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<SEC-DOCUMENT>0000818033-10-000026.txt : 20100315
<SEC-HEADER>0000818033-10-000026.hdr.sgml : 20100315
<ACCEPTANCE-DATETIME>20100315142033
ACCESSION NUMBER:		0000818033-10-000026
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20100315
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100315
DATE AS OF CHANGE:		20100315

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AP PHARMA INC /DE/
		CENTRAL INDEX KEY:			0000818033
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				942875566
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33221
		FILM NUMBER:		10680791

	BUSINESS ADDRESS:	
		STREET 1:		123 SAGINAW DRIVE
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063
		BUSINESS PHONE:		6503662626

	MAIL ADDRESS:	
		STREET 1:		123 SAGINAW DRIVE
		STREET 2:		123 SAGINAW DRIVE
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ADVANCED POLYMER SYSTEMS INC /DE/
		DATE OF NAME CHANGE:	19920703
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<div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt; FONT-WEIGHT: bold">UNITED STATES</font></div></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ITEM&#160;2.02</font></div></td>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;&#160;Results of Operations and Financial Condition</font></div></td></tr></table></div>
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<br></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On March 15, 2010, A.P. Pharma, Inc. (the &#8220;Company&#8221;) reported its results of operations for the quarter and year ended December 31, 2009.&#160;&#160;A copy of the press release announcing the Company&#8217;s results of operation is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.&#160;&#160;The press
release should be read in conjunction with the note regarding forward-looking statements, which is included in the text of the press release.</font></div>
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<br></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The information in this Item 2.02 and attached as Exhibit 99.1 to this Report will not be treated as &#8220;filed&#8221; for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), or otherwise subject to the liabilities of that section.&#160;&#160;This information will not be incorporated
by reference into any filing under the Securities Act of 1933, as amended, or into another filing under the Exchange Act, unless that filing expressly incorporates this information by reference.</font></div>
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<br></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d) Exhibits.&#160;&#160;The following material is filed as an exhibit to this Current Report on Form 8-K:</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.P. Pharma, Inc.</font></div></td></tr><tr>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Date: March 15, 2010</font></div></td>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Ronald J. Prentki</font></div></td></tr><tr>
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<div style="TEXT-ALIGN: right; TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-FAMILY: Arial; FONT-SIZE: 11pt">Exhibit 99.1<br></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 16pt">A.P. Pharma Announces Fourth Quarter and Year-End 2009 Financial Results</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt"><font style="FONT-FAMILY: Arial; FONT-SIZE: 11pt"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">REDWOOD CITY, Calif.</font> &#8211; March 15, 2010 &#8211; <font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; TEXT-DECORATION: underline">A.P. Pharma, Inc.</font> (NASDAQ: APPA), a specialty pharmaceutical
company, today reported financial results for its fourth quarter and full year ended December 31, 2009.</font></font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt"><font style="FONT-FAMILY: Arial; FONT-SIZE: 11pt"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#8220;</font>2009 was an important year for A.P. Pharma. We achieved a major milestone with the submission of a New Drug Application for <font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; TEXT-DECORATION: underline">APF530</font>,
which is being developed for the prevention of chemotherapy-induced nausea and vomiting,&#8221; said <font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; TEXT-DECORATION: underline">Ronald Prentki</font>, A.P. Pharma&#8217;s president and chief executive officer. &#8220;We also improved the financial position of the Company through the completion of a successful stock sale and the implementation of cost reduction measures, which provided resources for the continued development of APF530.&#8221;</font></font></div>
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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">In May the Company submitted a New Drug Application (NDA) for APF530, to the U.S. Food and Drug Administration (FDA), which the agency accepted for review in July.</font></div></td></tr></table></div>
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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">In September, the Company announced the completion of a license and development agreement with Merial, a major animal healthcare company, for a long-acting pain management product using A.P. Pharma&#8217;s Biochronomer&#8482; technology.</font></div></td></tr></table></div>
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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">In October, the Company completed a private placement providing aggregate proceeds of up to $13.1 million, consisting of a first tranche of common stock and warrants in October 2009 yielding aggregate proceeds of approximately $8.1 million, and a potential second tranche of common stock exercisable at the option of the investors prior to May 15, 2010 for proceeds of up to approximately $5 million.</font></div></td></tr></table></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Results of Operations</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">A.P. Pharma&#8217;s net loss for the fourth quarter of 2009 was $1.9 million, or $0.05 per share, compared with a net loss of $3.9 million, or $0.13 per share, for the fourth quarter of 2008. For the full year 2009, the Company&#8217;s net loss was $10.0 million, or $0.31 per share, versus a net loss of $23.1 million, or $0.75 per share, for 2008. The
improved operating results in both the quarter and the year ended December 31, 2009 were principally due to A.P. Pharma&#8217;s decision to suspend, for the time being, development of its other product candidates in order to focus its resources on the submission and approval of the NDA for APF530, as well as other cost containment initiatives undertaken by the Company.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">Contract revenue was $122,000 in the fourth quarter of 2009, and $1.3 million for all of 2009, compared with $20,000 and $369,000, respectively, for 2008. The increase in revenue for 2009 reflects $1.0 million of previously deferred revenue recognized as the result of the termination of a partner agreement in 2009, as well as revenue associated with
a development program utilizing our proprietary Biochronomer&#8482; technology with Merial.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">Cash, cash equivalents and marketable securities as of December 31, 2009 were $7.6 million, compared with $10.5 million at December 31, 2008. The Company believes its cash and cash equivalents as of December 31, 2009 will enable it to fund its operations through 2010, based on anticipated spending levels and certain expected positive cash inflows.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">About APF530</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">A.P. Pharma's lead product, APF530, prevents both acute and delayed onset of chemotherapy&#8211;induced nausea and vomiting (CINV). APF530 contains the 5-HT3 antagonist, granisetron, formulated in the Company&#8217;s proprietary Biochronomer&#8482; drug delivery system, which allows therapeutic drug levels to be maintained for five days with a single
