporting units are estimated
      using a discounted cash flow analysis and by reference to quoted market prices
      of Acacia Research Corporation&#8217;s classes of stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SFAS&#160;No.
      142 requires us to compare the fair value of our reporting units to their
      carrying amounts on an annual basis to determine if there is potential goodwill
      impairment. If the fair value of a reporting unit is less than its carrying
      value, an impairment loss is recorded to the extent that the fair value of
      the
      goodwill within the reporting unit is less than its carrying value. There can
      be
      no assurance that future goodwill impairment tests will not result in a charge
      to earnings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Business
      Acquisitions. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      cost
      of an acquired business is assigned to the tangible and identifiable intangible
      assets acquired and liabilities assumed on the basis of their fair values at
      the
      date of acquisition. We assess fair value using a variety of methods, including
      the use of present value models, independent appraisers, and estimation of
      current selling prices and replacement values. Amounts recorded as intangible
      assets are based on assumptions and estimates regarding the amount and timing
      of
      projected revenues and costs, appropriate risk-adjusted discount rates, as
      well
      as assessing the economic useful lives of our technologies, the impact of
      competition and other market factors. Actual results may vary from projected
      results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Use
      of Estimates. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      preparation of financial statements in conformity with generally accepted
      accounting principles in the United States of America requires management to
      make estimates and assumptions that affect the reported amount of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the consolidated financial statements and the reported amounts of revenues
      and
      expenses during the reporting period. Actual results could differ from these
      estimates.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EARNINGS
      PER SHARE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Earnings
      per share for each class of common stock is computed by dividing the earnings
      or
      loss allocated to each class of common stock by the weighted average number
      of
      outstanding shares of that class of common stock. Diluted earnings per share
      is
      computed by dividing the earnings or loss allocated to each class of common
      stock by the weighted average number of outstanding shares of that class of
      common stock including the dilutive effect of common stock equivalents.
      Potentially dilutive common stock equivalents primarily consist of employee
      stock options and warrants.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      earnings or losses allocated to each class of common stock are determined by
      Acacia Research Corporation&#8217;s board of directors. This determination is
      generally based on the net income or loss amounts of the corresponding group
      determined in accordance with accounting principles generally accepted in the
      United States of America, consistently applied. Acacia Research Corporation
      believes this method of allocation is systematic and reasonable. The Acacia
      Research Corporation board of directors can, at its discretion, change the
      method of allocating earnings or losses to each class of common stock at any
      time. Management currently has no plans to change allocation
      methods.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;The
      following
      table presents a reconciliation of basic and diluted&#160;weighted average
      shares used in the computation of basic and diluted income (loss) per
      share:&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia
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                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                    and diluted weighted average number of common </font></div>
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;
                    shares outstanding</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,302,693
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,793,487
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,387,562
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,777,820
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Potential
                    AR-Acacia Technologies stock common shares excluded from the
                    per share
                    calculation because the effect of their inclusion would be
                    anti-dilutive</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,032,874
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">649,498
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,210,358
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,202,948
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: black thin solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia
                    Research - CombiMatrix stock</strong></font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                    weighted average number of common shares outstanding</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,239,726
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,962,190
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,887,872
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,570,562
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dilutive
                    effect of outstanding stock options and warrants</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,218,667
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
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                    outstanding</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,239,726
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,962,190
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,887,872
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,789,229
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Potential
                    AR-CombiMatrix stock common shares excluded from the per share
                    calculation
                    because the effect of their inclusion would be
                    anti-dilutive</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">44,096
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">725,906
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">412,295
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                </td>
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      <div>&#160;</div>
      <div>&#160;</div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GOODWILL
      AND INTANGIBLES</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
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      December 31, 2004. The CombiMatrix group had $19,424,000 of goodwill at
      September 30, 2005, and December 31, 2004. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation&#8217;s only identifiable intangible assets at September 30,
      2005, and December 31, 2004, are patents and patent rights. The gross carrying
      amounts and accumulated amortization as of September 30, 2005, and December
      31,
      2004, related to patents, by segment, are as follows (in
      thousands):</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <div>
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              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia
                    Technologies Group</strong></font></div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix
                    Group</strong></font></div>
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              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30,</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                    31,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                    31,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                    carrying amount - patents</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,399</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,726</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,095</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,095</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                    amortization</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,270</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,684</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,895</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,074</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patents,
                    net</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,129</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,042</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,200</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,021</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group and the CombiMatrix group&#8217;s patents have remaining
      estimated economic useful lives up to 2012 and 2020, respectively. The weighted
      average remaining estimated economic useful life of the Acacia Technologies
      group&#8217;s patents is 5 years. Annual aggregate amortization expense for each of
      the five fiscal years through December 31, 2009, is estimated to be $4,925,000
      in 2005, $5,350,000 in 2006, $5,298,000 in 2007, $3,975,000 in 2008 and
      $3,524,000 in 2009 for the Acacia Technologies group and $1,095,000 per year
      for
      the CombiMatrix group. At September 30, 2005, and December 31, 2004, all of
      our
      acquired intangible assets other than goodwill were subject to
      amortization.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Note
      8 for additions to patent related intangibles during the nine months ended
      September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>5.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>EQUITY
      FINANCINGS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      February 2005, Acacia Research Corporation raised gross proceeds of $19,600,000
      through the sale of 3,500,000 shares of AR-Acacia Technologies stock at a price
      of $5.60 per share in a registered direct offering. Net proceeds raised of
      approximately $19,532,000, which are net of related issuance costs, were
      attributed to the Acacia Technologies group. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      July
      2005, Acacia Research Corporation raised gross proceeds of $3,151,000 through
      the sale of 1,400,444 shares of AR-CombiMatrix stock at a price of $2.25 per
      share in a registered direct offering. Net proceeds raised of approximately
      $3,114,000, which are net of related issuance costs, were attributed to the
      CombiMatrix group. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2005, Acacia Research Corporation raised gross proceeds of $10,537,000
      through the sale of 6,385,907 shares of AR-CombiMatrix stock and 1,596,478
      AR-CombiMatrix stock purchase warrants at a price of $1.65 per unit in a
      registered direct offering. Each unit consisted of one share of AR-CombiMatrix
      stock and one-quarter of a five-year AR-CombiMatrix stock purchase warrant.
      Each
      full AR-CombiMatrix stock purchase warrant entitles the holder to purchase
      a
      share of AR-CombiMatrix stock at a price of $2.40 per share and is exercisable
      immediately upon issue. Net proceeds raised of approximately $9,707,000, which
      are net of related issuance costs, were attributed to the CombiMatrix group.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      April
      2004, Acacia Research Corporation raised gross proceeds of $15,000,000 through
      the sale of 3,000,000 shares of AR- CombiMatrix stock at a price of $5.00 per
      share in a registered direct offering. Net proceeds raised of approximately
      $13,715,000, which are net of related issuance costs, were attributed to the
      CombiMatrix group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
      from these offerings are being used for general working capital purposes by
      the
      respective operating groups. All of the shares of stock were offered pursuant
      to
      an effective registration statement previously filed with the Securities and
      Exchange Commission. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RESEARCH
      AND DEVELOPMENT CONTRACTS </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      August
      2004, the CombiMatrix group received a $1,000,000 upfront payment from Furuno
      Electric Co., LTD (&#8220;Furuno&#8221;) as part of a multi-year collaboration agreement to
      develop a bench-top array synthesizer for commercial applications. In 2003,
      the
      CombiMatrix group received upfront and milestone payments from Toppan Printing
      Co., LTD (&#8220;Toppan&#8221;) totaling $2,400,000, pursuant to a multi-year collaboration
      and supply agreement to develop and manufacture arrays using the CombiMatrix
      group&#8217;s proprietary electrochemical detection approach. The payments received
      from Furuno and Toppan are included in deferred revenues at September 30, 2005,
      and December 31, 2004, in accordance with the CombiMatrix group&#8217;s revenue
      recognition policies for multiple-element arrangements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2004, the CombiMatrix group completed all phases of its research and development
      agreement with Roche Diagnostics, GmbH (&#8220;Roche&#8221;). As a result of completing all
      of its obligations under this agreement and in accordance with the CombiMatrix
      group&#8217;s revenue recognition policies for multiple-element arrangements, the
      CombiMatrix group recognized all previously deferred Roche related contract
      revenues totaling $17,302,000 during the first quarter of 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RECENT
      ACCOUNTING PRONOUNCEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
      June 2005 the FASB issued FASB Staff Position No. 150-5, &#8220;Issuer's Accounting
      under </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FASB
      Statement No. 150</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      for Freestanding Warrants and Other Similar Instruments on Shares That Are
      Redeemable,&#8221; (&#8220;FSP No. 150-5&#8221;) to address whether freestanding warrants and
      other similar instruments on shares that are redeemable would be subject to
      the
      requirements of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FASB
      Statement No. 150</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
      &#8220;Accounting for Certain Financial Instruments with Characteristics of both
      Liabilities and Equity,&#8221; regardless of the timing of the redemption feature or
      the redemption price. FSP No. 150-5 clarifies that warrants for shares that
      are
      redeemable are liabilities under Statement 150 because the warrants embody
      obligations to repurchase the issuer's shares and may require (either
      conditionally or unconditionally) a transfer of assets. The liability is
      required to be adjusted at each balance sheet date for changes in the market
      value of the AR-CombiMatrix stock, with the corresponding charge (credit)
      reflected in the statement of operations. The guidance in FSP No. 150-5 is
      required to be applied to the first reporting period beginning after June 30,
      2005, with the cumulative effect of changes to previously reported financial
      information reflected in the first reporting period beginning after June 30,
      2005. Refer to Note 9 for a description of the impact of FSP No. 150-5 on Acacia
      Research Corporations financial position and results of operations for the
      periods presented.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
      December 2004, the FASB issued SFAS No. 123 (revised 2004), &#8220;Share-Based
      Payments,&#8221; (&#8220;SFAS No. 123(R)&#8221;) that addresses the accounting for share-based
      payment transactions in which an enterprise receives employee services in
      exchange for (a) equity instruments of the enterprise or (b) liabilities that
      are based on the fair value of the enterprise&#8217;s equity instruments or that may
      be settled by the issuance of such equity instruments. SFAS No. 123(R) will
      require Acacia Research Corporation to measure all employee stock-based
      compensation awards using a fair-value method and record such expense in its
      consolidated and separate group financial statements.&#160; The adoption
      of SFAS
      No. 123(R) will require additional accounting related to the income tax effects
      and additional disclosure regarding the cash flow effects resulting from
      share-based payment arrangements.&#160; SFAS No. 123(R) was to be effective
      beginning in the quarter ending September 30, 2005.&#160; On April&#160;14,
      2005, the SEC announced a deferral of the effective date of SFAS No. 123(R)
      for
      calendar year companies until the beginning of 2006. In March 2005, the SEC
      issued Staff Accounting Bulletin No. 107 (&#8220;SAB 107&#8221;) regarding the SEC Staff's
      interpretation of SFAS No. 123(R) and provides the Staff's views regarding
      interactions between SFAS No. 123(R) and certain SEC rules and regulations
      and
      provides interpretations of the valuation of share-based payments for public
      companies. The effect of the adoption of SFAS No. 123(R) is expected to be
      comparable to the effect disclosed on a pro forma basis resulting from the
      application of the current fair-value recognition provisions of SFAS No. 123,
      as
      shown in Note 2 above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACQUISITION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 28, 2005, Acacia Global Acquisition Corporation, a wholly owned
      subsidiary of Acacia Research Corporation, acquired substantially all of the
      assets of Global Patent Holdings, LLC, a privately held patent holding company
      based in Northbrook, Illinois, which owned 11 patent licensing companies. The
      acquisition provided the Acacia Technologies group 100% ownership of companies
      that control 27 patent portfolios, which include 120 U.S. patents and certain
      foreign counterparts, and cover technologies used in a wide variety of
      industries. As a result of the acquisition, we have expanded and diversified
      the
      Acacia Technologies group&#8217;s revenue generating opportunities and accelerated the
      execution of the Acacia Technologies group&#8217;s business strategy of acquiring,
      developing and licensing patented technologies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition was accounted for using the purchase method of accounting. Under
      the
      purchase method of accounting, the purchase consideration is allocated to the
      assets acquired, including tangible assets, patents and other identifiable
      intangibles and liabilities assumed, based on their estimated fair market values
      at the date of acquisition. The consolidated statement of operations includes
      the results of the acquired companies beginning on January 28, 2005, the date
      of
      acquisition. The aggregate purchase consideration was approximately $25,089,000,
      including $5.0 million of cash, the issuance of 3,938,832 shares of AR-Acacia
      Technologies stock valued at $19,293,000 (net of estimated common stock
      registration costs of $212,000) and acquisition costs, including registration
      costs, of $796,000. The value of the common shares issued was determined based
      on the average market price of AR-Acacia Technologies stock, as reported on
      NASDAQ, over the 5-day period (December 13 - December 17, 2004) before and
      after
      the terms of the acquisition were agreed to and announced.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table summarizes the total purchase consideration and the allocation
      of the consideration paid to the estimated fair value of the assets acquired
      and
      liabilities assumed (in thousands):</font></div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <table cellpadding="0" cellspacing="0" width="90%">

          <tr>
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Purchase
                Consideration:</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Cash
                paid</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,000</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Fair
                value of AR-Acacia Technologies stock issued</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,293</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acquisition
                and registration costs</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">796</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #cbf9d1 solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Total
                purchase consideration</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,089</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Purchase
                Price Allocation:</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Estimated
                fair value of net tangible assets acquired at January 28, 2005
                </font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(49</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Intangible
                assets acquired - patents and patent rights</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,138</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="75%" style="BORDER-BOTTOM: #cbf9d1 solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Total</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,089</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">_________________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)
      Reflects non-cash investing activity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      was primarily responsible for determining the fair value of the tangible and
      identifiable intangible assets acquired and liabilities assumed at the date
      of
      acquisition. Management considered a number of factors, including reference
      to
      an independent valuation. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      patents and patent rights acquired were valued using a discounted cash flow
      model on a patent portfolio by portfolio basis, which estimated the future
      net
      cash flows expected to result from the licensing of each portfolio, taking
      into
      account potential infringers of the patents, usage of the underlying
      technologies, estimated license fee revenues, contingent legal fee arrangements,
      inventor royalties due to former patent holders, other estimated costs, tax
      implications and other factors. A discount rate consistent with the risks
      associated with achieving the estimated net cash flows was used to estimate
      the
      present value of future estimated net cash flows. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management&#8217;s
      valuation resulted in an estimated fair value of patent related assets acquired
      of approximately $27,000,000, resulting in approximately $1,900,000 of excess
      fair value over the cost of net assets acquired, which has been allocated as
      a
      pro rata reduction to the amounts that otherwise would have been assigned to
      the
      assets acquired, in accordance with the purchase method of accounting.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amounts
      attributable to patents and patent rights acquired are amortized using the
      straight-line method over the estimated economic useful lives of the underlying
      patents which range from two to seven years. The estimated weighted average
      useful life of amortizable patent related intangibles acquired is approximately
      six years. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition described above, Acacia Global Acquisition
      Corporation entered into a consulting agreement with the former CEO of Global
      Patent Holdings, LLC who, as a result of the acquisition transaction, is also
      a
      shareholder of Acacia Research Corporation. The agreement requires the payment
      of $2,000,000 in consulting fees over a two-year period, and certain
      reimbursable consulting related expenses, commencing on the date of acquisition.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketing,
      general and administrative expenses for the three and nine months ended
      September 30, 2005, include $274,000 and $738,000, respectively, in expenses
      related to the consulting agreement</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Consulting services to be performed consist primarily of consultation on
      intellectual property matters associated with the patents and patent rights
      acquired in the transaction. The consulting fees will be expensed in the
      consolidated statement of operations as the consulting services are rendered
      during the two-year term of the consulting agreement. Acacia Global Acquisition
      Corporation may terminate the consulting agreement for cause as provided for
      in
      the agreement. The consulting agreement also contains certain automatic
      termination provisions, including; the failure by Acacia Global Acquisition
      Corporation to make timely consulting payments in accordance with the agreement;
      a significant decrease in working capital of Acacia Research Corporation, as
      defined in the agreement; material breach of the agreement by Acacia Global
      Acquisition Corporation; and the death of the consultant. Any occurrence of
      these conditions may require the payment of all remaining consulting fees
      outstanding under the agreement within thirty days of the occurrence of the
      termination event. Acacia Research Corporation also executed an agreement
      guaranteeing Acacia Global Acquisition Corporation&#8217;s performance of its
      obligations under the consulting agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition will be treated for tax purposes as a taxable asset acquisition
      and,
      as such, Acacia Research Corporation does not expect any book/tax basis
      differences and thus, no deferred income taxes were recorded in connection
      with
      the application of the purchase method of accounting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      following unaudited pro forma combined results of operations for the interim
      period presented are provided for illustrative purposes only and assume the
      acquisition occurred as of January 1, 2005, and 2004. The unaudited pro forma
      combined financial results do not purport to be indicative of the results of
      operations for future periods or the results that actually would have been
      realized had the entities been a single entity during these periods. The
      unaudited pro forma combined results are presented in thousands, except share
      and per share information. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="19%" style="BORDER-BOTTOM: black thin solid">
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                    the Three </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Months
                    Ended</strong></font></div>
                </td>
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                <td colspan="5" valign="bottom" width="32%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
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              </tr>
              <tr>
                <td valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="19%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004 </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>(3)</strong></sup></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005 </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>(1)</strong></sup></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="19%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    revenues</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,355</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,717</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37,292</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    operating expenses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,247
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,913
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38,385
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                    income (loss)</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,892</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,196</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,093</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    other income</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">204
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">888
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">799
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                    (loss) from continuing operations before income taxes</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,688</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,308</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(294</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                    for income taxes and minority interests</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">63
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">233
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">191
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                    loss on discontinued operations</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: black thin solid">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(104</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    income (loss)</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,625</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,285</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(207</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                    forma earnings (loss) per common share:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attributable
                    to the Acacia Technologies group:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    loss</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,077</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,669</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,035</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                    and diluted loss per share</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.09</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.21</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.21</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                    average shares </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
                    Research - Acacia Technologies stock:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                    and diluted</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="18%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23,732,319
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,777,117
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23,716,652
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div>_________________</div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Results
                of operations for Global Patent Holdings, LLC were not material for
                the
                period January 1, 2005, through January 28, 2005. Pro forma adjustments
                reflect the impact of the acquisition for the 28-day period from
                January
                1, 2005 to January 28, 2005. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">There
                is no pro forma impact on earnings (loss) per share attributable
                to the
                CombiMatrix group for any periods.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(3)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">There
                is no pro forma impact on the three months ended September 30,
                2005.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMON
      STOCK PURCHASE WARRANT LIABILITY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation&#8217;s classes of common stock are subject to certain redemption
      provisions i</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">n
      the event that Acacia Research Corporation sells, transfers, assigns or
      otherwise disposes of, in one transaction or a series of related transactions,
      all or substantially all of the properties and assets attributed to either
      group. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to guidance set forth in FSP No. 150-5, which was adopted effective July 1,
      2005, Acacia Research Corporation reclassified $521,000 from redeemable equity
      to a long-term warrant liability (included in &#8220;Other liabilities&#8221;), representing
      the fair value of 283,410 contingently redeemable AR-CombiMatrix stock purchase
      warrants originally issued in May 2003 (&#8220;May 2003 warrants&#8221;) and exercisable
      through May 2008. The cumulative effect of changes in the fair value of the
      warrant liability related to the May 2003 warrants through June 30, 2005, was
      a
      net credit of $39,000, which is included in warrant charges (credits) in the
      statement of operations. Warrant charges (credits) for the three and nine months
      ended September 30, 2005 also include a net credit of $163,000 related to
      changes in the fair value of the liability related to the May 2003 warrants
      from
      July 1, 2005 through September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      long-term warrant liability at September 30, 2005 also includes $1,712,000,
      representing the fair value of the 1,596,478 contingently redeemable
      AR-CombiMatrix stock purchase warrants issued in the September 2005 equity
      financing described earlier. Warrant charges (credits) for the three and nine
      months ended September 30, 2005 includes a net charge of $39,000 related to
      changes in the fair value of the warrant liability related to the September
      2005
      warrants during the respective periods. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      fair
      value of AR-CombiMatrix stock purchase warrants was determined using the
      Black-Scholes option-pricing model, assuming weighted average risk free interest
      rates of approximately 2.34%, 3.72% and 4.18% in May 2003, June 2005 and
      September 2005, respectively, volatility of 100% in May 2005 and 88% in June
      and
      September 2005, respectively, and an expected term of 5 years for all periods.
      The warrant liability was attributed to the CombiMatrix group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>10.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMITMENTS
      AND CONTINGENCIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>CombiMatrix
      group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      October 2004, the CombiMatrix group entered into an agreement to acquire up
      to a
      one-third ownership interest in Leuchemix, Inc. (&#8220;Leuchemix&#8221;), a private drug
      development firm, which is developing several compounds for the treatment of
      leukemia and other cancers. In accordance with the terms of the purchase
      agreement, the CombiMatrix group will purchase 3,137,500 shares of Series A
      Preferred Stock of Leuchemix for a total purchase price of $4,000,000. The
      ownership interest will be acquired and paid for quarterly over the two-year
      period commencing with the fourth quarter of 2004. In accordance with the terms
      of the purchase agreement, the CombiMatrix group made scheduled investments
      totaling $1,100,000 during the nine months ended September 30, 2005, resulting
      in an ownership interest of approximately 14% as of September 30, 2005.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group will make additional investments in Leuchemix of $500,000
      in
      2005 and $2,150,000 in 2006, in accordance with the terms of the
      agreement.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      CombiMatrix group&#8217;s investment is being accounted for under the equity method as
      the CombiMatrix group has the ability to exercise significant influence over
      Leuchemix, primarily due to CombiMatrix Corporation&#8217;s representation on
      Leuchemix&#8217;s board of directors. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
      March 2004, the CombiMatrix group was awarded a two-year, $5.9 million contract
      wi</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">th
      the
      Department of Defense to further the development of the CombiMatrix group&#8217;s
      array technology for the detection of biological threat agents. Under the terms
      of the contract, the CombiMatrix group will perform research and development
      activities, as described under the contract, and will be reimbursed on a
      periodic basis for actual costs incurred to perform its obligations, plus a
      fixed fee, of up to $5.9 million. As of September 30, 2005, the biological
      threat detection contract with the Department of Defense was approximately
      85%
      complete and had approximately $700,000 of costs remaining to be incurred on
      the
      existing contract.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 30, 2002, CombiMatrix Corporation and Dr. Donald Montgomery entered
      into a settlement agreement with Nanogen, Inc. to settle all pending litigation
      between the parties. During the nine months ended September 30, 2005 and 2004,
      we recorded a net non-cash credit totaling $406,000 and a net non-cash charge
      totaling $776,000, respectively, in connection with certain anti-dilution
      provisions of the settlement agreement. The related liability reflects
      management&#8217;s estimate, as of each balance sheet date, of the fair value of
      AR-CombiMatrix stock to be issued to Nanogen, Inc. as a result of certain
      options and warrants exercised during the period, if any, and the fair value
      of
      AR-CombiMatrix stock potentially issuable to Nanogen, Inc. as of each balance
      sheet date pursuant to the anti-dilution terms of the agreement. The liability
      is adjusted at each balance sheet date for changes in the market value of the
      AR-CombiMatrix stock and is reflected as long-term until settled in equity.
      The
      anti-dilution provisions of the settlement agreement expired as of September
      30,
      2005, resulting in no liability at September 30, 2005 or in future
      periods.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to other terms of the settlement agreement, CombiMatrix Corporation
      is
      also required to make quarterly payments to Nanogen, Inc. equal to 12.5% of
      payments to CombiMatrix Corporation from sales of products developed by
      CombiMatrix Corporation and its affiliates and based on the patents that had
      been in dispute in the litigation, up to an annual maximum of $1,500,000. The
      minimum quarterly payments under the settlement agreement are $25,000 per
      quarter until the patents expire in 2018. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Royalties
      incurred under the agreement during the nine months ended September 30, 2005,
      and 2004, were $130,000 and $113,000, respectively.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acacia
      Technologies group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition of certain patents and patent rights, certain
      companies included in the Acacia Technologies group executed related agreements
      which grant to the former owners of the respective patents or patent rights,
      the
      right to receive inventor royalties based on future net license fee revenues
      (as
      defined in the respective agreements) generated by the Acacia Technologies
      group
      as a result of licensing the respective patents or patent portfolios. Inventor
      royalties paid pursuant to the agreements are expensed in the consolidated
      statement of operations in the period that the related license fee revenues
      are
      recognized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Acacia Technologies group&#8217;s licensing and enforcement
      activities, the Acacia Technologies group may retain the services of law firms
      that specialize in intellectual property licensing and enforcement and patent
      law. These law firms may be retained on a contingent fee basis in which the
      law
      firms are paid on a scaled percentage of any negotiated license fees,
      settlements or judgments awarded based on how and when the license fees,
      settlements or judgments are obtained by the Acacia Technologies group. In
      instances where the Acacia Technologies group does not recover license fees
      from
      potential infringers, no contingent legal fees are paid; however, the Acacia
      Technologies group may be liable for certain out of pocket legal costs incurred
      pursuant to the underlying legal services agreement. Legal fees advanced by
      contingent law firms that are required to be paid in the event that no license
      recoveries are obtained by the Acacia Technologies group are included in
      long-term liabilities in the statement of financial condition.</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Litigation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation is subject to claims, counterclaims and legal actions
      that
      arise in the ordinary course of business. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      believes that the ultimate liability with respect to these claims and legal
      actions, if any, will not have a material effect on our financial position,
      results of operations or cash flows</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      As
      additional information becomes available, we will assess the potential liability
      related to our pending litigation and may revise our estimates accordingly.
      Such
      revisions in our estimates of the potential liability could materially impact
      our results of operations and financial position. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Patent
        Enforcement Litigation</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
        time
        to time, companies comprising the Acacia Technologies group engage in litigation
        to enforce their patents and patent rights. In the litigation listed below,
        certain companies comprising the Acacia Technologies group are parties to
        ongoing litigation alleging infringement of certain of our patented technologies
        by the companies listed. Current patent enforcement litigation, by related
        patented technology, is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Audio/Video
        Enhancement and Synchronization Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Image
        Resolution Enhancement Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IP
        Innovation, LLC and Technology Licensing Corporation v. Lexmark International,
        Inc. United States District Court for the Northern District of Illinois.
        Filed
        10/23/02. Case No. 1:02-cv-07611.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IP
        Innovation, LLC and Technology Licensing Corporation v. Dell Computer
        Corporation. United States District Court for the Northern District of Illinois.
        Filed 5/15/03. Case No. 1:03-cv-03245.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IP
        Innovation, LLC, Technology Licensing Corporation, New Medium Technologies,
        LLC
        and AV Technologies, LLC v. Matsushita Electric Industrial Co., Ltd. and
        Panasonic Corporation of North America. United States District Court for
        the
        Northern District of Illinois. Filed 2/14/05. Case No.
        1:05-cv-00902.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
        Licensing Corporation and AV Technologies, LLC v. Thomson, Inc. United States
        District Court for the Eastern District of California. On appeal to the U.S.
        Court of Appeals for the Federal Circuit. Notice of Appeal Filed 8/23/05.
        Lower
        Court Case No. 2:03-cv-01329.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
        Medium Technologies, LLC and AV Technologies, LLC v. Barco NV and Miranda
        Technologies. United States District Court for the Northern District of
        Illinois. Filed 9/29/05. Case No. 1:05-cv-05620.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Broadcast
        Data Retrieval</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sirius
        Satellite Radio, Inc. v. Acacia Research Corporation and Acacia Global
        Acquisition Corporation. United States District Court for the Southern District
        of New York. Filed 8/24/05. Case No. 1:05-cv-07495. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Computer
        Memory Cache Coherency Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Computer
        Cache Coherency Corporation v. VIA Technologies, Inc. and Via Technologies,
        Inc.
        (USA). United States District Court for the Northern District of California.
        Filed 12/2/04. Case No. 5:05-cv-01668.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Computer
        Cache Coherency Corporation v. Intel Corporation. United States District
        Court
        for the Northern District of California. Filed 4/28/05. Case No.
        5:05-cv-01766.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Credit
        Card Fraud Protection Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        Systems Innovation, LLC and Paul N. Ware v. Gap, Inc., Racetrac Petroleum,
        Inc.
        and The Kroger Company. United States District Court for the Northern District
        of Georgia. Filed 3/3/04. Case No. 4:04-cv-00065.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        Systems Innovation, LLC and Paul N. Ware v. Williams-Sonoma, Inc., Linens
        N
        Things, Inc. and Costco Wholesale Corporation. United States District Court
        for
        the Northern District of Texas. Filed 6/30/04. Case No.
        4:04-cv-00479.</font></div>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        Systems Innovation, LLC and Paul N. Ware v. Circuit City Stores, Inc., Officemax
        Inc., Staples, Inc., Cracker Barrel Old Country Store, Inc., Fry&#8217;s Electronics,
        Inc., and Rite Aid Corporation. United States District Court for the Northern
        District of Georgia. Case No. 4:05-cv-00156. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Data
        Encryption and Product Activation</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Data
        Encryption Corporation v. Microsoft Corporation and Dell Computer Corporation.
        United States District Court for the Central District of California. Filed
        7/29/05. Case No. 2:05-cv-05531.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Digital
        Media Transmission Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with the Transfer Order issued February 24, 2005, by the Judicial
        Panel on Multidistrict Litigation, all of the following Digital Media
        Transmission Technology cases have been transferred to the Northern District
        of
        California. The lead case number is 5:05-cv-01114.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
        Media Technologies Corporation v. Comcast Cable Communications, LLC Charter
        Communications, Inc., The DirectTV Group, Inc., Echostar Communications
        Corporation, Cox Communications, Inc., Hospitality Network, Inc. (a wholly
        owned
        subsidiary of Cox that supplies hotel on-demand TV services), Mediacom, LLC,
        Armstrong Group, Arvig Communication Systems, Block Communications, Inc.,
        Cable
        America Corporation, Cable One, Inc., Cannon Valley Communications, Inc.,
        East
        Cleveland Cable TV and Communications, LLC, Loretel Cablevision, Massillon
        Cable
        TV, Inc., Mid-Continent Media, Inc., NPG Cable, Inc., Savage Communications,
        Inc., Sjoberg's Cablevision, Inc., US Cable Holdings LP, and Wide Open West,
        LLC, Time Warner Cable, Cablevision Systems Corporation, Insight Communications
        Company, Cebridge Communications and Bresnan Communications.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
        Media Technologies Corporation v. New Destiny Internet Group, Inc., Audio
        Communications Inc., VS Media Inc., Ademia Multimedia, LLC, International
        Web
        Innovations, Inc., Offendale Commercial BV, Ltd., Adult Entertainment Broadcast
        Network, Cybertrend, Inc., Lightspeed Media Corporation, Adult Revenue Services,
        Innovative Ideas International, AskCS.com, Game Link, Inc., Club Jenna, Inc.,
        Cybernet Ventures, Inc., ACMP, LLC, Global AVS, Inc. d/b/a DrewNet, ICS,
        Inc. /
        AP Net Marketing, Inc., and National A-1 Advertising. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Dynamic
        Manufacturing Modeling Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
        Technology Innovation, LLC v. Motorola, Inc. and Freescale Semiconductor,
        Inc.
        United States District Court for the Northern District of Illinois. Filed
        11/3/04. Case No. 1:04-cv-07121.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intel
        Corporation v. Information Technology Innovation, LLC. United States District
        Court for the Northern District of Illinois. Filed 7/7/05. Case No.
        1:05-cv-03951. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Interactive
        Television Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Broadcast
        Innovation, LLC and IO Research, Ltd v. Charter Communications, Inc. and
        Comcast
        Corporation. United States District Court for the District of Colorado, on
        appeal to the U.S. Court of Appeals for the Federal Court. Notice of Appeal
        Filed 9/28/04. Lower Court Case No. 1:03-cv-02223.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Broadcast
        Innovation, LLC v. Echostar Communications Corporation. United States District
        Court for the District of Colorado. Filed 11/9/01. Case No. 1:01-cv-02201.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Interstitial
        Internet Advertising</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">InternetAd
        Systems, LLC v. British Airways PLC. United States District Court for the
        Northern District of Texas. Filed 3/28/05. Case No.
        3:05-cv-00604.</font></div><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">InternetAd
        Systems, LLC v. Aerovias de Mexico, S.A. de C.V., Ace Aviation Holdings,
        Inc.,
        Alaska Airlines, Inc., ATA Airlines, Inc. and Certified Vacations Group,
        Inc.
        United States District Court for the Northern District of Texas. Filed 10/5/05.
        Case No. 3:05-cv-01969.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Microprocessor
        Enhancement Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Microprocessor
        Enhancement Corporation and Michael H. Branigin v. Texas Instruments,
        Incorporated. United States District Court for the Central District of
        California. Filed 4/7/05. Case No. 8:05-cv-00323.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Microprocessor
        Enhancement Corporation and Michael H. Branigin v. Intel Corporation. United
        States District Court for the Central District of California. Filed 8/3/05.
        Case
        No. 2:05-cv-05667.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Multi-Dimensional
        Bar Code Technology</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">VCode
        Holdings, Inc. and VData, LLC v. Boston Scientific Corporation, Stamps.com,
        Inc., and Hitachi Global Storage Technologies (Thailand), Ltd. United States
        District Court for the District of Minnesota. Filed 10/25/04. Case No.
        0:04-cv-04583.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">VCode
        Holdings, Inc. and VData, LLC v. U.S. Bank National Association, Toshiba
        Corporation, Brother Industries, Ltd., and Sato Corporation. United States
        District Court for the District of Minnesota. Filed 10/4/05. Case No.
        0:05-cv-02329. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Spreadsheet
        Automation</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Spreadsheet
        Automation Corporation v. Microsoft Corporation. United States District Court
        for the Eastern District of Texas. Filed 3/28/05. Case No. 2:05-cv-00127.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>V-Chip
        Technology </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        remaining Non-Soundview, Inc. parties in the Acacia Technologies group&#8217;s V-chip
        patent infringement lawsuit, which concluded in August 2004, filed a motion
        before the United States District Court for the District of Connecticut seeking
        reimbursement of certain attorney&#8217;s fees. On July 13, 2005, the Court entered an
        Order denying the motion in part, and granting the motion in part. The motion
        was denied with respect to Soundview Inc.&#8217;s patent infringement allegations,
        which the Court ruled were not asserted in bad faith. The motion was granted
        with respect to certain anti-trust allegations asserted subsequent to the
        Court&#8217;s ruling of non-infringement in August 2004. In October 2005, all V-chip
        related litigation activities were concluded with no material effect on our
        financial position, results of operations or cash flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Other</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;
        IP
        Innovation, LLC v. Digital Think, Inc., Docent, Inc., eCollege.Com. United
        States District Court for the Southern District of Texas. On appeal to the
        U.S.
        Court of Appeals for the Federal Circuit. Notice of Appeal Filed 12/10/04.
        Lower
        Court Case No. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4:02-cv-02031.</font></div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>11.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DISCONTINUED
      OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Results
      for the nine months ended September 30, 2005 and September 30, 2004, include
      a
      $210,000 and $104,000 charge, net of minority interests, related to estimated
      additional costs to be incurred in connection with the discontinued operations
      of Soundbreak.com (originally ceased operations in February 2001), related
      primarily to certain noncancellable lease obligations and a reduction in
      estimated amounts recoverable from existing sublease arrangements. The related
      lease obligations, which were guaranteed by Acacia Research Corporation, expired
      in August 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>12.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATING
      SEGMENT INFORMATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation has adopted the provisions of SFAS No.&#160;131,
&#8220;Disclosures about Segments of an Enterprise and Related Information.&#8221; Our chief
      operating decision maker is considered to be Acacia Research Corporation&#8217;s Chief
      Executive Officer (&#8220;CEO&#8221;). The CEO reviews and evaluates financial information
      presented on a group basis as described below. Management evaluates performance
      based on the profit or loss from continuing operations and financial position
      of
      its segments. Acacia Research Corporation has two reportable segments as
      described earlier in Note 1. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Material
      intercompany transactions and transfers have been eliminated in consolidation.
      The accounting policies of the segments are the same as those described in
      the
      summary of significant accounting policies. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Presented
      below is consolidating financial information for our reportable segments
      reflecting the businesses of the CombiMatrix group and the Acacia Technologies
      group. Earnings attributable to each group has been determined in accordance
      with accounting principles generally accepted in the United States.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="WIDTH: 100%" align="left">
        </div>
      </div>
    </div>
    <div>
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="right" colspan="19" valign="top" width="187%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidating
                    Balance Sheets<br>(In
                    thousands)</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
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          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font size="2">At
                    December 31,
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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              <tr>
                <td valign="bottom" width="27%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <tr>
                <td valign="bottom" width="27%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidated</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Group</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Group</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Eliminations</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidated</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ASSETS</strong></font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    assets:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,836</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,212</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34,048</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,750</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,735</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,176
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,485
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,434
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,129
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,200
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,329
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,042
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,021
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,063
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">121
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,424
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,545
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">121
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,424
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,545
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">79
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,215
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,294
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">79
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">329
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">408
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68,251</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">57,457</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125,708</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,058</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55,388</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(119</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,327</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    liabilities:</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                    payable, accrued <br>&#160;&#160; expenses and other</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,096</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,523</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,619</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,175</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,964</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,139</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Royalties
                    and legal fees payable</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    portion of deferred <br>&#160;&#160; revenues</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">710
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">215
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">925
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">428
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">494
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payable
                    to Acacia Technologies <br>&#160;&#160; group</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">119
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(119</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,137
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,738
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,875
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,603
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,149
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(119</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,633
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                    income taxes</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">762
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,009
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,771
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">869
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,112
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,981
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                    revenues, net of current portion</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,766
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,837
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,893
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,893
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                    liabilities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">224
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,031
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,255
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">406
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">406
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,194
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,544
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">486
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">486
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">778
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">778
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Redeemable
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AR
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62,571
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62,571
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28,808
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28,808
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                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AR
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,913
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,913
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,828
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,828
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                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62,571
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,913
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">109,484
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28,808
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,828
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75,636
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68,251</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">57,457</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125,708</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,058</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55,388</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(119</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black double">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,327</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">____________________</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">NOTE:
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></div>
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      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" colspan="20" valign="top" width="184%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidating
                    Statement of Operations<br>(In
                    thousands)</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div align="left">
          <div>
            <div>&#160;</div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td align="left" colspan="8" valign="bottom" width="26%" style="BORDER-BOTTOM: #000000 thin solid">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Acacia<br>Technologies<br>Group</strong></font></div>
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                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">&#160;

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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix<br>Group</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong><br>Consolidated</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
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                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
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                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">973</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">973</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
                        fees</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Products
                        and services</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,404
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,404
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        revenues</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,463
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,246
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,389
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,717
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        expenses:</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                        of government contract <br>&#160;&#160; revenues</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">920
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">920
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,820
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,820
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                        of product sales</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">282
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">282
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">635
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">635
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                        and development <br>&#160;&#160; expenses</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,527
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
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                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(211</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(211</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrant
                        charges (credits)</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        operating expenses</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,687
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,433
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,120
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,172
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,264
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,436
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        income (loss)</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,904</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,970</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,874</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,844</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,875</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,719</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                        income (expense):</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                        income</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">312
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">122
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">434
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">761
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">328
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,089
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                        other income</font></div>
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">312
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">334
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">762
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">126
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">888
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing operations</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">before
                        income taxes</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,592</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,948</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,540</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,082</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,749</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,831</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                        for income taxes</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">133
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">232
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing <br>operations before minority
                        interests</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,559</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,442</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,983</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,599</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                        interests</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                        from continuing operations</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,558</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,441</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,982</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,598</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Discontinued
                        operations:</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                        loss on disposal of discontinued operations</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        income (loss)</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,558</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,441</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,808</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
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          </div>
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      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
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          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div>
        <div>
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              <tr>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidating
                    Statement of Operations (Continued)<br>(In
                    thousands)</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div align="left">
          <div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                        the Three Months Ended September 30, 2004</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" colspan="8" valign="bottom" width="26%" style="BORDER-BOTTOM: #000000 thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>For
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Acacia<br>Technologies<br>Group</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
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                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Consolidated</strong></font></div>
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                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Acacia<br>Technologies<br>Group</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix<br>Group</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="8%" style="BORDER-BOTTOM: #000000 thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><strong>Consolidated</strong></font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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                    <td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues:</font></td>
                    <td width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
                    <td align="right" valign="bottom" width="7%">&#160;</td>
                    <td align="left" valign="bottom" width="1%">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                        and development and government contracts</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">685</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">685</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,905</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,905</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
                        fees</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Products
                        and services</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">214
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">214
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        revenues</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">753
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,993
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,119
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,624
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        expenses:</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,505
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81
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                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,140
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
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                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">research
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                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,323
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,274
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,597
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,489
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,780
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,269
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
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                        stock compensation amortization -</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">marketing,
                        general and administrative</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,174
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,352
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                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">274
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">399
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">375
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">822
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,197
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
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                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(90</font></div>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(90</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,238
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,433
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,671
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,832
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,621
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,453
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,998</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,680</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,678</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,327</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,498
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">171
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                        income:</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                        income</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">120
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">218
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">340
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">568
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        other income</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">120
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">218
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">340
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">568
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing <br>&#160;&#160;&#160; operations before income
                        taxes</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                        minority interests</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,878</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,582</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,460</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,987</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,726
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">739
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                        for income taxes </font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">70
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">102
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">206
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from continuing operations before minority
                        interests</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
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                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,548</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,390</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,880</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">948
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Discontinued
                        operations:</font></div>
                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
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                    <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(104</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(104</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                    </td>
                    <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,548</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,984</font></div>
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                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="7%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">844</font></div>
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                  </tr>

              </table>
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          </div>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
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      </div>
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    <div>
      <div>
        <div>
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              <tr>
                <td align="right" colspan="17" valign="top" width="178%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidating
                    Statement of Cash Flows <br>(In
                    thousands)</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended September 30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended September 30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="36%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Technologies
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Technologies
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Group</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Group</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Eliminations</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidated</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Group</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Group</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Eliminations</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidated</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    flows from operating activities:</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    income (loss) from continuing operations</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,982</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,598</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,880</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">948</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                    to reconcile net income (loss) from continuing operations to
                    net cash used
                    in operating activities:</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,631
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,667
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,080
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
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                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(23</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">725
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">725
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(107</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(103</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(107</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(102</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
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                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
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                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">113
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">342
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">119
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">574
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">733
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">213
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">930
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Royalties
                    and legal fees payable</font></div>
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                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                    revenues</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">353
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">375
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,011</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,554</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,565</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash used in operating activities from continuing
                    operations</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(340</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9,954</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,294</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,692</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8,654</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,346</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash used in operating activities from discontinued
                    operations</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(525</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(525</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(636</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(636</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash used in operating activities</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(865</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9,954</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(654</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    of available-for-sale investments</font></div>
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                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(37,665</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(19,536</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(57,201</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,948</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(44,001</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(48,949</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sale
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,350
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,910
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">59,260
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,004
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,717
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business
                    acquisition</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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                <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,572
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,572
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(234</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(234</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash attributed to the CombiMatrix group</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,969
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,969
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,746
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,746
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash provided by (used in) financing activities</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,572
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,969
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,541
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(234</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,746
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left">&#160;</div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                    of exchange rate on cash</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
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                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,086
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,227
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,313
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,776</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(851</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,627</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    and cash equivalents, beginning</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,750
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,735
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,392
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,807
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,199
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="36%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    and cash equivalents, ending</font></div>
                </td>
                <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,836</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,212</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34,048</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,616</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,956</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,572</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>

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        </div>
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      <div id="HDR">
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    <div>&#160;</div>
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      <div>
        <div>
          <div>
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          <div>&#160;</div>
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                <tr>
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                  <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <tr>
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,212</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Available-for-sale
                      investments</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,485
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,727
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">854
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">343
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventory,
                      prepaid expenses and other assets</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">411
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">229
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current assets</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,962
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,284
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property
                      and equipment, net of accumulated depreciation</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,656
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,330
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patents,
                      net of accumulated amortization of $3,895 (2005) and $3,074
                      (2004)</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,200
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,021
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,424
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,424
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,215
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">329
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">57,457</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55,388</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,523</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,964</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">215
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payable
                      to Acacia Technologies group</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">119
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current liabilities</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,738
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,149
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      income taxes</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,009
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,112
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      revenues, net of current portion</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,766
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,893
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,031
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">406
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,544
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,560
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                      and contingencies (Note 8)</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allocated
                      net worth:</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                      allocated by Acacia Research Corporation</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">169,757
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">159,056
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                      net losses</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(122,844</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(112,228</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      allocated net worth</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,913
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,828
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">57,457</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
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      <div>&#160;</div>
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        <div id="HDR">
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        </div>
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      <div>&#160;</div>
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        <div>
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                <tr>
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                <tr>
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          <div>&#160;</div>
          <div>
            <div>
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                  <tr>
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
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                        the Three Months Ended</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr>
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2005</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2004</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2005</strong></font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                        30, 2004</strong></font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues:</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                        and development contract</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,302</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Government
                        contract</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">973
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">685
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,603
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Products
                        and services</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,404
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">214
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        revenues</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,463
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">753
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,389
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,119
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        expenses:</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                        of government contract revenues</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">920
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">647
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,820
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">635
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81
                        </font></div>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,527
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,140
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,082
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,932
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                        stock compensation amortization - research <br>&#160;&#160;&#160; and
                        development</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketing,
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,840
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,274
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,621
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,780
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                        administrative</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(35</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">634
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
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                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">273
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">274
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">821
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">822
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                        settlement charges (credits)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(211</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(90</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
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                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        operating expenses</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,433
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,433
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                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,264
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,621
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                        income (loss)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                        income (expense):</font></div>
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                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                        income</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">122
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">328
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                        expense</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(100</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(202</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div>
                        <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                      </div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                        other income</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">126
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                        (loss) from operations before income taxes</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,948</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,582</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,749</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,726
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                        for income taxes</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">133
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">102
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#cbf9d1">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Division
                        net income (loss)</font></div>
                    </td>
                    <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,548</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,616</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,828</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                  </tr>
                  <tr bgcolor="#ffffff">
                    <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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        <div id="HDR">
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      <div>&#160;</div>
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        <div>
          <div>
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          <div>&#160;</div>
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                <tr>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                  <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Division
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                      net cash
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,631
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,667
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(146</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">725
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(103</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(102</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                      warrant charges (credits)</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                      legal settlement charges (credits)</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(75</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                      in assets and liabilities:</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(511</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(127</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(129</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">342
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">213
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
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                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
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                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22
                      </font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,554</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      cash used in operating activities</font></div>
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                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9,954</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8,654</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      flows from investing activities:</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                      of property and equipment</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,097</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(654</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                      of available-for-sale investments</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(19,536</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(44,001</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sale
                      of available-for-sale investments</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,910
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,717
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                      of additional interests in equity method investee</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,100</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      cash provided by (used in) investing activities</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,177
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,938</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      flows from financing activities:</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      cash flows attributed to the CombiMatrix group</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,969
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,746
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                      of exchange rate on cash</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                      (decrease) in cash and cash equivalents</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,227
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(851</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents, beginning</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,807
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents, ending</font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,212</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,956</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
          accompanying notes are an integral part of these financial
          statements.</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
    </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
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      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMBIMATRIX
      GROUP</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(A
      Division of Acacia Research Corporation)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="CombNotes">NOTES
      TO FINANCIAL STATEMENTS
      (UNAUDITED)</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>1.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF BUSINESS AND BASIS OF PRESENTATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Description
      of Business. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation is comprised of two separate divisions: the CombiMatrix
      group and the Acacia Technologies group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation&#8217;s life sciences business, referred to as the &#8220;CombiMatrix
      group,&#8221; a division of Acacia Research Corporation, is primarily comprised of
      Acacia Research Corporation&#8217;s wholly owned subsidiary, CombiMatrix Corporation
      and CombiMatrix Corporation&#8217;s wholly owned subsidiaries, CombiMatrix Molecular
      Diagnostics, Inc. and CombiMatrix K.K. and includes all corporate assets,
      liabilities and transactions related to Acacia Research Corporation&#8217;s life
      sciences business. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CombiMatrix
      group is seeking to become a broadly diversified biotechnology business, through
      the development of proprietary technologies and products in the areas of drug
      development, genetic analysis, molecular diagnostics, nanotechnology research,
      defense and homeland security markets, as well as other potential markets where
      its products could be utilized. Among the technologies being developed by the
      CombiMatrix group is a platform technology to rapidly produce customizable
      arrays, which are semiconductor-based tools for use in identifying and
      determining the roles of genes, gene mutations and proteins. This technology
      has
      a wide range of potential applications in the areas of genomics, proteomics,
      biosensors, drug discovery, drug development, diagnostics, combinatorial
      chemistry, material sciences and nanotechnology. Other technologies include
      proprietary molecular synthesis and screening methods for the discovery of
      potential new drugs. CombiMatrix Molecular Diagnostics, Inc., a wholly owned
      subsidiary located in Irvine, California, is exploring opportunities for the
      CombiMatrix group&#8217;s arrays in the field of clinical diagnostics. CombiMatrix
      K.K., a wholly owned Japanese corporation located in Tokyo, Japan, is exploring
      opportunities for CombiMatrix Corporation&#8217;s array system with pharmaceutical and
      biotechnology companies in the Asian market.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 11, 2002, Acacia Research Corporation&#8217;s stockholders voted in favor of
      a recapitalization transaction, which became effective on December 13, 2002,
      whereby Acacia Research Corporation created two new classes of common stock
      called Acacia Research-CombiMatrix common stock (&#8220;AR-CombiMatrix stock&#8221;) and
      Acacia Research-Acacia Technologies common stock (&#8220;AR-Acacia Technologies
      stock&#8221;), and divided Acacia Research Corporation&#8217;s existing Acacia Research
      Corporation common stock into shares of the two new classes of common stock.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Basis
      of Presentation. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      unaudited interim CombiMatrix group financial statements as of September 30,
      2005, and for the interim periods presented, have been prepared in accordance
      with generally accepted accounting principles for interim financial information.