subcutaneous injection. Injections and oral tablets containing granisetron are approved for the prevention of acute onset CINV, but not for delayed onset CINV. Granisetron was selected because it is widely prescribed by physicians based on a well-established record of safety and efficacy.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">About A.P. Pharma</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">A.P. Pharma is a specialty pharmaceutical company developing products using its proprietary Biochronomer&#8482; polymer-based drug delivery technology. The Company&#8217;s primary focus is on its lead product, APF530, for the prevention of CINV. The New Drug Application (NDA) for APF530 was submitted to the U.S. Food and Drug Administration (FDA) in
May 2009 and accepted for review in July 2009, at which time the FDA set a Prescription Drug User Fee Act (PDUFA) date of March 18, 2010. The Company has additional clinical and preclinical stage programs in the area of pain management, all of which utilize its bioerodible injectable and implantable delivery systems. For further information, visit the Company's web site at <font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; TEXT-DECORATION: underline">www.appharma.com</font>.</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Statements of Operations</font></div></td>
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<td valign="top" width="14%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt; FONT-WEIGHT: bold">December 31,</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="top" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt; FONT-WEIGHT: bold">2009</font></div></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt; FONT-WEIGHT: bold">2008</font></div></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt; FONT-WEIGHT: bold">2009</font></div></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt; FONT-WEIGHT: bold">2008</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="top" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="top" width="27%">
<div style="TEXT-INDENT: -9pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Contract revenue</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$122</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$20</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$1,261</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$369</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="top" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="center" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Operating expenses:</font></div></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt"><font style="FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;<font style="FONT-FAMILY: Arial; FONT-SIZE: 9pt">Research and development</font></font></font></div></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">1,419</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">2,759</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="top" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;7,796</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">19,507</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt"><font style="FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;<font style="FONT-FAMILY: Arial; FONT-SIZE: 9pt">General and administrative</font></font></font></div></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">803</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">1,093</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="top" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,707</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">4,307</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt"><font style="FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;Total operating expenses</font></font></font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">2,222</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">3,852</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">11,503</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">23,814</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Operating loss</font></div></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(2,100)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(3,832)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(10,242)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(23,445)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Interest income</font></div></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">3</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">41</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">29</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">587</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Other expense, net</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(6)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(75)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(5)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(67)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Loss from continuing</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;operations</font></div></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(2,103)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(3,866)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(10,218)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(22,925)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Income (loss) from discontinued</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;operations</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">68</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(80)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">68</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(200)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;Loss before income taxes</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(2,035)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">(3,946)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;(10,150)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;(23,125)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Provision for income taxes</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">122</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">--</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">122</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">--</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;Net loss</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$ (1,913)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$ (3,946)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$ (10,028)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;$ (23,125)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Basic and diluted loss per</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;common share:</font></div></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Loss from continuing</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;operations</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.06)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.13)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.31)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.74)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Net loss</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.05)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.13)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.31)</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">$(0.75)</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">Shares used to compute basic and diluted</font></div></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="27%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160;&#160;&#160;&#160;&#160;net loss per common share</font></div></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">37,325</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">30,853</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="13%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">32,625</font></div></td>