      These interim financial statements should be read in conjunction with the
      CombiMatrix group financial statements and Acacia Research Corporation&#8217;s
      consolidated financial statements and notes thereto for the year ended December
      31, 2004. The year-end balance sheet data was derived from audited financial
      statements but does not include all disclosures required by accounting
      principles generally accepted in the United States of America.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group financial statements include all adjustments of a normal
      recurring nature which, in the opinion of management, are necessary for a fair
      statement of its financial position as of September 30, 2005, and the results
      of
      its operations and its cash flows for the interim periods presented. The results
      of operations for the three and nine months ended September 30, 2005, are not
      necessarily indicative of the results to be expected for the entire
      year.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-CombiMatrix</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      stock is intended to reflect the separate performance of the CombiMatrix group,
      a division of Acacia Research Corporation. The CombiMatrix group is not a
      separate legal entity. Holders of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-CombiMatrix</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      stock are stockholders of Acacia Research Corporation. As a result, holders
      of
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-CombiMatrix</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      stock are subject to all of the risks of an investment in Acacia Research
      Corporation and all of its businesses, assets and liabilities. The assets that
      Acacia Research Corporation attributes to the CombiMatrix group could be subject
      to the liabilities of the Acacia Technologies group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      CombiMatrix group financial statements taken together with the Acacia
      Technologies group financial statements comprise all of the accounts included
      in
      the corresponding consolidated financial statements of Acacia Research
      Corporation. The financial statements of the CombiMatrix group reflect the
      financial condition, results of operations, and cash flows of the businesses
      included therein. The financial statements of the CombiMatrix group include
      the
      accounts or assets of Acacia Research Corporation specifically attributed to
      the
      CombiMatrix group and were prepared using amounts included in Acacia Research
      Corporation&#8217;s consolidated financial statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Financial
      effects arising from one group that affect Acacia Research Corporation&#8217;s results
      of operations or financial condition could, if significant, affect the results
      of operations or financial condition of the other group and the market price
      of
      the class of common stock relating to the other group. Any division net losses
      of the CombiMatrix group or the Acacia Technologies group and dividends or
      distributions on, or repurchases of, AR-CombiMatrix stock or AR-Acacia
      Technologies stock or repurchases of preferred stock of Acacia Research
      Corporation will reduce the assets of Acacia Research Corporation legally
      available for payment of dividends on AR-CombiMatrix stock or AR-Acacia
      Technologies stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>2.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue
      Recognition.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      CombiMatrix group recognizes revenue in accordance with Staff Accounting
      Bulletin No. 104, &#8220;Revenue Recognition&#8221; (&#8220;SAB No. 104&#8221;) and related
      authoritative pronouncements. Revenues from multiple-element arrangements are
      accounted for in accordance with Emerging Issues Task Force (&#8220;EITF&#8221;) Issue
      00-21, &#8220;Revenue Arrangements with Multiple Deliverables.&#8221; Revenue is recognized
      when (i) persuasive evidence of an arrangement exists, (ii) all obligations
      have
      been performed pursuant to the terms of the license agreement, (iii) amounts
      are
      fixed or determinable and (iv) collectibility of amounts is reasonably
      assured.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      from multiple-element arrangements involving license fees, up-front payments
      and
      milestone payments, which are received and/or billable by the CombiMatrix group
      in connection with other rights and services that represent continuing
      obligations of the CombiMatrix group, are deferred until all of the elements
      have been delivered or until the CombiMatrix group has established objective
      and
      verifiable evidence of the fair value of the undelivered elements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      from government grants and contracts are recognized in accordance with
      Accounting Research Bulletin (&#8220;ARB&#8221;) No. 43, &#8220;Government Contracts,&#8221; and related
      pronouncements. Accordingly, revenues are recognized under the
      percentage-of-completion method of accounting, using the cost-to-cost approach
      to measure completeness at each reporting period. Under the
      percentage-of-completion method of accounting, contract revenues and expenses
      are recognized in the period that work is performed based on the percentage
      of
      actual incurred costs to estimated total contract costs. Actual contract costs
      and cost estimates include direct charges for labor and materials and indirect
      charges for labor, overhead and certain general and administrative charges.
      Contract change orders and claims are included when they can be reliably
      estimated and are considered probable. For contracts that extend over a one-year
      period, revisions in contract cost estimates, if they occur, have the effect
      of
      adjusting current period earnings applicable to performance in prior periods.
      Should current contract estimates indicate an overall future loss to be
      incurred, a provision is made for the total anticipated loss in the current
      period. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
      from the sale of products and services, including shipping and handling fees,
      are recognized when delivery has occurred or services have been rendered.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
      revenues arise from payments received in advance of the culmination of the
      earnings process. Deferred revenues expected to be recognized within the next
      twelve months are classified within current liabilities. Deferred revenues
      will
      be recognized as revenue in future periods when the applicable revenue
      recognition, criteria as described above, are met. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Inventory.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Inventory, which consists primarily of raw materials to be used in the
      production of the CombiMatrix group&#8217;s array products, is stated at the lower of
      cost or market using the first-in, first-out method.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Stock-Based
      Compensation</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Note 2 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Earnings
      Per Share Information and Stock Option and Related Option Plan
      Information</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      Earnings per share and stock option and related option plan information is
      omitted from the CombiMatrix group footnotes because AR-CombiMatrix stock is
      part of the capital structure of Acacia Research Corporation. The CombiMatrix
      group is not a separate legal entity. Holders of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-CombiMatrix</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      stock are stockholders of Acacia Research Corporation. This presentation
      reflects the fact that the CombiMatrix group does not have legally issued common
      or preferred stock and AR-CombiMatrix stock transactions are not legal
      transactions of the CombiMatrix group. Refer to the Acacia Research Corporation
      consolidated financial statements for earnings per share information for Acacia
      Research Corporation&#8217;s classes of stock, computed using the two-class method in
      accordance with SFAS No. 128, &#8220;Earnings per Share.&#8221; Refer to the Acacia Research
      Corporation consolidated financial statements for disclosures regarding Acacia
      Research Corporation&#8217;s stock option plans. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Patents
      and Goodwill and Impairment of Long-lived Assets and Goodwill.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Refer to
      Note&#160;2 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Use
      of Estimates. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      preparation of financial statements in conformity with generally accepted
      accounting principles in the United States of America requires management to
      make estimates and assumptions that affect the reported amount of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the consolidated financial statements and the reported amounts of revenues
      and
      expenses during the reporting period. Actual results could differ from these
      estimates.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RECENT
      ACCOUNTING PRONOUNCEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Note 7 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INTANGIBLE
      ASSETS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      CombiMatrix group&#8217;s only identifiable intangible assets are patents, which have
      remaining economic useful lives up to 2020. Annual aggregate amortization
      expense for each of the five fiscal years through December 31, 2009 is estimated
      to be $1,095,000 per year. At</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      September 30, 2005, and December 31, 2004, all of the CombiMatrix group&#8217;s
      acquired intangible assets other than goodwill were subject to
      amortization.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EQUITY
      FINANCINGS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      July
      2005, Acacia Research Corporation raised gross proceeds of $3,151,000 through
      the sale of 1,400,444 shares of AR-CombiMatrix stock at a price of $2.25 per
      share in a registered direct offering. Net proceeds raised of approximately
      $3,114,000, which are net of related issuance costs, were attributed to the
      CombiMatrix group. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2005, Acacia Research Corporation raised gross proceeds of $10,537,000
      through the sale of 6,385,907 shares of AR-CombiMatrix stock and 1,596,478
      AR-CombiMatrix stock purchase warrants at a price of $1.65 per unit in a
      registered direct offering. Each unit consisted of one share of AR-CombiMatrix
      stock and one-quarter of a five-year AR-CombiMatrix stock purchase warrant.
      Each
      full AR-CombiMatrix stock purchase warrant entitles the holder to purchase
      a
      share of AR-CombiMatrix stock at a price of $2.40 per share and is exercisable
      immediately upon issue. Net proceeds raised of approximately $9,707,000, which
      are net of related issuance costs, were attributed to the CombiMatrix group.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      April
      2004, Acacia Research Corporation raised gross proceeds of $15,000,000 through
      the sale of 3,000,000 shares of AR-CombiMatrix stock at a price of $5.00 per
      share in a registered direct offering. Net proceeds raised of approximately
      $13,715,000, which are net of related issuance costs, were attributed to the
      CombiMatrix group.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
      from these offerings are being used for general working capital purposes. All
      of
      the shares of stock were offered pursuant to an effective registration statement
      previously filed with the Securities and Exchange Commission</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RESEARCH
      AND DEVELOPMENT CONTRACTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      August
      2004, the CombiMatrix group received a $1,000,000 upfront payment from Furuno
      Electric Co., LTD (&#8220;Furuno&#8221;) as part of a multi-year collaboration agreement to
      develop a bench-top array synthesizer for commercial applications. In 2003,
      the
      CombiMatrix group received upfront and milestone payments from Toppan Printing
      Co., LTD. (&#8220;Toppan&#8221;) totaling $2,400,000, pursuant to a multi-year collaboration
      and supply agreement to develop and manufacture arrays using the CombiMatrix
      group&#8217;s proprietary electrochemical detection approach. The payments received
      from Furuno and Toppan are included in deferred revenues at September 30, 2005,
      and December 31, 2004, in accordance with the CombiMatrix group&#8217;s revenue
      recognition policies for multiple-element arrangements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2004, the CombiMatrix group completed all phases of its research and development
      agreement with Roche Diagnostics, GmbH (&#8220;Roche&#8221;). As a result of completing all
      of its obligations under this agreement and in accordance with the CombiMatrix
      group&#8217;s revenue recognition policies for multiple-element arrangements, the
      CombiMatrix group recognized all previously deferred Roche related contract
      revenues totaling $17,302,000 during the first quarter of 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMON
      STOCK PURCHASE WARRANT LIABILITY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to guidance set forth in FSP No. 150-5, which was adopted effective July 1,
      2005, Acacia Research Corporation reclassified $521,000 from redeemable equity
      to a long-term warrant liability (included in &#8220;Other liabilities&#8221;), representing
      the fair value of 283,410 contingently redeemable AR-CombiMatrix stock purchase
      warrants originally issued in May 2003 (&#8220;May 2003 warrants&#8221;) and exercisable
      through May 2008. The cumulative effect of changes in the fair value of the
      warrant liability related to the May 2003 warrants through June 30, 2005 was
      a
      net credit of $39,000, which is included in warrant charges (credits) in the
      statement of operations. Warrant charges (credits) for the three and nine months
      ended September 30, 2005 also include a net credit of $163,000 related to
      changes in the fair value of the liability related to the May 2003 warrants
      from
      July 1, 2005 through September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      long-term warrant liability at September 30, 2005 also includes $1,712,000,
      representing the fair value of the 1,596,478 contingently redeemable
      AR-CombiMatrix stock purchase warrants issued in the September 2005 equity
      financing described earlier. Warrant charges (credits) for the three and nine
      months ended September 30, 2005 includes a net charge of $39,000 related to
      changes in the fair value of the warrant liability related to the September
      2005
      warrants during the respective periods. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      warrant liability was attributed to the CombiMatrix group. Refer to Note&#160;9
      to the Acacia Research Corporation consolidated financial statements included
      elsewhere herein for additional information.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMITMENTS
      AND CONTINGENCIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      October 2004, the CombiMatrix group entered into an agreement to acquire up
      to a
      one-third ownership interest in Leuchemix, Inc. (&#8220;Leuchemix&#8221;), a private drug
      development firm, which is developing several compounds for the treatment of
      leukemia and other cancers. In accordance with the terms of the purchase
      agreement, the CombiMatrix group will purchase 3,137,500 shares of Series A
      Preferred Stock of Leuchemix for a total purchase price of $4,000,000. The
      ownership interest will be acquired and paid for quarterly over the two-year
      period commencing with the fourth quarter of 2004. In accordance with the terms
      of the purchase agreement, the CombiMatrix group made scheduled investments
      totaling $1,100,000 during the nine months ended September 30, 2005, resulting
      in an ownership interest of approximately 14% as of September 30, 2005. The
      CombiMatrix group will make additional investments in Leuchemix of $500,000
      in
      2005 and $2,150,000 in 2006, in accordance with the terms of the agreement.
      The
      CombiMatrix group&#8217;s investment is being accounted for under the equity method as
      the CombiMatrix group has the ability to exercise significant influence over
      Leuchemix, primarily due to CombiMatrix Corporation&#8217;s representation on
      Leuchemix&#8217;s board of directors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
      March 2004, the CombiMatrix group was awarded a two-year, $5.9 million contract
      wi</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">th
      the
      Department of Defense to further the development of the CombiMatrix group&#8217;s
      array technology for the detection of biological threat agents. Under the terms
      of the contract, the CombiMatrix group will perform research and development
      activities, as described under the contract, and will be reimbursed on a
      periodic basis for actual costs incurred to perform its obligations, plus a
      fixed fee, of up to $5.9 million. As of September 30, 2005, the biological
      threat detection contract with the Department of Defense was approximately
      85%
      complete and had approximately $700,000 of costs remaining to be incurred on
      the
      existing contract.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 30, 2002, CombiMatrix Corporation and Dr. Donald Montgomery entered
      into a settlement agreement with Nanogen, Inc. to settle all pending litigation
      between the parties. During the nine months ended September 30, 2005 and 2004,
      we recorded a net non-cash credit totaling $406,000 and a net non-cash charge
      totaling $776,000, respectively, in connection with certain anti-dilution
      provisions of the settlement agreement. The related liability reflects
      management&#8217;s estimate, as of each balance sheet date, of the fair value of
      AR-CombiMatrix stock to be issued to Nanogen, Inc. as a result of certain
      options and warrants exercised during the period, if any, and the fair value
      of
      AR-CombiMatrix stock potentially issuable to Nanogen, Inc. as of each balance
      sheet date pursuant to the anti-dilution terms of the agreement. The liability
      is adjusted at each balance sheet date for changes in the market value of the
      AR-CombiMatrix stock and is reflected as long-term until settled in equity.
      The
      anti-dilution provisions of the settlement agreement expired as of September
      30,
      2005, resulting in no liability at September 30, 2005 or in future
      periods.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to other terms of the settlement agreement, CombiMatrix Corporation
      is
      also required to make quarterly payments to Nanogen, Inc. equal to 12.5% of
      payments to CombiMatrix Corporation from sales of products developed by
      CombiMatrix Corporation and its affiliates and based on the patents that had
      been in dispute in the litigation, up to an annual maximum of $1,500,000. The
      minimum quarterly payments under the settlement agreement are $25,000 per
      quarter until the patents expire in 2018. Royalties incurred under the agreement
      during the nine months ended September 30, 2005, and 2004, were $130,000 and
      $113,000, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      CombiMatrix group is subject to claims and legal actions that arise in the
      ordinary course of business. Management believes that the ultimate liability
      with respect to these claims and legal actions, if any, will not have a material
      effect on the CombiMatrix group&#8217;s financial position, results of operations or
      cash flows.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="right" colspan="4" valign="top" width="99%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ATGfins">ACACIA
                    TECHNOLOGIES GROUP</a></strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="4" valign="top" width="99%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(A
                    Division of Acacia Research Corporation)</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="4" valign="top" width="99%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ARBalance">BALANCE
                    SHEETS</a></strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="4" valign="top" width="99%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(In
                    thousands)</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="4" valign="top" width="99%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font size="2">(Unaudited)</font></strong>&#160;</div>
                </td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                    31,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    assets:</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    and cash equivalents</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,836</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,750</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                    investments</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,176
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,896
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                    receivable</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">668
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">193
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                    expenses and other assets</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,116
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">754
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Receivable
                    from CombiMatrix group</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">119
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    current assets</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,796
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,712
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property
                    and equipment, net of accumulated depreciation</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">126
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patents,
                    net of accumulated amortization of $5,270 (2005) and $1,684
                    (2004)</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,129
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,042
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">121
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">121
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                    assets</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">79
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">79
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68,251</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,058</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES
                    AND ALLOCATED NET WORTH</strong></font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    liabilities:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                    payable and accrued expenses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,096</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,175</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Royalties
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,331
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">710
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">428
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                    current liabilities</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,137
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,603
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">762
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">869
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                    revenues, net of current portion</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                    liabilities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">224
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    liabilities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,194
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,472
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                    interests</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">486
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">778
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                    and contingencies (Note 7)</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allocated
                    net worth:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                    allocated by Acacia Research Corporation</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">143,772
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104,817
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                    net losses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(81,201</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(76,009</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    allocated net worth</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62,571
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28,808
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68,251</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33,058</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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    <div>&#160;</div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div id="HDR">
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    <div>&#160;</div>
    <div>
      <div>
        <div>
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              <tr>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
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              <tr>
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              <tr>
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              <tr>
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              <tr>
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        <div>&#160;</div>
        <div>
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              <tr>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    revenues</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                    expenses:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketing,
                    general and administrative expenses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,990
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,323
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,359
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,489
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,076
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,174
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,173
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,352
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contingent
                    legal fees and inventor royalties expense - patents</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,939
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,706
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,334
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,586
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">375
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,687
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,238
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,172
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,832
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                    loss</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,904</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,998</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,844</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,327</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">312
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">120
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">761
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">340
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">120
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">340
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                      minority interests</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                    for income taxes</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                      from continuing operations before minority interests</font></div>
                  </div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,559</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,983</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,883</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                    interests</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                    from continuing operations</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,558</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,982</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,880</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Discontinued
                    operations:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(104</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Division
                    net loss</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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    <div>&#160;</div>
    <div>&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
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        statements.</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="3">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="right" colspan="6" valign="top" width="104%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
                    TECHNOLOGIES GROUP</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="6" valign="top" width="104%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(A
                    Division of Acacia Research Corporation)</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="6" valign="top" width="104%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="ARSofCash">STATEMENTS
                    OF CASH FLOWS</a></strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="6" valign="top" width="104%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(In
                    thousands)</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="right" colspan="6" valign="top" width="104%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font size="2">(Unaudited)</font></strong>&#160;</div>
                </td>
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          </table>
        </div>
        <div>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    flows from operating activities:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Division
                    net loss from continuing operations</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,982</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,880</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                    to reconcile division net loss from continuing operations <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                    <br>net cash used in operating activities:</font></font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                    and amortization</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,629
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">413
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                    interests</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                    stock compensation</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                    tax benefit</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(107</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(107</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-cash
                    impairment charge</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                    in assets and liabilities, excluding effect of business
                    acquisitions:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                    receivable</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(475</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(51</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left">&#160;</div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                    operations</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                    cash used in operating activities</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(865</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(65</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(67</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                    of available-for-sale investments</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(37,665</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,948</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,350
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,004
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business
                    acquisition</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,796</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patent
                    acquisition costs</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(445</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash used in investing activities from continued
                    operations</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,621</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Decrease
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,086
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,776</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,750
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,392
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,836</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,616</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
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    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
        accompanying notes are an integral part of these financial
        statements.</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="1">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
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      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>ACACIA
      TECHNOLOGIES GROUP</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>(A
      Division of Acacia Research Corporation)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><a name="ARNotes">NOTES
      TO FINANCIAL STATEMENTS (UNAUDITED)</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>1.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF BUSINESS AND BASIS OF PRESENTATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Description
      of Business. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation&#8217;s continuing operations are comprised of two separate
      divisions: the Acacia Technologies group and the CombiMatrix group.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation&#8217;s intellectual property licensing and enforcement business,
      referred to as the &#8220;Acacia Technologies group,&#8221; a division of Acacia Research
      Corporation, is primarily comprised of certain of Acacia Research Corporation&#8217;s
      wholly owned subsidiaries and limited liability companies including: Acacia
      Global Acquisition Corporation, Acacia Media Technologies Corporation, Acacia
      Patent Acquisition Corporation, Acacia Technologies Services Corporation, AV
      Technologies LLC, Broadcast Innovation LLC, Computer Cache Coherency
      Corporation, Computer Docking Station Corporation, Data Encryption Corporation,
      Data Innovation LLC, Financial Services Innovation LLC, Information Technology
      Innovation LLC, InternetAd LLC, IP Innovation LLC, KY Data Systems LLC,
      Microprocessor Enhancement Corporation, New Medium LLC, TechSearch LLC, VData
      LLC, Soundview Technologies, Inc. and Spreadsheet Automation Corporation, and
      also includes all corporate assets, liabilities, and related transactions of
      Acacia Research Corporation attributed to Acacia Research Corporation&#8217;s
      intellectual property licensing and enforcement business. See Note 6 for
      information on our recent business acquisition.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group develops, acquires, and licenses patented
      technologies.&#160; Acacia controls 33 patent portfolios, which include over
      130
      U.S. patents, and certain foreign counterparts, covering technologies used
      in a
      wide variety of industries including Audio/Video Enhancement &amp;
      Synchronization, Broadcast Data Retrieval, Computer Memory Cache Coherency,
      Credit Card Fraud Protection, Data Encryption &amp; Product Activation, Digital
      Media Transmission (&#8220;DMT&#174;&#8221;), Digital Ink Jet Printing, Digital Video Production,
      Dynamic Manufacturing Modeling, Enhanced Internet Navigation, High Resolution
      Optics, Image Resolution Enhancement, Hearing Aid ECS, Interactive Data Sharing,
      Interactive Television, Interstitial Internet Advertising, Laptop Connectivity,
      Microprocessor Enhancement, Multi-Dimensional Bar Codes, Network Data Back-Up,
      Resource Scheduling, Rotational Video Imaging and Spreadsheet
      Automation.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 11, 2002, Acacia Research Corporation&#8217;s stockholders voted in favor of
      a recapitalization transaction, which became effective on December 13, 2002,
      whereby Acacia Research Corporation created two new classes of common stock
      called Acacia Research-CombiMatrix common stock (&#8220;AR-CombiMatrix stock&#8221;) and
      Acacia Research-Acacia Technologies common stock (&#8220;AR-Acacia Technologies
      stock&#8221;), and divided Acacia Research Corporation&#8217;s existing Acacia Research
      Corporation common stock into shares of the two new classes of common stock.
      </font></div>
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      of Presentation.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      unaudited interim Acacia Technologies group financial statements as of September
      30, 2005, and for the interim periods presented, have been prepared in
      accordance with generally accepted accounting principles for interim financial
      information. These interim financial statements should be read in conjunction
      with the Acacia Technologies group financial statements and Acacia Research
      Corporation&#8217;s consolidated financial statements and notes thereto for the year
      ended December 31, 2004. The year-end balance sheet data was derived from
      audited financial statements but does not include all disclosures required
      by
      accounting principles generally accepted in the United States of
      America.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group financial statements include all adjustments of a
      normal recurring nature which, in the opinion of management, are necessary
      for a
      fair statement of its financial position as of September 30, 2005, and the
      results of its operations and its cash flows for the interim periods presented.
      The results of operations for the three and nine months ended September 30,
      2005, are not necessarily indicative of the results to be expected for the
      entire year.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Technologies stock is intended to reflect the separate performance of the Acacia
      Technologies group, a division of Acacia Research Corporation. The Acacia
      Technologies group is not a separate legal entity. Holders of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Technologies stock are stockholders of Acacia Research Corporation. As a result,
      holders of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Technologies stock are subject to all of the risks of an investment in Acacia
      Research Corporation and all of its businesses, assets and liabilities. The
      assets Acacia Research Corporation attributes to Acacia Technologies group
      could
      be subject to the liabilities of the CombiMatrix group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group financial statements taken together with the
      CombiMatrix group financial statements comprise all of the accounts included
      in
      the corresponding consolidated financial statements of Acacia Research
      Corporation. The financial statements of Acacia Technologies group reflect
      the
      financial condition, results of operations, and cash flows of the businesses
      included therein. The financial statements of the Acacia Technologies group
      include the accounts or assets of Acacia Research Corporation specifically
      attributed to the Acacia Technologies group and were prepared using amounts
      included in Acacia Research Corporation&#8217;s consolidated financial statements.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Financial
      effects arising from one group that affect Acacia Research Corporation&#8217;s results
      of operations or financial condition could, if significant, affect the results
      of operations or financial condition of the other group and the market price
      of
      the class of common stock relating to the other group. Any division net losses
      of the CombiMatrix group or the Acacia Technologies group and dividends or
      distributions on, or repurchases of, AR-CombiMatrix stock or AR-Acacia
      Technologies stock or repurchases of preferred stock of Acacia Research
      Corporation will reduce the assets of Acacia Research Corporation legally
      available for payment of dividends on AR-CombiMatrix stock or AR-Acacia
      Technologies stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>2.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revision
      in the Classification of Certain Securities</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In
      connection with the preparation of Acacia Research Corporation&#8217;s Annual Report
      on Form 10-K for the year ended December 31, 2004, we concluded that it was
      appropriate to classify the Acacia Technologies group&#8217;s auction rate municipal
      bonds and variable rate municipal demand notes as current investments.
      &#160;Previously, such investments had been classified as cash and cash
      equivalents. Accordingly, the Acacia Technologies group has revised its prior
      classification to report these securities as current investments in its
      Consolidated Balance Sheet as of September 30, 2004. &#160;The Acacia
      Technologies group has also made corresponding adjustments to its Consolidated
      Statement of Cash Flows for the nine months ended September 30, 2004, to reflect
      the gross purchases and sales of these securities as investing activities rather
      than as a component of cash and cash equivalents. &#160;This change in
      classification does not affect previously reported cash flows from operations
      or
      from financing activities in the Acacia Technology group&#8217;s previously reported
      Consolidated Statements of Cash Flows, or previously reported Consolidated
      Statements of Income for any period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      September 30, 2004, and December 31, 2003, before this revision in
      classification, $11,750,000 and $7,750,000, respectively, of these current
      investments were classified as cash and cash equivalents on the Acacia
      Technologies group&#8217;s Consolidated Balance Sheets. For the nine months ended
      September 30, 2004, before this revision in classification, net cash used in
      investing activities related to these current investments of $4,000,000, net,
      were included in cash and cash equivalents in the Acacia Technologies group&#8217;s
      Consolidated Statement of Cash Flows.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue
      Recognition</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Under
      the terms of its license agreements, the Acacia Technologies group grants
      non-exclusive licenses for the use of its patented technologies. In general,
      pursuant to the terms of the Acacia Technologies group&#8217;s agreements with its
      licensees, upon the grant of the licenses, the Acacia Technologies group has
      no
      further obligations with respect to the licenses granted. License fees paid
      to
      and recognized as revenue by the Acacia Technologies group are non-refundable.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      generated from license agreements are generally accrued and recognized as
      revenue in the period earned, provided that amounts are fixed or determinable
      and collectibility is reasonably assured. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      license agreements provide for the calculation of license fees based on a
      licensee&#8217;s actual quarterly sales or actual per unit activity, applied to a
      contractual royalty rate. Licensees that pay license fees on a quarterly basis
      generally report actual quarterly sales or actual per unit activity information
      and related quarterly license fees due to the Acacia Technologies group within
      30 to 45 days after the end of the quarter in which such sales or activity
      takes
      place. Consequently, the Acacia Technologies group recognizes revenue from
      these
      licensing agreements on a three-month lag basis, in the quarter following the
      quarter of sales or per unit activity, provided amounts are fixed or
      determinable and collectibility is reasonably assured. The lag method described
      above allows for the receipt of licensee royalty reports prior to the
      recognition of revenue.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      license agreements provide for the payment of a minimum upfront annual license
      fee at the inception of each annual license term. Minimum upfront annual license
      fees are generally determined based on a licensee&#8217;s estimated annual sales or a
      licensee&#8217;s base level of per unit activity. These minimum upfront annual license
      fee payments are deferred and amortized to revenue on a straight-line basis
      over
      the annual license term. To the extent actual annual royalties, determined
      and
      reported in accordance with the terms of the respective agreements, exceed
      the
      minimum upfront annual license fees paid, the additional royalties are
      recognized in revenue in the quarter following the quarter in which the base
      per
      unit activity was exceeded or the quarter following the annual license term,
      depending on the terms of the respective agreement, provided that amounts are
      fixed or determinable and collectibility is reasonably assured. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      license agreements provide for the payment of contractually determined paid-up
      license fees in consideration for the grant of a non-exclusive, retroactive
      and
      future license to manufacture and/or sell products covered by the Acacia
      Technologies group&#8217;s patented technologies. Certain of these agreements also
      provide for future royalties or additional required payments based on future
      activities. The execution of these license agreements may also result in the
      dismissal of any pending litigation. Pursuant to the terms of these agreements,
      the Acacia Technologies group has no further obligation with respect to the
      grant of the non-exclusive retroactive and future license, including no express
      or implied obligation on the Acacia Technologies group&#8217;s part to maintain or
      upgrade the technology, or provide future support or services. Generally, the
      agreements provide for the grant of the license upon execution of the agreement.
      As such, the earnings process is generally complete upon the execution of the
      agreement, and revenue is recognized upon execution of the agreement, when
      collectibility is reasonably assured, and all other revenue recognition criteria
      have been met.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">License
      fee payments received by the Acacia Technologies group that do not meet the
      revenue recognition criteria described above are deferred until the revenue
      recognition criteria are met. The Acacia Technologies group assesses collection
      of accrued license fees based on a number of factors, including past transaction
      history and credit-worthiness. If it is determined that collection is not
      reasonably assured, the fee is recognized when collectibility becomes reasonably
      assured, assuming all other revenue recognition criteria have been met, which
      is
      generally upon receipt of cash.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      result of the Acacia Technologies group&#8217;s licensing and any related intellectual
      property enforcement activities, the Acacia Technologies group may recognize
      royalty revenues that relate to prior period activities of our licensees.
      Differences between amounts initially recognized and amounts subsequently
      audited or reported as an adjustment to those amounts are recognized in the
      period the adjustment is determined as a change in accounting
      estimate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Stock-Based
      Compensation</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Note&#160;2 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>Earnings
      Per Share Information and Stock Option and Related Option Plan
      Information</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      Earnings per share and stock option and related option plan information is
      omitted from the Acacia Technologies group footnotes because AR-Acacia
      Technologies stock is part of the capital structure of Acacia Research
      Corporation. The Acacia Technologies group is not a separate legal entity.
      Holders of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AR-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Technologies stock are stockholders of Acacia Research Corporation. This
      presentation reflects the fact that the Acacia Technologies group does not
      have
      legally issued common or preferred stock and AR-Acacia Technologies stock
      transactions are not legal transactions of the Acacia Technologies group. Refer
      to the Acacia Research Corporation consolidated financial statements for
      earnings per share information for Acacia Research Corporation&#8217;s classes of
      stock, computed using the two-class method in accordance with SFAS No. 128,
      &#8220;Earnings per Share.&#8221; Refer to the Acacia Research Corporation consolidated
      financial statements for disclosures regarding Acacia Research Corporation&#8217;s
      stock option plans. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Patents
      and Goodwill, Impairment of Long-lived Assets and Goodwill and Business
      Acquisitions.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Refer to
      Note&#160;2 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Use
      of Estimates. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      preparation of financial statements in conformity with generally accepted
      accounting principles in the United States of America requires management to
      make estimates and assumptions that affect the reported amount of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the consolidated financial statements and the reported amounts of revenues
      and
      expenses during the reporting period. Actual results could differ from these
      estimates.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RECENT
      ACCOUNTING PRONOUNCEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Note&#160;7 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INTANGIBLE
      ASSETS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acacia
      Technologies group&#8217;s only identifiable intangible assets are patents and patent
      rights which have remaining economic useful lives of between 2 and 7 years.
      The
      weighted average remaining economic useful life of the Acacia Technologies
      group&#8217;s patents is approximately 5 years. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annual
      aggregate amortization expense for each of the five fiscal years through
      December 31, 2009 is estimated to be $4,925,000 in 2005, $5,350,000 in 2006,
      $5,298,000 in 2007, $3,975,000 in 2008 and $3,524,000 in 2009</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      September 30, 2005, and December 31, 2004, all of the Acacia Technologies
      group&#8217;s acquired intangible assets other than goodwill were subject to
      amortization. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Note
      6 for additions to patent related intangibles during the nine months ended
      September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.
      </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EQUITY
      FINANCING</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      February 2005, Acacia Research Corporation raised gross proceeds of $19,600,000
      through the sale of 3,500,000 shares of AR-Acacia Technologies stock at a price
      of $5.60 per share in a registered direct offering. Net proceeds raised of
      approximately $19,532,000, which are net of related issuance costs, were
      attributed to the Acacia Technologies group and is being used for general
      working capital purposes. The shares of AR-Acacia Technologies stock were
      offered pursuant to an effective registration statement previously filed with
      the Securities and Exchange Commission.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACQUISITION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 28, 2005, Acacia Global Acquisition Corporation, a wholly owned
      subsidiary of Acacia Research Corporation, acquired substantially all of the
      assets of Global Patent Holdings, LLC, a privately held patent holding company
      based in Northbrook, Illinois, which owned 11 patent licensing companies. The
      acquisition provided the Acacia Technologies group 100% ownership of companies
      that control 27 patent portfolios, which include 120 U.S. patents and certain
      foreign counterparts, and cover technologies used in a wide variety of
      industries. As a result of the acquisition, we have expanded and diversified
      the
      Acacia Technologies group&#8217;s revenue generating opportunities and accelerated the
      execution of the Acacia Technologies group&#8217;s business strategy of acquiring,
      developing and licensing patented technologies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition was accounted for using the purchase method of accounting. Under
      the
      purchase method of accounting, the purchase consideration is allocated to the
      assets acquired, including tangible assets, patents and other identifiable
      intangibles and liabilities assumed, based on their estimated fair market values
      at the date of acquisition. The consolidated statement of operations includes
      the results of the acquired companies beginning on January 28, 2005, the date
      of
      acquisition. The aggregate purchase consideration was approximately $25,089,000,
      including $5.0 million of cash, the issuance of 3,938,832 shares of AR-Acacia
      Technologies stock valued at $19,293,000 (net of estimated common stock
      registration costs of $212,000) and acquisition costs, including registration
      costs, of $796,000. The value of the common shares issued was determined based
      on the average market price of AR-Acacia Technologies stock, as reported on
      NASDAQ, over the 5-day period (December 13 - December 17, 2004) before and
      after
      the terms of the acquisition were agreed to and announced.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table summarizes the total purchase consideration and the allocation
      of the consideration paid to the estimated fair value of the assets acquired
      and
      liabilities assumed (in thousands):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <table cellpadding="0" cellspacing="0" width="90%">

          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Purchase
                Consideration:</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Cash
                paid</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,000</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Fair
                value of AR-Acacia Technologies stock issued</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,293</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Acquisition
                and registration costs</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">796</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #cbf9d1 solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Total
                purchase consideration</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,089</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Purchase
                Price Allocation:</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Estimated
                fair value of net tangible assets acquired at January 28, 2005
                </font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(49</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Intangible
                assets acquired - patents and patent rights</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,138</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="65%" style="BORDER-BOTTOM: #cbf9d1 solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Total</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,089</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">__________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)
      Reflects non-cash investing activity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      was primarily responsible for determining the fair value of the tangible and
      identifiable intangible assets acquired and liabilities assumed at the date
      of
      acquisition. Management considered a number of factors, including reference
      to
      an independent valuation. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      patents and patent rights acquired were valued using a discounted cash flow
      model on a patent portfolio by portfolio basis, which estimated the future
      net
      cash flows expected to result from the licensing of each portfolio, taking
      into
      account potential infringers of the patents, usage of the underlying
      technologies, estimated license fee revenues, contingent legal fee arrangements,
      inventor royalties due to former patent holders, other estimated costs, tax
      implications and other factors. A discount rate consistent with the risks
      associated with achieving the estimated net cash flows was used to estimate
      the
      present value of future estimated net cash flows. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management&#8217;s
      valuation resulted in an estimated fair value of patent related assets acquired
      of approximately $27,000,000, resulting in approximately $1,900,000 of excess
      fair value over the cost of net assets acquired, which has been allocated as
      a
      pro rata reduction to the amounts that otherwise would have been assigned to
      the
      assets acquired, in accordance with the purchase method of accounting.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amounts
      attributable to patents and patent rights acquired are amortized using the
      straight-line method over the estimated economic useful lives of the underlying
      patents which range from two to seven years. The estimated weighted average
      useful life of amortizable patent related intangibles acquired is approximately
      6 years. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition described above, Acacia Global Acquisition
      Corporation entered into a consulting agreement with the former CEO of Global
      Patent Holdings, LLC who, as a result of the acquisition transaction, is also
      a
      shareholder of Acacia Research Corporation. The agreement requires the payment
      of $2,000,000 in consulting fees over a two-year period, and certain
      reimbursable consulting related expenses, commencing on the date of acquisition.
      Marketing, general and administrative expenses for the three and nine months
      ended September 30, 2005, include $274,000 and $738,000, respectively, in
      expenses related to the consulting agreement. Consulting services to be
      performed consist primarily of consultation on intellectual property matters
      associated with the patents and patent rights acquired in the transaction.
      The
      consulting fees will be expensed in the consolidated statement of operations
      as
      the consulting services are rendered during the two-year term of the consulting
      agreement. Acacia Global Acquisition Corporation may terminate the consulting
      agreement for cause as provided for in the agreement. The consulting agreement
      also contains certain automatic termination provisions, including; the failure
      by Acacia Global Acquisition Corporation to make timely consulting payments
      in
      accordance with the agreement; a significant decrease in working capital of
      Acacia Research Corporation, as defined in the agreement; material breach of
      the
      agreement by Acacia Global Acquisition Corporation; and the death of the
      consultant. Any occurrence of these conditions may require the payment of all
      remaining consulting fees outstanding under the agreement within thirty days
      of
      the occurrence of the termination event. Acacia Research Corporation also
      executed an agreement guaranteeing Acacia Global Acquisition Corporation&#8217;s
      performance of its obligations under the consulting agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition will be treated for tax purposes as a taxable asset acquisition
      and,
      as such, Acacia Research Corporation does not expect any book/tax basis
      differences and thus, no deferred income taxes were recorded in connection
      with
      the application of the purchase method of accounting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Note
      8 to the Acacia Research Corporation consolidated financial statements for
      the
      unaudited pro forma combined results of operations related to the acquisition
      for the interim periods presented.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMMITMENTS
      AND CONTINGENCIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition of certain patents and patent rights, certain
      companies included in the Acacia Technologies group executed related agreements
      which grant to the former owners of the respective patents or patent rights,
      the
      right to receive inventor royalties based on future net license fee revenues
      (as
      defined in the respective agreements) generated by the Acacia Technologies
      group
      as a result of licensing the respective patents or patent portfolios. Inventor
      royalties paid pursuant to the agreements are expensed in the consolidated
      statement of operations in the period that the related license fee revenues
      are
      recognized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Acacia Technologies group&#8217;s licensing and enforcement
      activities, the Acacia Technologies group may retain the services of law firms
      that specialize in intellectual property licensing and enforcement and patent
      law. These law firms may be retained on a contingent fee basis in which the
      law
      firms are paid on a scaled percentage of any negotiated license fees,
      settlements or judgments awarded based on how and when the license fees,
      settlements or judgments are obtained by the Acacia Technologies group. In
      instances where the Acacia Technologies group does not recover license fees
      from
      potential infringers, no contingent legal fees are paid; however, the Acacia
      Technologies group may be liable for certain out of pocket legal costs incurred
      pursuant to the underlying legal services agreement. Legal fees advanced by
      contingent law firms that are required to be paid in the event that no license
      recoveries are obtained by the Acacia Technologies group are included in
      long-term liabilities in the statement of financial condition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Litigation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group is subject to claims, counterclaims and legal actions
      that arise in the ordinary course of business. Management believes that the
      ultimate liability with respect to these claims and legal actions, if any,
      will
      not have a material effect on the Acacia Technologies group&#8217;s financial
      position, results of operations or cash flows. From time to time, companies
      comprising the Acacia Technologies group engage in litigation to enforce their
      patents and patent rights. Refer to Note 10 to the Acacia Research Corporation
      consolidated financial statements contained elsewhere herein for a summary
      of
      current patent enforcement litigation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      remaining non-Soundview, Inc. parties in the Acacia Technologies group&#8217;s V-chip
      patent infringement lawsuit, which concluded in August 2004, filed a motion
      before the United States District Court for the District of Connecticut seeking
      reimbursement of certain attorney&#8217;s fees. On July 13, 2005, the Court entered an
      Order denying the motion in part, and granting the motion in part. The motion
      was denied with respect to Soundview Inc.&#8217;s patent infringement allegations,
      which the Court ruled were not asserted in bad faith. The motion was granted
      with respect to certain anti-trust allegations asserted subsequent to the
      Court&#8217;s ruling of non-infringement in August 2004. In October 2005, all V-chip
      related litigation activities were concluded with no material effect on the
      Acacia Technologies group&#8217;s financial position, results of operations or cash
      flows. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9.7pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DISCONTINUED
      OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Results
      for the nine months ended September 30, 2005 and September 30, 2004, include
      a
      $210,000 and $104,000 charge, net of minority interests, related to estimated
      additional costs to be incurred in connection with the discontinued operations
      of Soundbreak.com (originally ceased operations in February 2001), related
      primarily to certain noncancellable lease obligations and a reduction in
      estimated amounts recoverable from existing sublease arrangements. The related
      lease obligations, which are guaranteed by Acacia Research Corporation, expired
      in August 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="P1Item2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 28.4pt">&#160;</font></a><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P1Item2">MANAGEMENT&#8217;S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION </a>AND
      RESULTS OF OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cautionary
      Statement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
      should read the following discussion and analysis in conjunction with the
      consolidated financial statements and related notes thereto contained elsewhere
      in this report. The information contained in this Quarterly Report on Form
      10-Q
      is not a complete description of our businesses or the risks associated with
      an
      investment in our common stock. We urge you to carefully review and consider
      the
      various disclosures made by us in this report and in our other reports filed
      with the Securities and Exchange Commission, or SEC, including our Annual Report
      on Form 10-K for the year ended December 31, 2004, filed with the Securities
      and
      Exchange Commission on March 15, 2005, and our Registration Statement on Form
      S-3 filed with the Securities and Exchange Commission on February 1, 2005,
      as
      amended, that discuss our businesses in greater detail.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      report contains forward-looking statements within the meaning of the &#8220;safe
      harbor&#8221; provisions of the Private Securities Litigation Reform Act of 1995.