<td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">30,811</font></div></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr><tr>
<td valign="bottom" width="27%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="13%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="2%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="14%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td>
<td valign="top" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 9pt">&#160; </font></td></tr></table></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
<br>
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<div id="FTR">
<div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></div></div>
<div id="PN" style="PAGE-BREAK-AFTER: always">
<div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></div></div>
<div id="HDR"><font>&#160;</font></div></div>
<br>
<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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<td colspan="4" valign="top" width="77%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Balance Sheets</font></div></td></tr><tr>
<td colspan="4" valign="top" width="77%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">(in thousands)</font></div></td></tr><tr>
<td colspan="4" valign="top" width="77%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">(Unaudited)</font></div></td></tr><tr>
<td valign="top" width="47%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="25%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="26%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td></tr><tr>
<td valign="top" width="47%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="top" width="25%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">December 31, 2009</font></div></td>
<td valign="top" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td align="right" valign="top" width="26%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">December 31, 2008</font></div></td></tr><tr>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Assets</font></div></td>
<td valign="top" width="25%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="top" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="top" width="26%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Cash, cash equivalents and marketable</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;securities</font></div></td>
<td align="right" valign="bottom" width="25%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">$7,593</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">$10,538</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Accounts receivable, net</font></div></td>
<td align="right" valign="bottom" width="25%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">171</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">32</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Other current assets</font></div></td>
<td align="right" valign="bottom" width="25%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">549</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">246</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Total current assets</font></div></td>
<td align="right" valign="bottom" width="25%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">8,313</font></div></td>
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<td align="right" valign="bottom" width="26%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">10,816</font></div></td></tr><tr>
<td valign="top" width="47%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="bottom" width="25%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="bottom" width="26%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Property and equipment, net</font></div></td>
<td align="right" valign="bottom" width="25%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">510</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">881</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Other non-current assets</font></div></td>
<td align="right" valign="bottom" width="25%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">128</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">103</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Total assets</font></div></td>
<td align="right" valign="bottom" width="25%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">$8,951</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">$11,800</font></div></td></tr><tr>
<td valign="top" width="47%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="bottom" width="25%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="bottom" width="26%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td></tr><tr>
<td align="left" valign="top" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Liabilities and Stockholders' Equity</font></div></td>
<td valign="bottom" width="25%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td>
<td valign="bottom" width="26%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">&#160; </font></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Total liabilities</font></div></td>
<td align="right" valign="bottom" width="25%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;$2,155</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;$4,202</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Stockholders' equity</font></div></td>
<td align="right" valign="bottom" width="25%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">6,796</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">7,598</font></div></td></tr><tr>
<td align="left" valign="bottom" width="47%">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">Total liabilities and stockholders' equity</font></div></td>
<td align="right" valign="bottom" width="25%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">$8,951</font></div></td>
<td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td align="right" valign="bottom" width="26%" style="BORDER-BOTTOM: steelblue 4px double">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">$11,800</font></div></td></tr><tr>
<td valign="top" width="47%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="25%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td>
<td valign="top" width="26%"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">&#160; </font></td></tr></table></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Forward-looking Statements</font></font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 10pt">This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including uncertainties associated with capital resources and liquidity, timely development and regulatory approval of product candidates, satisfactory completion
of clinical studies, establishment of new corporate alliances, progress in research and development programs, launch and acceptance of new products and other risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. We caution investors that forward-looking statements reflect our analysis only on their stated date. We do not intend to update them except as required by law.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Contacts</font></div></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Corporate Contact:</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">A.P. Pharma, Inc.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">John B. Whelan, Vice President, Finance and Chief Financial Officer</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">650-366-2626</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">and</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt; FONT-WEIGHT: bold">Investor and Media Relations:</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">Corporate Communications Alliance, LLC</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">Edie DeVine</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Arial; FONT-SIZE: 11pt">209-814-9564</font></div>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