      Reference is made in particular to the description of our plans and objectives
      for future operations, assumptions underlying such plans and objectives, and
      other forward-looking statements included in this report. Such statements may
      be
      identified by the use of forward-looking terminology such as "may," "will,"
      "expect," "believe," "estimate," "anticipate," "intend," "continue," or similar
      terms, variations of such terms or the negative of such terms. Such statements
      are based on management&#8217;s current expectations and are subject to a number of
      factors and uncertainties, which could cause actual results to differ materially
      from those described in the forward-looking statements. Such statements address
      future events and conditions concerning product development, capital
      expenditures, earnings, litigation, regulatory matters, markets for products
      and
      services, liquidity and capital resources and accounting matters. Actual results
      in each case could differ materially from those anticipated in such statements
      by reason of factors such as future economic conditions, changes in consumer
      demand, legislative, regulatory and competitive developments in markets in
      which
      we and our subsidiaries operate, results of litigation and other circumstances
      affecting anticipated revenues and costs. We expressly disclaim any obligation
      or undertaking to release publicly any updates or revisions to any
      forward-looking statements contained herein to reflect any change in our
      expectations with regard thereto or any change in events, conditions or
      circumstances on which any such statement is based. Additional factors that
      could cause such results to differ materially from those described in the
      forward-looking statements are set forth in connection with the forward-looking
      statements and in the section titled &#8220;Risk Factors&#8221; below. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Businesses</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      used
      in this Form 10-Q, "we," "us" and "our" refer to Acacia Research Corporation
      and
      its subsidiary companies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation, a Delaware corporation, was originally incorporated in
      California in January 1993 and reincorporated in Delaware in December
      1999.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following discussion is based primarily on our unaudited consolidated balance
      sheet as of September 30, 2005, and on our unaudited consolidated statement
      of
      operations for the period from January 1, 2005, to September 30, 2005. The
      discussion compares the activities for the three and nine months ended September
      30, 2005, to the activities for the three and nine months ended September 30,
      2004. This information should be read in conjunction with the accompanying
      unaudited consolidated financial statements and notes thereto. This information
      should also be read in conjunction with the &#8220;Risk Factors&#8221; incorporated by
      reference elsewhere in this section. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation is comprised of two operating groups, the CombiMatrix
      group
      and the Acacia Technologies group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>CombiMatrix
      Group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      life
      sciences business, referred to as the &#8220;CombiMatrix group,&#8221; a division of Acacia
      Research Corporation, is primarily comprised of Acacia Research Corporation&#8217;s
      our wholly owned subsidiary, CombiMatrix Corporation and CombiMatrix
      Corporation&#8217;s wholly owned subsidiaries, CombiMatrix Molecular Diagnostics,
      Inc., or CMD, and CombiMatrix K.K. and includes all corporate assets,
      liabilities and transactions related to Acacia Research Corporation&#8217;s life
      sciences business. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      CombiMatrix group is seeking to become a broadly diversified biotechnology
      business, through the development of proprietary technologies and products
      in
      the areas of drug development, genetic analysis, molecular diagnostics,
      nanotechnology research, defense and homeland security markets, as well as
      other
      potential markets where its products could be utilized. Among the technologies
      being developed by the CombiMatrix group is a platform technology to rapidly
      produce customizable arrays, which are semiconductor-based tools for use in
      identifying and determining the roles of genes, gene mutations and proteins.
      This technology has a wide range of potential applications in the areas of
      genomics, proteomics, biosensors, drug discovery, drug development, diagnostics,
      combinatorial chemistry, material sciences and nanotechnology. Other
      technologies include proprietary molecular synthesis and screening methods
      for
      the discovery of potential new drugs. CombiMatrix Molecular Diagnostics, Inc.,
      a
      wholly owned subsidiary located in Irvine, California, is exploring
      opportunities for the CombiMatrix group&#8217;s arrays in the field of clinical
      diagnostics. CombiMatrix K.K., a wholly owned Japanese corporation located
      in
      Tokyo, Japan, is exploring opportunities for CombiMatrix Corporation&#8217;s array
      system with pharmaceutical and biotechnology companies in the Asian
      market.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acacia
      Technologies Group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      intellectual property licensing and enforcement business, referred to as the
      &#8220;Acacia Technologies group,&#8221; a division of Acacia Research Corporation, is
      primarily comprised of certain of Acacia Research Corporation&#8217;s wholly owned
      subsidiaries and limited liability companies including: Acacia Global
      Acquisition Corporation, Acacia Media Technologies Corporation, Acacia Patent
      Acquisition Corporation, Acacia Technologies Services Corporation, AV
      Technologies LLC, Broadcast Innovation LLC, Computer Cache Coherency
      Corporation, Computer Docking Station Corporation, Data Encryption Corporation,
      Data Innovation LLC, Financial Services Innovation LLC, Information Technology
      Innovation LLC, InternetAd LLC, IP Innovation LLC, KY Data Systems LLC,
      Microprocessor Enhancement Corporation, New Medium LLC, TechSearch LLC, VData
      LLC, Soundview Technologies, Inc. and Spreadsheet Automation Corporation, and
      also includes all corporate assets, liabilities, and related transactions of
      Acacia Research Corporation attributed to Acacia Research Corporation&#8217;s
      intellectual property licensing and enforcement business. See &#8220;Acquisition&#8221;
      below for information on our recent business acquisition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group develops, acquires, and licenses patented
      technologies.&#160; Acacia controls 33 patent portfolios, which include over
      130
      U.S. patents, and certain foreign counterparts, covering technologies used
      in a
      wide variety of industries including Audio/Video Enhancement &amp;
      Synchronization, Broadcast Data Retrieval, Computer Memory Cache Coherency,
      Credit Card Fraud Protection, Data Encryption &amp; Product Activation, Digital
      Media Transmission, or DMT&#174;, Digital Ink Jet Printing, Digital Video Production,
      Dynamic Manufacturing Modeling, Enhanced Internet Navigation, High Resolution
      Optics, Image Resolution Enhancement, Hearing Aid ECS, Interactive Data Sharing,
      Interactive Television, Interstitial Internet Advertising, Laptop Connectivity,
      Microprocessor Enhancement, Multi-Dimensional Bar Codes, Network Data Back-Up,
      Resource Scheduling, Rotational Video Imaging and Spreadsheet
      Automation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acquisition</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 28, 2005, Acacia Global Acquisition Corporation acquired substantially
      all of the assets of Global Patent Holdings, LLC, a privately held patent
      holding company based in Northbrook, Illinois, which owned 11 patent licensing
      companies, or GPH Acquisition. The acquisition provided the Acacia Technologies
      group 100% ownership of companies that control 27 patent portfolios, which
      included 120 U.S. patents and certain foreign counterparts, and cover
      technologies used in a wide variety of industries. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition was accounted for using the purchase method of accounting. Under
      the
      purchase method of accounting, the purchase consideration is allocated to the
      assets acquired, including tangible assets, patents and other identifiable
      intangibles and liabilities assumed, based on their estimated fair market values
      at the date of acquisition. The consolidated statement of operations includes
      the results of the acquired companies beginning on January 28, 2005, the date
      of
      acquisition. The aggregate purchase consideration was approximately $25.1
      million, including $5.0 million of cash, the issuance of 3,938,832 shares of
      Acacia Research-Acacia Technologies common stock, or AR-Acacia Technologies
      stock, valued at $19.3 million (net of estimated common stock registration
      costs
      of $212,000) and acquisition costs, including registration costs, of $796,000.
      The value of the common shares issued was determined based on the average market
      price of AR-Acacia Technologies stock, as reported on NASDAQ, over the 5-day
      period (December 13 - December 17, 2004) before and after the terms of the
      acquisition were agreed to and announced. Net tangible assets acquired were
      not
      material. $25.1 million of the purchase price was allocated to patent related
      intangible assets acquired, which are being amortized on a straight-line basis
      over a weighted average estimated economic useful life of six
      years.</font></div>
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    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Overview</strong></font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>CombiMatrix
      Group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the three and nine months ended September 30, 2005, the CombiMatrix group&#8217;s
      operating activities included the recognition of $1.5 million and $4.4 million
      in revenues, including $973,000 and $3.0 million in government contract revenues
      under its two-year, $5.9 million contract with the Department of Defense to
      further the development of the CombiMatrix group&#8217;s array technology for the
      detection of biological threat agents, and $490,000 and $1.4 million in
      CustomArray</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      product,
      capital equipment and service revenues, respectively. The CombiMatrix group
      is
      negotiating additional contracts with the government, which if successful will
      extend the amount of revenues to be earned beyond what is currently obligated
      under its existing Department of Defense contract which was originally award
      in
      March 2004. Research and development expenses, excluding government contract
      costs, increased from the previous quarter due to ongoing internal research
      and
      development efforts to improve and expand the CombiMatrix group&#8217;s technology and
      product offerings. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the second quarter of 2005, CombiMatrix Corporation formed a wholly owned
      subsidiary, CombiMatrix Molecular Diagnostics, Inc., for the purpose of
      exploiting the opportunities in the clinical diagnostics market for the
      CombiMatrix group&#8217;s microarray technology. CMD is a California corporation
      located in Irvine. As of September 30, 2005, CMD had 14 employees, including
      several former executives of U.S. Labs and other laboratory diagnostic
      companies. This experienced management team will lead the CombiMatrix group&#8217;s
      efforts in developing and selling array-based products and services to the
      diagnostics marketplace. CMD currently leases approximately 3,500 square feet
      of
      lab space in Irvine, California and is in the process of applying for its
      Clinical Laboratory Improvement Amendment, or CLIA, certification necessary
      to
      perform laboratory operations for customers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group established additional strategic alliances</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      expanded its management team, and expanded its product </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">offerings
      during the three months ended September 30, 2005, as follows: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                July 2005, the CombiMatrix group entered into a non-exclusive agreement
                with J.K. International Inc. to distribute CombiMatrix&#8217;s CustomArray&#8482;
                microarray products in Japan. J.K. International&#8217;s marketing and sales
                organizations will market, sell, and service the CustomArray&#8482; products.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                July 2005, CMD announced the appointment of Dr. Mathew Moore, Director
                of
                Research and Development, Robert Embree, Director of Laboratory
                Operations, and John Besser, Chief Financial Officer to its executive
                management team.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                August 2005, the CombiMatrix group announced that R. Scott Greer
                joined
                CombiMatrix Corporation as an advisor. Mr. Greer is managing director
                of
                Numenor Ventures, LLC, a firm he formed to invest in and provide
                strategic
                advisory services to innovative life sciences companies. He is a
                founder
                and remains chairman of Abgenix, Inc., a public biopharmaceutical
                company.
                Mr. Greer served as Chief Executive Officer of Abgenix from June
                1996 to
                April 2002. He is also a director of publicly traded Sirna Therapeutics,
                Inc. and chairman of Acologix, a private company. Previously, Mr.
                Greer
                was a director of Ilumina, Inc. and CV Therapeutics, Inc., both publicly
                traded companies. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                August 2005, the CombiMatrix group announced the launch of its first
                CustomArray&#8482; DNA Synthesizer, enabling researchers to build microarrays in
                their own facilities. The platform consists of the DNA CustomArray&#8482;
                Synthesizer instrument and freely programmable microarrays or
                CustomArrays&#8482;. Initially, the instrument has been designed to fabricate
                the CustomArray&#8482; 12K (12,000 unique sites) array.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  August 2005, the CombiMatrix group and the Biodesign Institute
                  at Arizona
                  State University, or the Institute, entered into a collaboration
                  toward
                  the development of a peptide array synthesizer utilizing the CombiMatrix
                  group&#8217;s proprietary virtual-flask technology. Under the terms of the
                  agreement, the Biodesign Institute&#8217;s Center for BioOptical Nanotechnology
                  purchased CombiMatrix group equipment and will be funding development
                  of
                  the synthesizer. The CombiMatrix group is granting technology rights
                  and
                  contributing expertise related to its technology, and the CombiMatrix
                  group and the Institute will share revenue from commercialization
                  of
                  peptide array synthesizers, peptide array products, and intellectual
                  property that are developed.&#160;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                August 2005, the CombiMatrix group announced that Dr. Eric Whitman
                joined
                CMD as a member of its scientific advisory board and as a consultant
                in
                the area of melanoma diagnosis. Dr Whitman, F.A.C.S., is the
                Administrative Director of Surgical Services and the Director of
                the
                Melanoma Center at Mountainside Hospital, in Montclair, New
                Jersey.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                September 2005, the CombiMatrix group expanded its product line to
                include
                the CustomArray&#8482; 4X2K&#8482;. This product contains four independent
                2000-feature microarrays on a single CustomArray&#8482;. As with all
                CustomArray&#8482; products, the 4X2K offers complete array customization, user
                control of probe design, and the ability to modify microarray design
                at
                any time. It delivers high sensitivity, throughput, and ease of use
                for
                gene discovery, pathway research, and molecular characterization
                of
                disease. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                September 2005, the CombiMatrix group entered into a global distribution
                agreement with VWR International, Inc., or VWR, to distribute
                CustomArrays&#8482; and CatalogArrays&#8482; for the CombiMatrix group. VWR&#8217;s sales
                and marketing organization presently serves over 250,000 customers
                with
                worldwide sales of $3.0 billion
                annually.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                September 2005, the CombiMatrix Group received a one-year, $338,000
                contract from the U.S. Air Force for the development and production
                of
                microarrays to detect pathogens that cause upper respiratory infections
                and pathogens that infect wounds. This contract is the result of
                a
                collaborative effort with the Air Force Institute of Occupational
                Health,
                or AFIOH, that lead to the development of a rapid assay and microarray
                that identifies, among other things, all forms (serotypes) of influenza
                A,
                SARS and bird flu, including the H5N1 strain. The first array to
                be
                developed under the new contract will identify a number of upper
                respiratory infections that can cause potentially life threatening
                diseases (such as viral and bacterial pneumonia) or lead to pandemic
                infections (such as bird flu and
                SARS).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group established additional strategic alliances during the three
      months ended June 30, 2005, as follows: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                May 2005 the CombiMatrix group entered into a non-exclusive distribution
                agreement with Inter Medical to distribute CustomArray&#8482; microarray
                products in Japan. Under the agreement, Inter Medical will market,
                sell
                and service the CustomArray&#8482; products in the Japanese marketplace.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                June 2005, the CombiMatrix group entered into a co-development agreement
                with STMicroelectronics, or ST, a global leader in the development
                and
                manufacturing of semiconductor products. The co-development is to
                add the
                CombiMatrix group&#8217;s proprietary electro-chemical detection technology to
                ST&#8217;s In-Check&#8482; lab-on-chip platform and to evaluate the combined system.
                ST&#8217;s In-Check platform is designed to address research and point-of-care
                diagnostics markets. Under the terms of the agreement, ST will financially
                support the CombiMatrix group in this
                work.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group established additional strategic alliances during the three
      months ended March 31, 2005, as follows: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                January 2005, the CombiMatrix group entered into a distribution agreement
                with InBio to distribute the CombiMatrix group&#8217;s CustomArray&#8482; products for
                the Australian and New Zealand marketplaces. InBio&#8217;s sales and marketing
                organization will market, sell, and service the CustomArray&#8482; products in
                these regions. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                February 2005, the CombiMatrix group entered into a broad cross-licensing
                and collaboration agreement with Benitec, Ltd., or Benitec, a leading
                RNAi
                therapeutics company. The CombiMatrix group has non-exclusively licensed
                to Benitec intellectual property related to the use of cocktails,
                or pools
                of siRNAs, as therapeutic agents against viral diseases. In addition,
                Benitec will also receive a co-exclusive sublicense to two specific
                sequences targeting key genes of HIV that the CombiMatrix group previously
                exclusively licensed from its partner irsiCaixa.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      return, Benitec has non-exclusively licensed its portfolio of 10 issued and
      60
      pending patents to the CombiMatrix group for the development of RNAi
      therapeutics for the treatment or prevention of injuries or diseases in humans
      resulting from the exposure to biological, chemical, radioactive and other
      weapons. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to this cross-license agreement, the CombiMatrix group and Benitec
      plan
      to collaborate in a number of other areas including the use of CustomArrays&#8482; to
      study possible off-target effects of RNAi therapeutics. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the three and nine months ended September 30, 2005, the CombiMatrix group made
      progress in several facets of its business including sales growth, advancement
      of its drug development programs, entrance into the molecular diagnostics
      market, advances in programs with its existing alliance partners, establishment
      of additional strategic alliances, and continued progress with its government
      contract work and in other general business initiatives.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the nine months ended September 30, 2005, Acacia Research Corporation raised
      net
      proceeds of $12.8 million through the sale of approximately 7.8 million shares
      (and 1.6 million stock purchase warrants) of Acacia Research-CombiMatrix stock,
      or AR-CombiMatrix stock, in two registered direct offerings, which were
      attributed to the CombiMatrix group. Refer to Note 5 to the Acacia Research
      Corporation consolidated financial statements for additional information on
      equity financing activities during the periods presented.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acacia
      Technologies Group</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
      for the three and nine months ended September 30, 2005, were $6.8 million and
      $11.3 million, respectively, representing 202% and 223% increases over the
      comparable 2004 periods, respectively. Revenues for the three months ended
      September 30, 2005 and 2004 were comprised of recurring license fee revenues
      of
      $927,000 and $740,000, respectively, and paid-up license fee revenues of $5.9
      million and $1.5 million, respectively. Revenues for the nine months ended
      September 30, 2005 and 2004 were comprised of recurring license fee revenues
      of
      $2.5 million and $2.0 million, respectively, and paid-up license fee revenues
      of
      $8.8 million and $1.5 million, respectively. License fee revenues for the nine
      months ended September 30, 2005 included licensing revenues from our DMT&#174;
      technology and from our Audio/Video Enhancement and Synchronization, Computer
      Memory Cache Coherency, Computer Simulation, Digital Video Production, Credit
      Card Fraud Protection, High Capacity Disk, Interactive Television, Interstitial
      Internet Advertising, Multi-Dimensional Bar Code and Network Data Back-Up
      technologies.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group&#8217;s operating activities for the three and nine months
      ended September 30, 2005, were principally focused on the continued development,
      commercialization and enforcement of its patent portfolios, including the launch
      and continued pursuit of multiple licensing programs and execution of licensing
      agreements associated with the patents and patent rights acquired in the GPH
      Acquisition. See Note 10 to the Acacia Research Corporation consolidated
      financial statements for a summary of ongoing patent enforcement actions as
      of
      September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      October 2005, the Acacia Technologies group is pursuing 18 licensing and
      enforcement programs which include its&#160;Audio/Video Enhancement and
      Synchronization, Broadcast Data Retrieval, Computer Memory Cache Coherency,
      Credit Card Fraud Protection, Data Encryption and Product Activation, Digital
      Media Transmission, Digital Video Production, Dynamic Manufacturing Modeling,
      Enhanced Internet Navigation, Image Resolution Enhancement, Interactive Data
      Sharing, Interactive Television, Interstitial Internet Advertising, High
      Capacity Compact Disks, Laptop Connectivity, Microprocessor Enhancement,
      Multi-Dimensional Bar Codes, Network Data Back-Up, Spreadsheet Automation,
      and
      Resource Scheduling technologies. As of October 2005, the Acacia Technologies
      group has executed license agreements and recognized revenues from 11 of its
      18
      ongoing licensing and enforcement programs.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketing,
      general and administrative expenses increased during the three and nine months
      ended September 30, 2005, as compared to the same periods in 2004, due primarily
      to the hiring of additional patent licensing and business development personnel
      as we expanded our licensing and enforcement business and an increase in general
      and administrative expenses in connection with ongoing operations, including
      GPH
      Acquisition related consulting fees. Patent related legal expenses related
      to
      ongoing licensing programs increased during the three months ended September
      30,
      2005, as compared to the same period in 2004, due to a increase in DMT&#174;
      technology patent prosecution and enforcement activity as well as ongoing patent
      prosecution and enforcement activity related to certain of the patent portfolios
      and rights acquired in the GPH Acquisition. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the three and nine months ended September 30, 2005, the Acacia Technologies
      group continued to execute its business strategy in the area of patent portfolio
      acquisitions, including consummation of the GPH Acquisition in the first quarter
      of 2005 and the acquisition of the following patent portfolios:</font></div><br>
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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        </div>
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    <div>&#160;</div>
    <div><br>
      <div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
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              <td>
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                  Connectivity Patent.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  Relates to a commonly used technology to connect laptop computers
                  to
                  peripheral devices via docking
                  stations.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
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                  Aid ECM Patent.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  Covering electromagnetic compatibility shielding, or ECS, technology
                  commonly incorporated into hearing
                  aids.</font></div>
              </td>
            </tr>

        </table>
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      <div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
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              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
              </td>
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                  Ink Jet Printing Patents. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Covering
                  a method of using digital processing to create a row by row, column
                  by
                  column matrix of color intensity values from an image, that are
                  stored
                  into memory. These values are transformed using a dither matrix,
                  resulting
                  in enhanced color separation. Color inkjet printers are commonly
                  used to
                  print photo quality pictures from digital
                  cameras.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>High
                  Resolution Optics Patents. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Generally
                  relate to refractive and diffractive systems and methods for improving
                  imaging capabilities in multi-element optical systems by using
                  fewer
                  elements. The patented systems and techniques have direct applications
                  in
                  military imaging systems such as thermal weapon sites, as well
                  as
                  commercial products like camera lenses and optical
                  printers.</font></div>
              </td>
            </tr>

        </table>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the nine months ended September 30, 2005, the Acacia Technologies group also
      executed several additional letters of intent with third-party patent portfolio
      owners regarding additional potential patent portfolio purchases. These
      acquisitions will continue to expand and diversify the Acacia Technologies
      group&#8217;s revenue generating opportunities and accelerate the execution of the
      Acacia Technologies group&#8217;s business strategy of acquiring, developing and
      licensing patented technologies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the nine months ended September 30, 2005, Acacia Research Corporation raised
      net
      proceeds of $19.5 million through the sale of 3.5 million shares of AR-Acacia
      Technologies stock, which was attributed to the Acacia Technologies group.
      Refer
      to Note 5 to the Acacia Research Corporation consolidated financial statements
      for additional information on equity financing activities during the periods
      presented.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Critical
      Accounting Policies </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      unaudited interim financial statements have been prepared in accordance with
      accounting principles generally accepted in the United States of America.
      Preparation of these statements requires management to make judgments and
      estimates. Some accounting policies have a significant impact on amounts
      reported in these financial statements. A summary of significant accounting
      policies and a description of accounting policies that are considered critical
      may be found in our 2004 Annual Report on Form 10-K, filed with the SEC on
      March
      15, 2005, in the Notes to the Consolidated Financial Statements and the Critical
      Accounting Policies section. In addition, refer to Note 2 to the consolidated
      interim financial statements included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia
      Research Corporation Consolidated </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Comparison
      of the </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Results
      of Operations for the </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Three
      and Nine Months Ended September 30, 2005 and 2004</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Net
      Income (Loss) (In thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    income (loss)</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,441</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,390</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,808</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">844</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      changes in net income (loss) were primarily due to operating results and
      activities as discussed below. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">&#160;</div>
      <div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">44</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Revenues
      and Cost of Revenues (In thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.5pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.5pt" align="justify">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recurring
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,856
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,781
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,500
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">973
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">685
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,603
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                </td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,404
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">214
                    </font></div>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(282</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(41</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(635</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(81</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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        <div>&#160;</div>
        <div>&#160;</div>
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      and Development Contract.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In March
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      agreement with Roche. As a result of completing all obligations under this
      agreement and in accordance with the CombiMatrix group&#8217;s revenue recognition
      policies for multiple-element arrangements, the CombiMatrix group recognized
      $17.3 million of research and development contract revenues during the first
      quarter of 2004, all of which were previously deferred. The majority of research
      and development efforts under the Roche agreement were incurred prior to
      2004.</font></div>
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      that make recurring quarterly or annual license fee payments, in accordance
      with
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      are recognized from Acacia Technologies group licensees that made paid-up
      license fee payments for past infringement and future use of certain of our
      patented technologies, in accordance with the terms of their respective license
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      increase in license fee revenues is due primarily to the growth in the number
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      DMT</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#174;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      technology license agreements executed since the end of the comparable 2004
      periods, organic growth within our recurring licensee revenue category and
      the
      timing of the execution of paid-up license agreements for patent portfolios
      acquired in the GPH Acquisition. License fee revenues will fluctuate from period
      to period based on the types of agreements executed each period (i.e. recurring
      payments over the license term or fully paid-up license agreements for past
      infringement and future use of our patented technologies), fluctuations in
      the
      number of license agreements executed each period, fluctuations in the sales
      results or other royalty per unit activities of our licensees that impact the
      calculation of license fees due, the timing of the receipt of periodic license
      fee payments from licensees, and other factors.&#160;&#160;Periodic license
      fee
      revenues may include amounts that relate to prior license periods or prior
      periods of infringement, which are recognized as revenues in the period
      received. Costs incurred in connection with the Acacia Technologies group&#8217;s
      ongoing licensing activities are included in marketing, general and
      administrative expenses and patent related legal expenses in the statement
      of
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      a
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      quarter 2004 results include $1.5 million of V-chip related deferred license
      fee
      revenues and $668,000 of V-chip related deferred legal costs.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Government
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      The
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      September 30, 2005, as compared to the same periods in 2004, was due to
      increased development efforts under the CombiMatrix group&#8217;s two-year, $5.9
      million research and development contract with the Department of Defense to
      further the development of the CombiMatrix group&#8217;s array technology for the
      detection of biological threat agents, which was executed in March 2004. Under
      the terms of the contract, the CombiMatrix group is reimbursed on a periodic
      basis for actual costs incurred to perform its obligations, plus a fixed fee.
      Revenues are recognized under the percentage-of-completion method of accounting,
      using the cost-to-cost approach to measure completeness at the end of each
      reporting period. Cost of government contract revenues reflect research and
      development expenses incurred in connection with the CombiMatrix group&#8217;s
      commitments under this contract. As of September 30, 2005, the contract was
      approximately 85% complete and the CombiMatrix group had approximately $700,000
      of costs remaining to be incurred on the existing contract. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group is negotiating additional contracts with the government,
      which
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      currently obligated under its existing Department of Defense
      contract.</font></div>
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      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">45</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      of the CombiMatrix group&#8217;s array products and equipment. The CombiMatrix group
      launched its CustomArray&#8482; 902 DNA array platform in March 2004, its CustomArray&#8482;
      12K DNA expression array in July 2004 and began selling its DNA array
      synthesizer during the second quarter of 2005. The increase in sales and cost
      of
      sales is due primarily to continued growth and acceptance of its array products,
      equipment and services in the marketplace since launch in 2004, as well as
      nine
      months worth of array sales for the nine months ended September 30, 2005, as
      compared to only five months of sales in the comparable 2004 period.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Operating
      Expenses (In thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
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              <tr>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                    and development expenses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,527</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,140</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,082</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,932</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt">&#160;</div>
        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Research
          and Development Expenses. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
          and development expenses, comprised solely of costs incurred by the CombiMatrix
          group, increased during the three and nine months ended September 30, 2005,
          as
          compared to the same periods in 2004</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>,
          </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">due
          primarily to the creation of CombiMatrix Molecular Diagnostics, which is
          currently undertaking several array-based bioinformatic research and development
          projects in order to begin commercial diagnostic services in 2006. Since
          the
          launch of CustomArray&#8482;, the CombiMatrix group has continued internal research
          and development efforts to improve and expand the CombiMatrix group&#8217;s technology
          and product offerings. </font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Future
      research and development expenses will continue to be incurred in connection
      with the CombiMatrix group&#8217;s commitments under its collaboration and supply
      agreements with various strategic partners including Furuno and Toppan, as
      well
      as ongoing internal research and development efforts in the areas of genomics,
      diagnostics, drug discovery and development and material sciences</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      CombiMatrix group expects its research and development expenses to continue
      to
      fluctuate and such expenses could increase in future periods as additional
      contract and/or internal research and development agreements are
      undertaken.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketing,
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,830</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,597</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,980</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,269</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                    expenses - patents</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,076
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,174
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,173
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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          certain of the companies acquired in the GPH Acquisition. Third quarter
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      administrative expenses for the periods presented is as follows (in
      thousands):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">170</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">586</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">319
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">448
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
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                    Technologies group:</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">203
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">663
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                    in consulting expenses</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">766
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%">
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                <td width="2%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="11%"><font size="2">205</font></td>
                <td align="left" valign="bottom" width="2%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="11%"><font size="2">205</font></td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Decrease)&#160;increase
                    in other general and administrative expenses</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(41</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">236
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>

          </table>
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        <div>&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Legal
      Expense - Patents (Acacia Technologies group only).</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Patent
      related legal expenses for the three and nine months ended September 30, 2005,
      included $183,000 and $612,000, respectively, in patent related prosecution
      and
      enforcement costs incurred by certain of the companies acquired in the GPH
      Acquisition. As described earlier, patent related legal expenses for the three
      and nine months ended September 30, 2004 included $668,000 in previously
      deferred V-chip related legal expenses. Excluding the impact of the GPH
      Acquisition in 2005 and the V-chip related legal fees in 2004, patent related
      legal expenses were $893,000 and $1.6 million for the three and nine months
      ended September 30, 2005, and $506,000 and $1.7 million for the three and nine
      months ended September 30, 2004, respectively. The increase for the three month
      period and decrease for the nine month period was due to corresponding
      fluctuations in DMT&#174; patent portfolio related claims prosecution, litigation and
      enforcement activity in the 2005 periods, as compared to the 2004 periods.
      DMT&#174;
      related legal fees paid to outside attorneys are incurred based on actual time
      and out-of-pocket expenses incurred by external counsel and fluctuate from
      period to period based on patent enforcement and prosecution activity in each
      period. We expect patent related legal expenses to continue to fluctuate based
      on actual outside patent counsel fees and expenses incurred in connection with
      the Acacia Technologies group&#8217;s ongoing patent commercialization and enforcement
      programs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Although
      most litigation with respect to the patent portfolios acquired in connection
      with the GPH Acquisition is handled on a contingency basis, where attorneys
      fees
      are paid out of license fee revenues collected based on a contractual
      percentage, certain other costs and expenses in connection with our maintenance,
      licensing, and enforcement of patents are likely to increase as a result of
      the
      acquisition, including patent filing fees, patent development costs, travel
      costs, expert and consulting fees, and other third-party expenses. In addition,
      under the various contingency agreements with outside patent law firms, the
      Acacia Technologies group is required to pay out-of-pocket expenses incurred
      by
      these firms in connection with the ongoing litigation, on a monthly basis.
      We
      also expect these expenses to fluctuate from quarter to quarter based on the
      level of enforcement activity each period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Contingent
      Legal Fees and Inventor Royalties Expense.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      During
      the three and nine months ended September 30, 2005, the Acacia Technologies
      group incurred contingent legal fee expenses totaling $1,834,000 and $2,791,000
      and inventor royalties expenses totaling $2,105,000 and $2,915,000,
      respectively, in connection with the recognition of paid-up license fee revenues
      summarized above. The majority of patent and patent rights agreements associated
      with the patent portfolios acquired in the GPH Acquisition are subject to
      contingent legal fee arrangements with outside attorneys and also are subject
      to
      agreements with inventors that contain provisions granting to the original
      patent owners the right to receive inventor royalties based on future net
      revenues, as defined in the respective agreements. As such, contingent legal
      fees and inventor royalties expenses in future periods will fluctuate in
      accordance with the timing and amount of related revenues recognized by the
      Acacia Technologies group from these patent portfolios.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Impairment
      Charge and Inventor Royalties Expense - V-chip. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      result of the conclusion of the Acacia Technologies group&#8217;s V-chip patent
      licensing program in August 2004, third quarter 2004 results include a non-cash
      impairment charge of $1,616,000 associated with the write-off of goodwill
      related to the V-chip.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      third
      quarter 2005 results included $225,000 of V-chip related inventor royalties
      expense recognized as a result of the anticipated conclusion of all V-chip
      related litigation activities in October of 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Legal
      Settlement Charges (Credits)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Legal
      settlement charges (credits) relate to AR-CombiMatrix stock issuable and or
      potentially issuable in connection with certain anti-dilution provisions of
      the
      September 2002 settlement agreement between CombiMatrix Corporation, Dr. Donald
      Montgomery, and Nanogen, Inc. The related liability reflected management&#8217;s
      estimate, as of each balance sheet date, of the fair value of AR-CombiMatrix
      stock to be issued to Nanogen, Inc. as a result of certain options and warrants
      exercised during the period, if any, and the fair value of AR-CombiMatrix stock
      potentially issuable to Nanogen, Inc. as of each balance sheet date, pursuant
      to
      the anti-dilution terms of the agreement. The liability was adjusted at each
      balance sheet date for changes in the market value of the AR-CombiMatrix stock
      and reflected as long-term until settled in equity. All anti-dilution provisions
      of the settlement agreement expired as of September 30, 2005</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
      resulting in no liability as of September 30, 2005, or in any future periods
      and
      a net credit in the statement of operations of $406,000 for the nine months
      ended September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Warrant
      Charges (Credits).</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In
      accordance with SFAS No. 150, &#8220;Accounting for Certain Instruments with
      Characteristics of Both Liabilities and Equity,&#8221; or SFAS No. 150, and related
      interpretations, certain AR-CombiMatrix stock purchase warrants outstanding
      at
      September 30, 2005 have been classified as a long-term liability due to certain
      redemption provisions associated with the underlying AR-CombiMatrix stock.
      Changes in the fair value of the stock purchase warrant liability are reflected
      in the statement of operations. See Note 9 to the Acacia Research Corporation
      consolidated financial statements elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                    of patents </font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,607</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">399</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,407</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,197</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Amortization
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      patent amortization charges increased due to the amortization of patent related
      intangibles acquired in connection with the January 28, 2005 GPH Acquisition.
      Approximately $25.1 million of the purchase consideration paid in the GPH
      Acquisition was allocated to amortizable patents and related patent rights
      acquired. Amortization of the patents and patent rights acquired in the GPH
      Acquisition for the three and nine months ended September 30, 2005, totaled
      $1.2
      million and $3.2 million, respectively. Patent amortization charges will
      continue to be significant in future periods as the Acacia Technologies group
      continues to amortize the acquired patent related costs over a weighted average
      remaining economic useful life of approximately 5 years.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Discontinued
      Operations.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Results
      for the nine months ended September 30, 2005 and 2004, include charges, net
      of
      minority interests, of $210,000 and $104,000, respectively, related to estimated
      additional costs to be incurred in connection with the discontinued operations
      of Soundbreak.com (originally ceased operations in February 2001), related
      primarily to certain noncancellable lease obligations and a reduction in
      estimated amounts recoverable from existing sublease arrangements. The related
      lease obligations, which are guaranteed by Acacia Research Corporation, expired
      in August 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Inflation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inflation
      has not had a significant impact on Acacia Research Corporation, the CombiMatrix
      group or the Acacia Technologies group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Liquidity
      and Capital Resources</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
      Research Corporation&#8217;s consolidated cash and cash equivalents and short-term
      investments totaled $65.7 million at September 30, 2005, compared to
      $52.4&#160;million at December 31, 2004. Working capital at September 30,
      2005,
      was $61.9 million, compared to $49.2&#160;million at December&#160;31,
      2004.
</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
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      net increase (decrease) in cash and cash equivalents for the nine months ended
      September 30, 2005 and 2004 was comprised of the following (in
      thousands):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <div align="left">
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                <tr>
                  <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                  <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                      September 30, 2004</strong></font></div>
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                <tr>
                  <td valign="bottom" width="27%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td width="1%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
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                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                </tr>
                <tr>
                  <td valign="bottom" width="27%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td width="1%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>Technologies
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>CombiMatrix
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  <td valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><strong>Group
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #ffffff thin solid">
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #ffffff thin solid">
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                <tr bgcolor="#ffffff">
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                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Operating
                      activities</font></div>
                  </td>
                  <td width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(340</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(9,954</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(10,294</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1,692</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(8,654</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(10,346</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Investing
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                  <td width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(17,621</font></div>
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                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">11,177
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(6,444</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(16</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(10,938</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(10,954</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Financing
                      activities</font></div>
                  </td>
                  <td width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">19,572
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">12,969
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">32,541
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(234</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">18,746
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">18,512
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Effect
                      of exchange rate on cash</font></div>
                  </td>
                  <td width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">35
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">35
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(5</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(5</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Net
                      cash used in discontinued operations</font></div>
                  </td>
                  <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(525</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(525</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(834</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                    <div>
                      <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(834</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#cbf9d1">
                  <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Increase
                      (decrease) in cash and cash equivalents</font></div>
                  </td>
                  <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">1,086</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">14,227</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">15,313</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2,776</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      September 30, 2005, were $4.1 million, comprised of $3.0 million, in biological
      threat detection contract payments received from the Department of Defense,
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      $1.1million from the sale of array products and related services. Cash receipts
      in the comparable 2004 period totaled $2.5 million, comprised of $1.3 million
      in
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      and related services. Cash outflows from operations for the CombiMatrix group
      increased to $14.1 million, as compared to $11.2 million in the same period
      in
      2004, due to an increase in research and development expenses primarily related
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      ended September 30, 2005, increased to $11.3 million, as compared to $2.5
      million in the same period in 2004. Cash outflows from operations for the Acacia
      Technologies group increased to $11.6 million, as compared to $4.2 million
      in
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      expenses, general and administrative expenses and the impact of the timing
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      changes in short term investments in available-for-sale securities by both
      groups, in connection with ongoing short-term cash management activities. Short
      term investments represent capital available to fund current operations and
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      $5.8 million, paid by the Acacia Technologies group in connection with the
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      acquisition costs incurred by the Acacia Technologies group. Investing
      activities also included capital purchases totaling $1.2 million and $721,000,
      for the nine months ended September 30, 2005 and 2004, respectively, primarily
      related to the CombiMatrix group. The CombiMatrix group also made additional
      investments in Leuchemix, Inc. totaling $1.1 million during the nine months
      ended September 30, 2005, as compared to $0 in the comparable 2004 period.
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      30,
      2005 and 2004 were comprised of the following (in thousands except share
      data):</font></div>
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                  &#160;&#160;&#160; </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nine
                    Months</strong></font></div>
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                    Months</strong></font></div>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <tr>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
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                    2005</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    2004</strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AR-ACTG
                    stock:</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">February
                    2005 Equity Financing - 3,500,000 shares @ $5.60 per share</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,532</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                    from Option exercises</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">177
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AR-CBMX
                    stock:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                    2005 Equity Financing - 1,400,444 shares @ $2.25 per share</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,114
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                    2005 Equity Financing</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,385,907
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,707
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                    2004 Equity Financing - 3,000,000 shares @ $5.00 per share</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,715
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                    from Option / Warrant exercises</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,736
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,541</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
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    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
      in the table above are shown net of related stock issuances costs. Proceeds
      from
      these offerings are being used by the respective groups for general working
      capital purposes. All of the shares of stock were offered pursuant to an
      effective registration statement previously filed with the Securities and
      Exchange Commission. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      believes that our cash and cash equivalent balances, anticipated cash flow
      from
      operations, availability under our shelf registration statement and other
      external sources of available credit, will be sufficient to meet our cash
      requirements through at least the next twelve months. Total maximum proceeds
      of
      the shelf registration were $52.4 million, of which $4.1 million remains
      available as of September 30, 2005. We may however encounter unforeseen
      difficulties that may deplete our capital resources more rapidly than
      anticipated, including those set forth in our Risk Factors on pages 5, 6, 8,
      9,
      12 and 13 of our amended registration statement on Form S-3/A filed with the
      SEC
      on May 6, 2005, incorporated by reference herein. Any efforts to seek additional
      funding could be made through equity, debt or other external financing and
      there
      can be no assurance that additional funding will be available on favorable
      terms, if at all. If we fail to obtain additional funding when needed, we may
      not be able to execute our business plans and our business may suffer.
</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Off-Balance
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      not entered into off-balance sheet financing arrangements, other than operating
      leases. We have no significant commitments for capital expenditures in 2005.
      Other than as set forth below, we have no committed lines of credit or other
      committed funding or long-term debt. The following table lists our material
      known future cash commitments as of September 30, 2005:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr>
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            <td width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            <td align="left" colspan="17" valign="bottom" width="37%" style="BORDER-BOTTOM: #000000 thin solid">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Payments
                Due by Period (In thousands)</strong></font></div>
            </td>
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          <tr>
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contractual
                Obligations </strong></font></div>
            </td>
            <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Remaining</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2007</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2008</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2009
                and Thereafter</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                Leases</font></div>
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            <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">625</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,399</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,002</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,615</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minimum
                Royalty Payments</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">975</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">irsiCaixa
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                licensing agreement</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(3)
                </sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 11pt">&#160;</font></div>
            </td>
            <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">175</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Leuchemix
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            </td>
            <td width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">500</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,150</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consulting
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            <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">246</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,074</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                Contractual Cash Obligations</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">975</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">____________________</font></div>
    <div>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
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            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Refer
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                statements for a description of the September 30, 2002 settlement
                agreement between CombiMatrix Corporation and Dr. Donald Montgomery
                and
                Nanogen.</font></div>
            </td>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2)</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">See
                Note 10 to the Acacia Research Corporation consolidated financial
                statements included elsewhere herein for additional information regarding
                the October 2004 Leuchemix
                transaction.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(3)</font></div>
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                any potential future payments contingent upon the completion of certain
                milestones in accordance with the
                agreement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(4)</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Reflects
                $2.0 million consulting contract commitment, including estimated
                reimbursable expenses, to be paid over two years in connection with
                the
                Acacia Technologies group&#8217;s GPH Acquisition, as described
                above.</font></div>
            </td>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition of certain patents and patent rights, certain
      companies included in the Acacia Technologies group executed related agreements
      which grant to the former owners of the respective patents or patent rights,
      the
      right to receive inventor royalties based on future net license fee revenues
      (as
      defined in the respective agreements) generated by the Acacia Technologies
      group
      as a result of licensing the respective patents or patent portfolios. Inventor
      royalties paid pursuant to the agreements are expensed in the consolidated
      statement of operations in the period that the related license fee revenues
      are
      recognized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Recent
      Accounting Pronouncements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
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      Note&#160;7 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Quantitative
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      exposure to market risk is limited primarily to interest income sensitivity,
      which is affected by changes in the general level of United States interest
      rates, particularly because a significant portion of our investments are in
      short-term debt securities issued by the U.S. government, U.S. corporations,
      institutional money market funds and other money market instruments. The primary
      objective of our investment activities is to preserve principal while at the
      same time maximizing the income received without significantly increasing risk.
      To minimize risk, we maintain a portfolio of cash, cash equivalents and
      short-term investments in a variety of investment-grade securities and with
      a
      variety of issuers, including corporate notes, commercial paper and money market
      instruments. Due to the nature of our short-term investments, we believe that
      we
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      derivative financial instruments.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DISCUSSION
      OF SEGMENTS&#8217; OPERATIONS, FINANCIAL RESOURCES AND LIQUIDITY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>COMBIMATRIX
      GROUP MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>(A
      Division of Acacia Research Corporation)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>You
      should read this discussion in conjunction with the CombiMatrix group financial
      statements and related notes and the Acacia Research Corporation consolidated
      financial statements and related notes, both included elsewhere herein.
      Historical results and percentage relationships are not necessarily indicative
      of operating results for any future periods.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>General</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">See
      Item 2. &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results
      of Operations - Overview,&#8221; for a general overview of the CombiMatrix group&#8217;s
      business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      AR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">-CombiMatrix
      stock is intended to reflect the separate performance of the CombiMatrix group,
      rather than the performance of Acacia Research Corporation as a whole, the
      CombiMatrix group is not a separate legal entity. Holders of AR-CombiMatrix
      stock are stockholders of Acacia Research Corporation. As a result, they
      continue to be subject to all of the risks of an investment in Acacia Research
      Corporation and all of its businesses, assets and liabilities. The assets Acacia
      Research Corporation attributes to the CombiMatrix group could be subject to
      the
      liabilities of the Acacia Technologies group. Please see Note 1 to our
      consolidated financial statements included elsewhere herein for details
      regarding our separate group presentation and our classes of common
      stock.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>CombiMatrix
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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        <div>&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
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                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,302</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">973
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">685
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,985
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,603
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(920</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(647</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,820</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,505</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
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                </td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,404
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">214
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(41</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(635</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(81</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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          </table>
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        <div>&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Research
      and Development Contract.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In March
      2004, the CombiMatrix group completed all phases of its research and development
      agreement with Roche. As a result of completing all obligations under this
      agreement and in accordance with the CombiMatrix group&#8217;s revenue recognition
      policies for multiple-element arrangements, the CombiMatrix group recognized
      $17.3 million of research and development contract revenues during the first
      quarter of 2004, all of which were previously deferred. The majority of research
      and development efforts under the Roche agreement were incurred prior to
      2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">52</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Government
      Contract and Cost of Government Contract Revenues.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
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      September 30, 2005, as compared to the same periods in 2004, was due to
      increased development efforts under the CombiMatrix group&#8217;s two-year, $5.9
      million research and development contract with the Department of Defense, which
      was executed in March 2004. Under the terms of the contract, the CombiMatrix
      group is reimbursed on a periodic basis for actual costs incurred to perform
      its
      obligations, plus a fixed fee. Revenues are recognized under the
      percentage-of-completion method of accounting, using the cost-to-cost approach
      to measure completeness at the end of each reporting period. Cost of government
      contract revenues reflect research and development expenses incurred in
      connection with the CombiMatrix group&#8217;s commitments under this contract. As of
      September 30, 2005, the contract was approximately 85% complete and the
      CombiMatrix group had approximately $700,000 of costs remaining to be incurred
      on the existing contract. The CombiMatrix group is negotiating additional
      contracts with the government, which if successful will extend the amount of
      revenues to be earned beyond what is currently obligated under its existing
      Department of Defense contract. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Product
      Revenues and Cost of Product Sales.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Product
      revenues and costs of product sales relate to domestic and international sales
      of the CombiMatrix group&#8217;s array products and equipment. The CombiMatrix group
      launched its CustomArray&#8482; 902 DNA array platform in March 2004, its CustomArray&#8482;
      12K DNA expression array in July 2004 and began selling its DNA array
      synthesizer during the second quarter of 2005. The increase in sales and cost
      of
      sales is due primarily to continued growth and acceptance of its array products,
      equipment and services in the marketplace since launch in 2004, as well as
      nine
      months worth of array sales for the nine months ended September 30, 2005, as
      compared to only five months of sales in the comparable 2004
      period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Operating
      Expenses (In thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                    and development expenses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,527</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,140</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,082</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,932</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Research
          and Development Expenses. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
          and development expenses increased during the three and nine months ended
          September 30, 2005, as compared to the same periods in 2004, due primarily
          to
          the creation of CombiMatrix Molecular Diagnostics, which is currently
          undertaking several array-based bioinformatic research and development
          projects
          in order to begin commercial diagnostic services in 2006. Since the launch
          of
          CustomArray</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>TM,</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          the
          CombiMatrix group has continued internal research and development efforts
          to
          improve and expand the CombiMatrix group&#8217;s technology and product offerings.
</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Future
      research and development expenses will continue to be incurred in connection
      with the CombiMatrix group&#8217;s commitments under its collaboration and supply
      agreements with various strategic partners including Furuno and Toppan, as
      well
      as ongoing internal research and development efforts in the areas of genomics,
      diagnostics, drug discovery and development and material sciences. The
      CombiMatrix group expects its research and development expenses to continue
      to
      fluctuate and such expenses could increase in future periods as additional
      contract and/or internal research and development agreements are
      undertaken.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketing,
                    general and administrative expenses</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,840</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,274</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,621</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,780</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                    settlement charges (credits)</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(211</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(90</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(406</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrant
                    charges (credits)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(163</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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          </table>
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        <div>&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Marketing,
      General and Administrative Expenses. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      increase in marketing, general and administrative expenses for the three and
      nine months ended September 30, 2005 as compared to the same periods in 2004,
      was due primarily to increases in marketing and sales costs of $170,000 and
      $586,000, respectively, related to the CustomArray&#8482; platform, which are driven
      primarily by increases in our sales force as well as expanded marketing and
      advertising efforts. In addition, the creation of CombiMatrix Molecular
      Diagnostics during the second quarter of 2005 resulted in increased general
      and
      administrative expenses of $319,000 and $448,000 for the three and nine months
      ended September 30, 2005, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">53</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Legal
      Settlement Charges (Credits)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Legal
      settlement charges (credits) relate to AR-CombiMatrix stock, issuable and or
      potentially issuable in connection with certain anti-dilution provisions of
      the
      September 2002 settlement agreement between CombiMatrix Corporation, Dr. Donald
      Montgomery, and Nanogen, Inc. The related liability reflected management&#8217;s
      estimate, as of each balance sheet date, of the fair value of AR-CombiMatrix
      stock to be issued to Nanogen, Inc. as a result of certain options and warrants
      exercised during the period, if any, and the fair value of AR-CombiMatrix stock
      potentially issuable to Nanogen, Inc. as of each balance sheet date, pursuant
      to
      the anti-dilution terms of the agreement. The liability was adjusted at each
      balance sheet date for changes in the market value of the AR-CombiMatrix stock
      and reflected as long-term until settled in equity. All anti-dilution provisions
      of the settlement agreement expired as of September 30, 2005, resulting in
      no
      liability as of September 30, 2005, or in any future periods and a net credit
      in
      the statement of operations of $406,000 for the nine months ended September
      30,
      2005</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Warrant
      Charges (Credits).</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In
      accordance with SFAS No. 150, and related interpretations, certain
      AR-CombiMatrix stock purchase warrants outstanding at September 30, 2005 have
      been classified as a long-term liability due to certain redemption provisions
      associated with the underlying AR-CombiMatrix stock. Changes in the fair value
      of the stock purchase warrant liability are reflected in the statement of
      operations. See Note 9 to the Acacia Research Corporation consolidated financial
      statements elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Liquidity
      and Capital Resources </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      September 30, 2005, cash and cash equivalents and short-term investments totaled
      $24.7 million, compared to $23.7 million at December 31, 2004. Working capital
      at September 30, 2005, was $23.2 million, compared to $22.1&#160;million
      at
      December&#160;31, 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      net increase (decrease) in cash and cash equivalents for the nine months ended
      September 30, 2005, and 2004, was comprised of the following (in
      thousands):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash provided by (used in):</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                    activities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9,954</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8,654</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investing
                    activities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,177
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,938</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financing
                    activities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,969
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,746
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                    of exchange rate on cash</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                    (decrease) in cash and cash equivalents</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,227</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(851</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
      receipts from customers for the CombiMatrix group for the nine months ended
      September 30, 2005, were $4.1 million, comprised of $3.0 million in biological
      threat detection contract payments received from the Department of Defense,
      and
      $1.1 million from the sale of array products and related services. Cash receipts
      in the comparable 2004 period totaled $2.5 million, comprised of $1.3 million
      in
      biological threat detection contract payments received from the Department
      of
      Defense, $1.0 million from Furuno, and $182,000 from the sale of array products
      and related services. Cash outflows from operations increased to $14.1 million,
      as compared to $11.2 million in the same period in 2004, due to an increase
      in
      research and development expenses primarily related to its biological threat
      detection contract with the Department of Defense, an increase in sales and
      marketing expenses related to the launch and ongoing sales activities associated
      with its CustomArray</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      products
      and services, the creation and commencement of operations of CombiMatrix
      Molecular Diagnostics during the second quarter of 2005, and the impact of
      the
      timing of vendor payments and related accruals. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      change in net cash flows from investing activities was due primarily to net
      sales of available-for-sale investments by the CombiMatrix group in connection
      with ongoing short-term cash management activities. The overall increase in
      net
      cash provided by investing activities in 2005 was partially offset by the
      purchase of $1.1 million of property and equipment for the nine months ended
      September 30, 2005 compared to $654,000 in the comparable 2004 period and $1.1
      million in additional investments in Leuchemix, Inc. for the nine months ended
      September 30, 2005 compared to $0 in the comparable 2004 period. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      cash
      flows provided by financing activities for the nine months ended September
      30,
      2005 were primarily comprised of $12.8 million in net proceeds from
      AR-CombiMatrix stock equity financings described earlier. Cash flows provided
      by
      financing activities for the nine months ended September 30, 2004 included
      net
      proceeds of approximately $13.7 million, related to the sale of AR-CombiMatrix
      stock in April 2004, and also included proceeds from the exercise of
      AR-CombiMatrix stock warrants and stock options, totaling $4.8
      million.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
      receivables at September 30, 2005 increased to $854,000, compared to $343,000
      at
      December 31, 2004, due to an increase in receivables from the Department of
      Defense in connection with the increase in activity under the CombiMatrix
      group&#8217;s biological threat detection contract and an increase in customer
      receivables related to CustomArray</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      product
      and equipment sales recognized during the third quarter 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      believes that the CombiMatrix group&#8217;s cash and cash equivalent balances,
      anticipated cash flow from operations, and other external sources of available
      credit will be sufficient to meet its cash requirements through at least the
      next twelve months. Total maximum proceeds under Acacia Research Corporation&#8217;s
      shelf registration were $52.4 million, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      which
      $4.1 million remains available as of September 30, 2005</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      CombiMatrix group may however encounter unforeseen difficulties that may deplete
      its capital resources more rapidly than anticipated, including those set forth
      in Acacia Research Corporation&#8217;s Risk Factors on pages 5, 6, 8, 9, 12 and 13 of
      Acacia Research Corporation&#8217;s amended registration statement on Form S-3/A filed
      with the SEC on May 6, 2005, incorporated by reference herein. Any efforts
      to
      seek additional funding could be made through equity, debt or other external
      financing and there can be no assurance that additional funding will be
      available on favorable terms, if at all. If the CombiMatrix group fails to
      obtain additional funding when needed, it may not be able to execute its
      business plans and its business may suffer. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Off-Balance
      Sheet Arrangements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      CombiMatrix group has not entered into off-balance sheet financing arrangements,
      other than operating leases. The CombiMatrix group has no significant
      commitments for capital expenditures in 2005. Other than as set forth below,
      the
      CombiMatrix group has no committed lines of credit or other committed funding
      or
      long-term debt. The following table lists the CombiMatrix group&#8217;s material known
      future cash commitments as of September 30, 2005: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<strong>Payments
                Due by Period (In thousands)</strong></font></div>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contractual
                Obligations</strong></font></div>
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            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Remaining
                2005</strong></font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2007</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2008</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2009
                and Thereafter</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                Leases </font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">499</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,884</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,937</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,615</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minimum
                Royalty Payments</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">975
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">irsiCaixa
                Foundation research, development,</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
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            </td>
            <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">175</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Leuchemix
                equity purchases</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>(3)</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">500</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,150</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
          </tr>
          <tr bgcolor="#cbf9d1">
            <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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            <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,062</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,309</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,137</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,715</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">975</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">_____________________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Refer
                to Note 10 to the Acacia Research Corporation consolidated financial
                statements for a description of the September 30, 2002 settlement
                agreement between CombiMatrix Corporation and Dr. Donald Montgomery
                and
                Nanogen.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2)</font></div>
              </td>
              <td><font size="2">Excludes any allocated rent expense in connection
                with
                Acacia Research Corporation&#8217;s management allocation
                policies.</font></td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td style="WIDTH: 18pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(3)</font></div>
                </td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">See
                    Note 10 to the CombiMatrix group financial statements for additional
                    information regarding the October 2004 Leuchemix
                    transaction.</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="LINE-HEIGHT: 1.25">
                  <td style="WIDTH: 18pt">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(4)</font></div>
                  </td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Excludes
                      any potential future payments contingent upon the completion
                      of certain
                      milestones in accordance with the
                      agreement.</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Recent
      Accounting Pronouncements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Note 7 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Quantitative
      and Qualitative Disclosures About Market Risk</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      CombiMatrix group&#8217;s exposure to market risk is limited to interest income
      sensitivity, which is affected by changes in the general level of United States
      interest rates, particularly because the majority of the group&#8217;s investments are
      in short-term debt securities issued by the U.S. Treasury and by U.S.
      corporations. The primary objective of the group&#8217;s investment activities is to
      preserve principal while at the same time maximizing the income the CombiMatrix
      group receives without significantly increasing risk. To minimize risk, the
      CombiMatrix group maintains its portfolio of cash, cash equivalents and
      short-term investments in a variety of investment-grade securities and with
      a
      variety of issuers, including corporate notes, commercial paper, government
      securities and money market funds. Due to the nature of its short-term
      investments, we believe that the CombiMatrix group is not subject to any
      material market risk exposure. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">At
      September 30, 2005, the CombiMatrix group had certain assets and liabilities
      denominated in Japanese Yen as a result of forming CombiMatrix K.K. However,
      due
      to the relative insignificance of those amounts, we do not believe that the
      CombiMatrix group has significant exposure to foreign currency exchange rate
      risks. The CombiMatrix group currently does not use derivative financial
      instruments to mitigate this exposure. The CombiMatrix group continues to review
      this and may begin hedging certain foreign exchange risks through the use of
      currency forwards or options in future periods.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
      TECHNOLOGIES GROUP MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>(A
      Division of Acacia Research Corporation)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><em>You
      should read this discussion in conjunction with the Acacia Technologies group
      financial statements and related notes and the Acacia Research Corporation
      consolidated financial statements and related notes, both included elsewhere
      herein. Historical results and percentage relationships are not necessarily
      indicative of operating results for any future periods.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>General</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">See
      Item 2. &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results
      of Operations - Overview,&#8221; for a general overview of the Acacia Technologies
      group&#8217;s business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Although
      the AR-Acacia Technologies stock is intended to reflect the separate performance
      of the Acacia Technologies group, rather than the performance of Acacia Research
      Corporation as a whole, the Acacia Technologies group is not a separate legal
      entity. Holders of the AR-Acacia Technologies stock are stockholders of Acacia
      Research Corporation. As a result, they continue to be subject to all of the
      risks of an investment in Acacia Research Corporation and all of Acacia Research
      Corporation&#8217;s businesses, assets and liabilities. The assets Acacia Research
      Corporation attributes to the Acacia Technologies group could be subject to
      the
      liabilities of the CombiMatrix group. Please see Note 1 to our consolidated
      financial statements included elsewhere herein for details regarding our
      separate group presentation and our classes of common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acacia
      Technologies Group</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>(A
      Division of Acacia Research Corporation)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Comparison
      of the </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Results
      of Operations for the </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Three
      and Nine Months Ended September 30, 2005 and 2004</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Division
      Net Loss (In thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Division
                    net loss</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,558</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,842</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Revenues
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <div>
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              <tr>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
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                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recurring
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">927</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">740</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,547</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,005</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Paid-up
                    license fees</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,856
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,500
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,781
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,500
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    license fees</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,783</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,240</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,328</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,505</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>License
      Fees.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Recurring license fee revenues are recognized from licensees that make recurring
      quarterly or annual license fee payments, in accordance with the terms of their
      respective license agreements. Paid-up license fee revenues are recognized
      from
      licensees that made paid-up license fee payments for past infringement and
      future use of certain of our patented technologies, in accordance with the
      terms
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      increase in license fee revenues is due primarily to the growth in the number
      of
      DMT</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#174;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      technology license agreements executed since the end of the comparable 2004
      periods, organic growth within our recurring licensee revenue category and
      the
      timing of the execution of paid-up license agreements for patent portfolios
      acquired in the GPH Acquisition. License fee revenues will fluctuate from period
      to period based on the types of agreements executed each period (i.e. recurring
      payments over the license term or fully paid-up license agreements for past
      infringement and future use of our patented technologies), fluctuations in
      the
      number of license agreements executed each period, fluctuations in the sales
      results or other royalty per unit activities of our licensees that impact the
      calculation of license fees due, the timing of the receipt of periodic license
      fee payments from licensees, and other factors.&#160;&#160;Periodic license
      fee
      revenues may include amounts that relate to prior license periods or prior
      periods of infringement, which are recognized as revenues in the period
      received. Costs incurred in connection with the Acacia Technologies group&#8217;s
      ongoing licensing activities are included in marketing, general and
      administrative expenses and patent related legal expenses in the statement
      of
      operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">56</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      result of the conclusion of the V-chip patent litigation in August 2004, third
      quarter 2004 results include $1.5 million of V-chip related deferred license
      fee
      revenues and $668,000 of V-chip related deferred legal costs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Operating
      Expenses (In thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Three Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,076
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,174
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                  </div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
                    </font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
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                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,616
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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        <div>&#160;</div>
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      increase in personnel costs primarily related to the addition of patent
      licensing and business development personnel, an increase in the consulting
      expenses primarily related to a consulting agreement executed with the former
      CEO of Global Patent Holdings, LLC in connection with the GPH Acquisition and
      an
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      of
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      administrative expenses also included certain one-time, employee relocation
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      administrative expenses for the periods presented is as follows (in
      thousands):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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        <div>
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              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nine
                    Months</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
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                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">203</font></div>
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                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">663</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">766
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%">
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                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="11%"><font size="2">205</font></td>
                <td align="left" valign="bottom" width="2%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="11%"><font size="2">205</font></td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
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                    increase in other general and administrative expenses</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(41</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">236
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left">&#160;</div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>&#160;</div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div>&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div>&#160;</div>
    </div>
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      included $183,000 and $612,000, respectively, in patent related prosecution
      and
      enforcement costs incurred by certain of the companies acquired in the GPH
      Acquisition. As described earlier, patent related legal expenses for the three
      and nine months ended September 30, 2004 include $668,000 in previously deferred
      V-chip related legal expenses. Excluding the impact of the GPH Acquisition
      in
      2005 and the V-chip related legal fees in 2004, patent related legal expenses
      were $893,000 and $1.6 million for the three and nine months ended September
      30,
      2005, and $506,000 and $1.7 million for the three and nine months ended
      September 30, 2004, respectively. The increase for the three month period and
      decrease for the nine month period was due to corresponding fluctuations in
      DMT&#174;
      patent portfolio related claims prosecution, litigation and enforcement activity
      in the 2005 periods, as compared to the 2004 periods. DMT&#174; related legal fees
      paid to outside attorneys are incurred based on actual time and out-of-pocket
      expenses incurred by external counsel and fluctuate from period to period based
      on patent enforcement and prosecution activity in each period. We expect patent
      related legal expenses to continue to fluctuate based on actual outside patent
      counsel fees and expenses incurred in connection with the Acacia Technologies
      group&#8217;s ongoing patent commercialization and enforcement programs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Although
      most litigation with respect to the patent portfolios acquired in connection
      with the GPH Acquisition is handled on a contingency basis, where attorneys
      fees
      are paid out of license fee revenues collected based on a contractual
      percentage, certain other costs and expenses in connection with our maintenance,
      licensing, and enforcement of patents are likely to increase as a result of
      the
      acquisition, including patent filing fees, patent development costs, travel
      costs, expert and consulting fees, and other third-party expenses. In addition,
      under the various contingency agreements with outside patent law firms, the
      Acacia Technologies group is required to pay out-of-pocket expenses incurred
      by
      these firms in connection with the ongoing litigation, on a monthly basis.
      We
      also expect these expenses to fluctuate from quarter to quarter based on the
      level of enforcement activity each period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">57</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Contingent
      Legal Fees and Inventor Royalties Expense.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      During
      the three and nine months ended September 30, 2005, the Acacia Technologies
      group incurred contingent legal fee expenses totaling $1,834,000 and $2,791,000
      and inventor royalties expenses totaling $2,105,000 and $2,915,000,
      respectively, in connection with the recognition of paid-up license fee revenues
      summarized above. The majority of patent and patent rights agreements associated
      with the patent portfolios acquired in the GPH Acquisition are subject to
      contingent legal fee arrangements with outside attorneys and also are subject
      to
      agreements with inventors that contain provisions granting to the original
      patent owners the right to receive inventor royalties based on future net
      revenues, as defined in the respective agreements. As such, contingent legal
      fees and inventor royalties expenses in future periods will fluctuate in
      accordance with the timing and amount of related revenues recognized by the
      Acacia Technologies group from these patent portfolios.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Impairment
      Charge and Inventor Royalties Expense - V-chip.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      As a
      result of the conclusion of the Acacia Technologies group&#8217;s V-chip patent
      licensing program in August 2004, third quarter 2004 results include a non-cash
      impairment charge of $1,616,000 associated with the write-off of goodwill
      related to the V-chip.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      third
      quarter 2005 results included $225,000 of V-chip related inventor royalties
      expense recognized as a result of the anticipated conclusion of all V-chip
      related litigation activities in October of 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                  the Three Months Ended</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                  the Nine Months Ended</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                  30, 2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                  30, 2004</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                  30, 2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                  30, 2004</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  of patents</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,334</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">125</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,586</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">375</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Amortization
      of Patents.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Non-cash
      patent amortization charges increased due to the amortization of patent related
      intangibles acquired in connection with the January 28, 2005 GPH Acquisition.
      Approximately $25.1 million of the purchase consideration paid in the GPH
      Acquisition was allocated to amortizable patents and related patent rights
      acquired. Amortization of the patents and patent rights acquired in the GPH
      Acquisition for the three and nine months ended September 30, 2005, totaled
      $1.2
      million and $3.2 million, respectively. Patent amortization charges will
      continue to be significant in future periods as the Acacia Technologies group
      continues to amortize the acquired patent related costs over a weighted average
      remaining economic useful life of approximately 5 years.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Discontinued
      Operations.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Results
      for the nine months ended September 30, 2005 and 2004, include charges, net
      of
      minority interests, of $210,000 and $104,000, respectively, related to estimated
      additional costs to be incurred in connection with the discontinued operations
      of Soundbreak.com (originally ceased operations in February 2001), related
      primarily to certain noncancellable lease obligations and a reduction in
      estimated amounts recoverable from existing sublease arrangements. The related
      lease obligations, which are guaranteed by Acacia Research Corporation, expire
      in August 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Liquidity
      and Capital Resources</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group&#8217;s cash and cash equivalents and short-term investments
      totaled $41.0 million at September 30, 2005, compared to $28.6&#160;million
      at
      December&#160;31, 2004. Working capital at September 30, 2005, was $38.7
      million, compared to $27.1&#160;million at December&#160;31, 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      net change in cash and cash equivalents for the nine months ended September
      30,
      2005, and 2004, was comprised of the following (in thousands):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
                    the Nine Months Ended</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                    30, 2004</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    cash provided by (used in) continuing operations:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                    activities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(340</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,692</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#cbf9d1">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #cbf9d1">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investing
                    activities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,621</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financing
                    activities</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,572
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(834</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Decrease
                    in cash and cash equivalents</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,086</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,776</font></div>
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                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">58</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Cash
      receipts from licensees for the Acacia Technologies group for the nine months
      ended September 30, 2005, increased to $11.3 million, as compared to $2.5
      million in the same period in 2004. Cash outflows from operations increased
      to
      $11.6 million, as compared to $4.2 million in the same period in 2004, due
      to
      increases in personnel costs, GPH Acquisition related consulting expenses,
      contingent legal fees and inventor royalty expenses, general and administrative
      expenses and the impact of the timing of vendor payments and related
      accruals.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      change in net cash flows used in continuing investing activities was due to
      net
      purchases of available-for-sale investments by the Acacia Technologies group
      in
      connection with ongoing short-term cash management activities. Net cash outflows
      from investing activities also reflects the cash consideration and related
      acquisition and registration costs totaling $5.8 million, paid by the Acacia
      Technologies group in connection with the GPH Acquisition in the first quarter
      of 2005 and $445,000 in other patent acquisition costs incurred by the Acacia
      Technologies group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
      flows provided by financing activities for the nine months ended September
      30,
      2005 were primarily comprised of net proceeds of approximately $19.5
      million</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      related
      to the sale of 3.5 million shares of AR-Acacia Technologies stock in February
      2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      believes that the Acacia Technologies group&#8217;s cash and cash equivalent balances,
      anticipated cash flow from operations, availability under Acacia Research
      Corporation&#8217;s shelf registration statement and other external sources of
      available credit, will be sufficient to meet the its cash requirements through
      at least the next twelve months. Total maximum proceeds under Acacia Research
      Corporation&#8217;s shelf registration were $52.4 million, of which $4.1 million
      remains available as of September 30, 2005. The Acacia Technologies group may
      however encounter unforeseen difficulties that may deplete its capital resources
      more rapidly than anticipated, including those set forth in Acacia Research
      Corporation&#8217;s Risk Factors on pages 5, 6, 8, 9, 12 and 13 of Acacia Research
      Corporation&#8217;s amended registration statement on Form S-3/A filed with the SEC on
      May 6, 2005, incorporated by reference herein. Any efforts to seek additional
      funding could be made through equity, debt or other external financing and
      there
      can be no assurance that additional funding will be available on favorable
      terms, if at all. If the Acacia Technologies group fails to obtain additional
      funding when needed, it may not be able to execute its business plans and its
      business may suffer.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Off-Balance
      Sheet Arrangements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group has not entered into off-balance sheet financing
      arrangements, other than operating leases. The Acacia Technologies group has
      no
      significant commitments for capital expenditures in 2005. Other than as set
      forth below, the Acacia Technologies group has no committed lines of credit
      or
      other committed funding or long-term debt. The following table lists the Acacia
      Technologies group&#8217;s material known future cash commitments as of September 30,
      2005:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" colspan="14" valign="bottom" width="34%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payments
                  Due by Period (in thousands)</font></strong></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">&#160;

                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><strong>Contractual
                  Obligations</strong></font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">&#160;

                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><strong>Remaining
                  2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">&#160;

                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">&#160;

                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><strong>2007</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">&#160;

                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><strong>2008</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<strong><font color="#333333" size="2">2009
                  and
                  Thereafter</font></strong></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman">Operating
                  Leases </font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">126</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">515</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman">Consulting
                  contract </font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #333333; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">246</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,074
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="27%" style="BORDER-BOTTOM: #cbf9d1 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #333333; FONT-FAMILY: Times New Roman">Total
                  Contractual Cash Obligations</font></div>
              </td>
              <td width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">372</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,589</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">164</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="5%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">________________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td valign="top" style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td valign="top">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Excludes
                any allocated rent expense in connection with Acacia Research
                Corporation&#8217;s management allocation
                policies.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td valign="bottom">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Reflects
                $2.0 million consulting contract commitment, including estimated
                reimbursable expenses, to be paid over two years in connection with
                the
                Acacia Technologies group&#8217;s purchase of the assets of Global Patent
                Holdings, LLC in January 2005, as described
                above.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition of certain patents and patent rights, certain
      companies included in the Acacia Technologies group executed related agreements
      which grant to the former owners of the respective patents or patent rights,
      the
      right to receive inventor royalties based on future net license fee revenues
      (as
      defined in the respective agreements) generated by the Acacia Technologies
      group
      as a result of licensing the respective patents or patent portfolios. Inventor
      royalties paid pursuant to the agreements are expensed in the consolidated
      statement of operations in the period that the related license fee revenues
      are
      recognized.</font><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">59</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Recent
      Accounting Pronouncements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Note 7 to the Acacia Research Corporation consolidated financial statements
      included elsewhere herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Quantitative
      and Qualitative Disclosures About Market Risk</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Acacia Technologies group&#8217;s exposure to market risk is limited primarily to
      interest income sensitivity, which is affected by changes in the general level
      of United States interest rates, particularly because a significant portion
      of
      our investments are in short-term debt securities issued by United States
      corporations, institutional money market funds and other money market
      instruments. The primary objective of our investment activities is to preserve
      principal while at the same time maximizing the income received without
      significantly increasing risk. To minimize risk, we maintain a portfolio of
      cash, cash equivalents and short-term investments in a variety of
      investment-grade securities and with a variety of issuers, including U.S.
      government and corporate notes and bonds, commercial paper and money market
      instruments. Due to the nature of our short-term investments, we believe that
      we
      are not subject to any material market risk exposure. We do not have any
      derivative financial instruments.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RISK
      FACTORS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">An
      investment in our stock involves a number of risks. Before making a decision
      to
      purchase our securities, you should carefully consider all of the risks
      described in this quarterly report and in our annual report </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">on
      Form
      10-K for the year ending December 31, 2004, filed with the Securities and
      Exchange Commission on March 15, 2005</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      If any of the risks incorporated by reference into this quarterly report or
      into
      our annual report actually occur, our business, financial condition and results
      of operations could be materially adversely affected. If this were to occur,
      the
      trading price of our securities could decline significantly and you may lose
      all
      or part of your investment. You should carefully review the &#8220;Risk Factors&#8221; set
      forth on pages 5 through 27 of our amended registration statement on Form S-3/A
      filed with the SEC on May 6, 2005, and hereby incorporated by
      reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P1Item3">Item
      3.&#160;&#160;&#160; QUANTITATIVE AND QUALITATIVE DISCLOSURES
      ABOUT MARKET RISK</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Refer
      to
      Item 2. &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results
      of Operations&#8221; under the caption &#8220;Quantitative and Qualitative Disclosures About
      Market Risk&#8221; for Acacia Research Corporation, the CombiMatrix group and the
      Acacia Technologies group, elsewhere herein, incorporated by
      reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      primary objective of our investment activities is to preserve principal while
      concurrently maximizing the income we receive from our investments without
      significantly increasing risk. Some of the securities that we may invest in
      may
      be subject to market risk. This means that a change in prevailing interest
      rates
      may cause the principal amount of the investment to fluctuate. For example,
      if
      we hold a security that was issued with a fixed interest rate at the
      then-prevailing rate and the prevailing interest rate later rises, the current
      value of the principal amount of our investment will decline. To minimize this
      risk in the future, we intend to maintain our portfolio of cash equivalents
      and
      short-term investments in a variety of securities, including commercial paper,
      money market funds, high-grade corporate bonds, government and non-government
      debt securities and certificates of deposit. In general, money market funds
      are
      not subject to market risk because the interest paid on such funds fluctuates
      with the prevailing interest rate. As of September 30, 2005, all of our
      investments were in money market funds, high-grade corporate bonds, and U.S.
      government debt securities. A hypothetical 100 basis point increase in interest
      rates would not have a material impact on the fair value of our
      available-for-sale securities as of September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P1Item4">Item
      4.&#160;&#160;&#160; CONTROLS AND
      PROCEDURES</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Evaluation
      of Disclosure Controls and Procedures </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 7.2pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      supervision and with the participation of our management, including our
      principal executive officer and principal financial officer, we conducted an
      evaluation of our disclosure controls and procedures, as such term is defined
      under Rule&#160;13a-15(e) promulgated under the Securities Exchange Act of
      1934,
      as amended. Based on this evaluation, our principal executive officer and our
      principal financial officer concluded that, as of the end of the period covered
      by this quarterly report, our disclosure controls and procedures were effective
      to ensure that the information required to be disclosed by us in the reports
      that we file or submit under the Securities Exchange Act of 1934 is accumulated
      and communicated to management, including our chief executive officer and chief
      financial officer, to allow timely decisions regarding required disclosure,
      and
      that such information is recorded, processed, summarized and reported within
      the
      time periods prescribed by the SEC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Changes
      in Internal Controls </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 7.2pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      were no changes in our internal control over financial reporting that occurred
      during our last fiscal quarter (the quarter ended September 30, 2005) that
      have
      materially affected, or are reasonably likely to materially affect, our internal
      control over financial reporting. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="PartII">PART
      II.&#160; &#160;OTHER INFORMATION</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P2Item1">Item
      1.&#160;&#160;&#160; LEGAL PROCEEDINGS
</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;None.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P2Item5">Item
      5.&#160;&#160;&#160; OTHER
      INFORMATION</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
      Pro Forma Consolidated Financial Information </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      update to the unaudited pro forma consolidated statement of operations included
      in Acacia Research Corporation&#8217;s Current Report on Form 8-K filed with the
      Securities and Exchange Commission on February 1, 2005, as amended, is being
      provided in connection with guidance set forth by Rule 3-05 and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Article
      11</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of
      Regulation S-X. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      unaudited pro forma consolidated statement of operations reflects the pro forma
      effect on Acacia Research Corporation's unaudited consolidated statements of
      operations for the nine months ended September 30, 2005, as reported by us
      in
      this Quarterly Report on Form 10-Q</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      from the acquisition of substantially all of the assets of Global Patent
      Holdings, LLC, as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">discussed
      elsewhere herein. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      unaudited pro forma statement of operations for the nine months ended September
      30, 2005 reflects the acquisition as if it had taken place on January 1,
      2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
      unaudited pro forma consolidated statement of operations is for informational
      purposes only. It does not purport to indicate the results that would have
      actually been obtained had the acquisition been completed on the assumed date
      or
      for the period presented, or which may be obtained in the future. The unaudited
      pro forma consolidated statement of operations should be read in conjunction
      with Management's Discussion and Analysis of Financial Condition and Results
      of
      Operations and the consolidated financial statements, including the notes,
      included in this Quarterly Report on Form 10-Q </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      our
      Registration Statement on Form S-3, Number 333-122452, filed with the Securities
      and Exchange Commission on February 1, 2005, as amended</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      The unaudited pro forma consolidated statement is presented in thousands, except
      share and per share information.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Research Corporation </strong></font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  </div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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              <td colspan="14" valign="bottom" width="49%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div align="center">&#160;</div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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            <tr>
              <td valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia<br></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research<br></font></strong><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Corporation<br></font></strong><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  revenues</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,717</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div>
                    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
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                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,717</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
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            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  operating expenses</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,436
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">477
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3),(4<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,913
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                  income (loss)</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,719</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(477</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,196</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  other income (expense)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">888
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">888
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">income
                  taxes</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,831</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(477</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,308</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                  for income taxes and minority interests</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">233
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">233
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
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            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
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            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
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              <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(210</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,808</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div>
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8211;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(477</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,285</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  forma earnings (loss) per common share:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attributable
                  to the Acacia Technologies group:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,192</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(477</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,669</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
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              </td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.20</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(0.21</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  average shares </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acacia
                  Research - Acacia Technologies stock:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#cbf9d1">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #cbf9d1 solid">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,387,562
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,555
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1">&#160;</td>
              <td align="right" valign="bottom" width="4%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 thin solid">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,777,117
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #cbf9d1 solid">&#160;</td>
            </tr>

        </table>
      </div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>________________</strong></font></div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Results
                of operations for Global Patent Holdings, LLC were not material for
                the
                2005 periods presented. Pro forma adjustments reflect the impact
                of the
                acquisition for the 28-day period from January 1, 2005 to January
                28,
                2005, the date of the acquisition. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">There
                is no pro forma impact on earnings (loss) per share attributable
                to the
                CombiMatrix group as presented in the accompany statements of operations
                for the periods presented.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(3)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">To
                reflect amortization of the patent related intangible assets acquired
                on a
                straight-line basis over the estimated economic useful life of the
                patents
                or groups of patents totaling $393,000 for the nine months ended
                September
                30, 2005 (amortization for the 28-day period from January 1, 2005
                through
                January 28, 2005). </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(4)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">To
                reflect consulting expense related to a consulting agreement between
                Acacia Global Acquisition Corporation as described in Item 2.
                &#8220;Management&#8217;s discussion and Analysis of financial Condition and Results
                of Operations,&#8221; totaling $84,000 for the nine months ended September 30,
                2005 (reflects expenses for the 28-day period from January 1, 2005
                through
                January 28, 2005).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">(5)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Represents
                incremental increase in weighted average shares as if the 3,938,832
                shares
                of AR-Acacia Technologies common stock issued a partial consideration
                for
                the GPH Acquisition were issued as of the beginning of the interim
                periods
                presented.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">&#160;</div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P2Item6">Item
      6.&#160;&#160;&#160; EXHIBITS </a></strong></font></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Form
                of Warrant</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font><font style="DISPLAY: inline">&#160;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Placement
                Agency Agreement</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">10.2</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Form
                of Subscription Agreement</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">10.3</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Form
                of Acacia Research Corporation 2002 Acacia Technologies Stock Incentive
                Plan Stock Issuance Agreement</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font><font style="DISPLAY: inline">&#160;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">31.1</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Executive Officer provided pursuant to Section 302 of
                the
                Sarbanes-Oxley Act of 2002</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">31.2</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Financial Officer provided pursuant to Section 302 of
                the
                Sarbanes-Oxley Act of 2002</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">32.1</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Executive Officer provided pursuant to 18 U.S.C. Section
                1350
                as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">32.2</font></div>
            </td>
            <td align="left" valign="top" width="75%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Financial Officer provided pursuant to 18 U.S.C. Section
                1350
                as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>________________</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup>&#160;
      Incorporated by reference to our Form 8-K filed on September 19,
      2005.</font></div>
    <div>&#160;</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup>&#160;
      Incorporated by reference to our Form 8-K filed on August 16, 2005.</font></div>
    <div><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">63</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="Signatures">SIGNATURES</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned, thereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ACACIA
              RESEARCH&#160;CORPORATION</strong></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td>&#160;</td>
            <td>&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/&#160;Paul
              R.
              Ryan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
              &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
              &#160;</u></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
            <td align="left"><font size="2">Paul R. Ryan&#160; </font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
              Executive Officer<br>(Authorized
              Signatory)&#160;</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2">&#160;</td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>&#160;</td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/&#160;Clayton
                J.
                Haynes&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                </u>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <div><font size="2">Clayton J. Haynes</font></div>
                <div><font size="2">Chief Financial Officer /Treasurer </font></div>
                <div><font size="2">(Principal Financial
                  Officer)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;&#160;&#160;November
        7, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">64</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="EXIndex">EXHIBIT
      INDEX</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="8%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<strong><font size="2">EXHIBIT<br><u>NUMBER</u></font></strong></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="bottom" width="85%">&#160;<strong><u><font size="2">EXHIBIT</font></u></strong></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Form
                of Warrant<sup>(1)</sup></font><font style="DISPLAY: inline">&#160;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Placement
                Agency Agreement</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">10.2</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Form
                of Subscription Agreement</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">10.3</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Form
                of Acacia Research Corporation 2002 Acacia Technologies Stock Incentive
                Plan Stock Issuance Agreement<sup>(2)</sup></font><font style="DISPLAY: inline">&#160;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">31.1</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Executive Officer provided pursuant to Section 302 of
                the
                Sarbanes-Oxley Act of 2002</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">31.2</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Financial Officer provided pursuant to Section 302 of
                the
                Sarbanes-Oxley Act of 2002</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">32.1</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Executive Officer provided pursuant to 18 U.S.C. Section
                1350
                as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">32.2</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td align="left" valign="top" width="85%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certifications
                of the Chief Financial Officer provided pursuant to 18 U.S.C. Section
                1350
                as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>________________</div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>1</sup>&#160;
        Incorporated by reference to our Form 8-K filed on September 19,
        2005.</font></div>
      <div>&#160;</div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>2</sup>&#160;
        Incorporated by reference to our Form 8-K filed on August 16,
        2005.</font></div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65</font></div>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>acacia-10qex3101.htm
<DESCRIPTION>SECTION 302 CERTIFICATION OF CEO
<TEXT>
<!-- saved from url=(0022)http://internet.e-mail -->
<html>
  <head>
    <title>
      Section 302 Certification of CEO
</title><!-- Licensed to: PublicEase, Inc.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39895 -->
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</head>
  <body bgcolor="#ffffff" style="MARGIN: 5%; TEXT-INDENT: 0pt"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      31.1</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATION
      OF CHIEF EXECUTIVE OFFICER</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
      Paul
      R. Ryan, certify that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
                have reviewed this Quarterly Report on Form 10-Q of Acacia Research
                Corporation;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, this report does not contain any untrue statement
                of a
                material fact or omit to state a material fact necessary to make
                the
                statements made, in light of the circumstances under which such statements
                were made, not misleading with respect to the period covered by this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, the financial statements, and other financial information
                included in this report, fairly present in all material respects
                the
                financial condition, results of operations and cash flows of the
                registrant as of, and for, the periods presented in this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                registrant's other certifying officer and I are responsible for
                establishing and maintaining disclosure controls and procedures (as
                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
                control over financial reporting (as defined in Exchange Act Rules
                13a-15(f) and 15d-15(f)) for the registrant and
                have:</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                such disclosure controls and procedures, or caused such disclosure
                controls and procedures to be designed under our supervision, to
                ensure
                that material information relating to the registrant, including its
                consolidated subsidiaries, is made known to us by others within those
                entities, particularly during the period in which this report is
                being
                prepared;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                such internal control over financial reporting, or caused such internal
                control over financial reporting to be designed under our supervision,
                to
                provide reasonable assurance regarding the reliability of financial
                reporting and the preparation of financial statements for external
                purposes in accordance with generally accepted accounting
                principles;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Evaluated
                the effectiveness of the registrant's disclosure controls and procedures
                and presented in this report our conclusions about the effectiveness
                of
                the disclosure controls and procedures, as of the end of the period
                covered by this report based on such evaluation;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Disclosed
                in this report any change in the registrant's internal control over
                financial reporting that occurred during the registrant's most recent
                fiscal quarter (the registrant's fourth fiscal quarter in the case
                of an
                annual report) that has materially affected, or is reasonably likely
                to
                materially affect, the registrant's internal control over financial
                reporting; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                registrant's other certifying officer and I have disclosed, based
                on our
                most recent evaluation of internal control over financial reporting,
                to
                the registrant's auditors and the audit committee of the registrant's
                board of directors (or persons performing the equivalent
                functions):</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                significant deficiencies and material weaknesses in the design or
                operation of internal control over financial reporting which are
                reasonably likely to adversely affect the registrant's ability to
                record,
                process, summarize and report financial information;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 63pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                fraud, whether or not material, that involves management or other
                employees who have a significant role in the registrant's internal
                control
                over financial reporting.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Dated:&#160;
                November</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                7,
                2005</font></div>
            </td>
            <td valign="bottom" width="46%" style="BORDER-BOTTOM: #ffffff thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#160;/s/ Paul R.
                Ryan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                </u></font></div>
            </td>
            <td align="left" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="bottom" width="46%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Paul
                R. Ryan</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Chairman
                and Chief Executive Officer</em></strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>(Principal
                Executive Officer)</em></strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>acacia-10qex3102.htm
<DESCRIPTION>SECTION 302 CERTIFICATION OF CFO
<TEXT>
<!-- saved from url=(0022)http://internet.e-mail -->
<html>
  <head>
    <title>
      Section 302 Certification of CFO
</title><!-- Licensed to: PublicEase, Inc.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39895 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
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</head>
  <body bgcolor="#ffffff" style="MARGIN: 5%; TEXT-INDENT: 0pt"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      31.2</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATION
      OF CHIEF FINANCIAL OFFICER</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
      Clayton J. Haynes, certify that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 45pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
                have reviewed this Quarterly Report on Form 10-Q of Acacia Research
                Corporation;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 45pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, this report does not contain any untrue statement
                of a
                material fact or omit to state a material fact necessary to make
                the
                statements made, in light of the circumstances under which such statements
                were made, not misleading with respect to the period covered by this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 45pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, the financial statements, and other financial information
                included in this report, fairly present in all material respects
                the
                financial condition, results of operations and cash flows of the
                registrant as of, and for, the periods presented in this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 45pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                registrant's other certifying officer and I are responsible for
                establishing and maintaining disclosure controls and procedures (as
                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
                control over financial reporting (as defined in Exchange Act Rules
                13a-15(f) and 15d-15(f)) for the registrant and
                have:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                such disclosure controls and procedures, or caused such disclosure
                controls and procedures to be designed under our supervision, to
                ensure
                that material information relating to the registrant, including its
                consolidated subsidiaries, is made known to us by others within those
                entities, particularly during the period in which this report is
                being
                prepared;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                such internal control over financial reporting, or caused such internal
                control over financial reporting to be designed under our supervision,
                to
                provide reasonable assurance regarding the reliability of financial
                reporting and the preparation of financial statements for external
                purposes in accordance with generally accepted accounting
                principles;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Evaluated
                the effectiveness of the registrant's disclosure controls and procedures
                and presented in this report our conclusions about the effectiveness
                of
                the disclosure controls and procedures, as of the end of the period
                covered by this report based on such evaluation;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Disclosed
                in this report any change in the registrant's internal control over
                financial reporting that occurred during the registrant's most recent
                fiscal quarter (the registrant's fourth fiscal quarter in the case
                of an
                annual report) that has materially affected, or is reasonably likely
                to
                materially affect, the registrant's internal control over financial
                reporting; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 45pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                registrant's other certifying officer and I have disclosed, based
                on our
                most recent evaluation of internal control over financial reporting,
                to
                the registrant's auditors and the audit committee of the registrant's
                board of directors (or persons performing the equivalent
                functions):</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                significant deficiencies and material weaknesses in the design or
                operation of internal control over financial reporting which are
                reasonably likely to adversely affect the registrant's ability to
                record,
                process, summarize and report financial information;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.&#160;&#160;</font></td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                fraud, whether or not material, that involves management or other
                employees who have a significant role in the registrant's internal
                control
                over financial reporting.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Dated:&#160;
                November</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                7,
                2005</font></div>
            </td>
            <td valign="bottom" width="46%" style="BORDER-BOTTOM: #ffffff thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                /s/ Clayton J.
                Haynes&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u></font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="bottom" width="46%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Clayton
                J. Haynes</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Chief
                Financial Officer</em></strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>(Principal
                Financial Officer)</em></strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>acacia-10qex3201.htm
<DESCRIPTION>SECTION 906 CERTIFICATION OF CEO
<TEXT>
<!-- saved from url=(0022)http://internet.e-mail -->
<html>
  <head>
    <title>
      Section 906 Certification of CEO
</title><!-- Licensed to: PublicEase, Inc.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39895 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff" style="MARGIN: 5%; TEXT-INDENT: 0pt"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      32.1</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">CERTIFICATION
      PURSUANT TO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">18
      U.S.C. SECTION 1350,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AS
      ADOPTED PURSUANT TO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
      connection with the Quarterly Report of Acacia Research Corporation (the
&#8220;Company&#8221;) on Form 10-Q for the quarterly period ended September 30, 2005, as
      filed with the Securities and Exchange Commission on November 7, 2005 (the
      &#8220;Report&#8221;), I, Paul R. Ryan, Chairman and Chief Executive Officer of the Company,
      certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
      906
      of the Sarbanes-Oxley Act of 2002, that: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">1.
      The Report fully complies with the requirements of Section 13(a) or 15(d) of
      the
      Securities Exchange Act of 1934, as amended; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">2.
      The information contained in the Report fairly presents, in all material
      respects, the financial condition and results of operations of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">By:&#160;
      <u>/s/ Paul R.
      Ryan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Paul
      R. Ryan</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Chairman
      and Chief Executive Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">(Principal
      Executive Officer)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">November
      7</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      2005</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      signed
      original of this written statement required by Section 906 of the Sarbanes-Oxley
      Act of 2002 (&#8220;Section 906&#8221;), or other document authenticating, acknowledging, or
      otherwise adopting the signature that appears in typed form within the
      electronic version of this written statement required by Section 906, has been
      provided to the Company and will be retained by the Company and furnished to
      the
      Securities and Exchange Commission or its staff upon request. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>acacia-10qex3202.htm
<DESCRIPTION>SECTION 906 CERTIFICATION OF CFO
<TEXT>
<!-- saved from url=(0022)http://internet.e-mail -->
<html>
  <head>
    <title>
      Section 906 Certification of CFO
</title><!-- Licensed to: PublicEase, Inc.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39895 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff" style="MARGIN: 5%; TEXT-INDENT: 0pt"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      32.2</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">CERTIFICATION
      PURSUANT TO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">18
      U.S.C. SECTION 1350,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">AS
      ADOPTED PURSUANT TO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
      connection with the Quarterly Report of Acacia Research Corporation (the
&#8220;Company&#8221;) on Form 10-Q for the quarterly period ended September 30, 2005, as
      filed with the Securities and Exchange Commission on November 7, 2005 (the
      &#8220;Report&#8221;), I, Clayton J. Haynes, Chief Financial Officer of the Company,
      certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
      906
      of the Sarbanes-Oxley Act of 2002, that: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">1.
      The Report fully complies with the requirements of Section 13(a) or 15(d) of
      the
      Securities Exchange Act of 1934, as amended; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">2.
      The information contained in the Report fairly presents, in all material
      respects, the financial condition and results of operations of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">By:&#160;
      <u>/s/ Clayton J.
      Haynes&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </u>&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Clayton
      J. Haynes</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Chief
      Financial Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">(Principal
      Financial Officer)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">November
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      2005</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      signed
      original of this written statement required by Section 906 of the Sarbanes-Oxley
      Act of 2002 (&#8220;Section 906&#8221;), or other document authenticating, acknowledging, or
      otherwise adopting the signature that appears in typed form within the
      electronic version of this written statement required by Section 906, has been
      provided to the Company and will be retained by the Company and furnished to
      the
      Securities and Exchange Commission or its staff upon request. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>6
<FILENAME>acaciaresearch-logo.jpg
<DESCRIPTION>ACACIA RESEARCH CORP. LOGO
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end
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</SUBMISSION>
