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<SEC-DOCUMENT>0000950116-04-001336.txt : 20040503
<SEC-HEADER>0000950116-04-001336.hdr.sgml : 20040503
<ACCEPTANCE-DATETIME>20040503092730
ACCESSION NUMBER:		0000950116-04-001336
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040429
ITEM INFORMATION:		
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20040503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INNOVATIVE SOLUTIONS & SUPPORT INC
		CENTRAL INDEX KEY:			0000836690
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				232507402
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31157
		FILM NUMBER:		04771551

	BUSINESS ADDRESS:	
		STREET 1:		420 LAPP RD
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
		BUSINESS PHONE:		6108899898

	MAIL ADDRESS:	
		STREET 1:		420 LAPP ROAD
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>eightk.htm
<DESCRIPTION>8-K
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF">   <p align="center"><font face="serif" size="2"><b>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549</b></font></p> <p align="center"><font face="serif" size="2"><b><font face="serif" size="5">FORM 8-K<br></font><font size="3">CURRENT REPORT</font></b></font></p>
<p align="center"><font size="2" face="serif"><b>PURSUANT TO SECTION 13 OR 15(d)<br>OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p>
<p align="center"><font face="serif" size="3">Date of Report (Date of earliest event reported): April 29, 2004</font></p>
<p align="center"><font size="2" face="serif"><b>Innovative Solutions and Support, Inc.</b></font>
<hr align="center" width="250" size="1" noshade>
<div align="center"><font size="2" face="serif">(Exact name of issuer as specified in charter)</font>
    </p>
  </p>
</div>
<p>&nbsp;</p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
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<td align="center"><font size="2" face="serif"><b>PENNSYLVANIA</b></font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="30%" align="center"><font size="2" face="serif"><b>0-31157</b></font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="28%" align="center"><font size="2" face="serif"><b>23-2507402</b></font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="center" bgcolor="#FFFFFF"><font size="2" face="serif">(State or Other Jurisdiction</font><br><font size="2" face="serif">of Incorporation or</font><br><font size="2" face="serif">Organization)</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="center" bgcolor="#FFFFFF"><font size="2" face="serif">(Commission</font><br><font size="2" face="serif"> file</font><br><font size="2" face="serif"> number)</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="center" bgcolor="#FFFFFF"><font size="2" face="serif">(I.R.S. Employer</font><br><font size="2" face="serif"> Identification </font><br><font size="2" face="serif">Number)</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
</table>
<p align="center"><font size="2" face="serif"><b>720 Pennsylvania Drive<br>Exton, Pennsylvania 19341<br></b>(Address of principal executive offices)</font></p>
<p align="center"><font size="2" face="serif"><b>(610) 646-9800<br></b>(Registrant&#8217;s telephone number, including area code)</font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p>&nbsp;</p>
<p align="left"><font size="2" face="serif"><b>Item 9. Regulation FD Disclosure</b></font></p>
<p align="left"><font size="2" face="serif"><b>Item 12. Results of Operations and Financial Condition.</b></font></p>
<p><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information is furnished under Item 9. &#8220;Regulation FD Disclosure&#8221; and Item 12. &#8220;Disclosure of Results of Operations and Financial Condition.&#8221;</font></p>
<p><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 29, 2004, Innovative Solutions &amp; Support, Inc. issued a press release announcing its financial results for its second quarter and fiscal year to date periods ended March 31, 2004. A copy of the press release is attached as Exhibit 99.1 to this report and incorporated herein by reference.</font></p>
<p><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in this Current Report on Form 8-K (including Exhibit 99.1 attached hereto) is furnished pursuant to Items 9 and 12 of Form 8-K and shall not be deemed to be &quot;filed&quot; for the purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act), or otherwise subject to the liabilities of such section, nor shall such information or exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.</font></p> <p align="center"><font face="serif" size="2"><b>Signatures</b></font></p>
<p><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. </font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Innovative Solutions &amp; Support, Inc.</font></td> </tr>
<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td> </tr>
<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">By:   </font></td>
<td align="left"><font size="2" face="serif"><u>/s/ James J. Reilly</u></font></td> </tr>
<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">James J. Reilly</font></td> </tr>
<tr valign="top">
<td align="left" width="54%"><font size="2" face="serif">Date:  April 30, 2004</font></td>
<td align="left" width="6%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Chief Financial Officer</font></td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p>&nbsp;</p>
<p align="left"><font size="2" face="serif"><b><u>Exhibit Index</u></b></font></p>
<p align="left"><font size="2" face="serif">99.1     Press Release dated April 29, 2004 announcing financial results for the second quarter and fiscal year to date periods ended March 31, 2004.</font></p> <p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF">  <p align="left"><font size="2" face="serif"><b>Exhibit 99.1</b></font></p>
<p align="left"><font size="2" face="serif">Press Release </font></p>
<p align="left"><font size="2" face="serif"><b>Innovative Solutions &amp; Support, Inc. Announces Q2 results of: 120% increase in EPS, 103% increase in net income and a 53% increase in sales.</b></font></p>
<p align="left"><font size="2" face="serif">Exton, PA.&#150;(BUSINESS WIRE)&#150;April 29, 2004&#150;Innovative Solutions &amp; Support, Inc. (NASDAQ:ISSC-news) today announced the following results for the 2<sup>nd</sup> quarter and year to date periods ended March 31, 2004:</font></p>  <table width="80%" border="0" align="center" cellpadding="0" cellspacing="0">
<tr valign="top">
<td colspan="2" align="left"><font size="2" face="serif">Q2 FY 2004</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
</tr>
<tr valign="top">
<td align="left" width="4%"><font size="2" face="serif">&#149;</font></td>
<td align="left" width="49%"><font size="2" face="serif">Sales </font></td>
<td align="left"><font size="2" face="serif">up 53% to a record $10.9 million.</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">Net income </font></td>
<td align="left"><font size="2" face="serif">up 103% to $2.6 million.</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">EPS </font></td>
<td align="left"><font size="2" face="serif">up 120% to $0.22</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">Released Backlog</font></td>
<td align="left"><font size="2" face="serif">up 17% to $27 million ($44 total)</font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td colspan="2" align="left"><font size="2" face="serif">First Half FY2004</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">Sales </font></td>
<td align="left"><font size="2" face="serif">up 68% to $19.4 million.</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">Net Income </font></td>
<td align="left"><font size="2" face="serif">up 180% to $4.2 million.</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">EPS </font></td>
<td align="left"><font size="2" face="serif">up 192% to $0.35.</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">Please refer to the accompanying schedules highlighting our Statement of Operations and Balance Sheet.</font></p>
<p align="left"><font size="2" face="serif">A Company spokesman commented: &#8220;The demand for our RVSM equipment has materialized as anticipated and we expect it to continue into the foreseeable future, supported by replacement of obsolete and troublesome equipment.  The increase in demand was planned for and is not straining our resources.  Our new facility that we occupied two years ago has enabled us to comfortably meet this increase in demand.  Our state-of&#150;the-art Engineering and Manufacturing Campus will accommodate a four-fold increase in sales volume.   We are seeing a significant increase in non-RVSM related equipment as well.&#8221; </font></p>
<p align="left"><font size="2" face="serif">At March 31, 2004 the Company&#8217;s backlog of released business reached a quarter-end record $27.0 million. This reflects a 17% increase from the March 31, 2003 backlog of $23.1 million. In addition the Company has an additional $17 million in follow-on options for release in subsequent periods that has not yet been recognized in firm backlog.</font></p>
<p align="left"><font size="2" face="serif">Along with our sales increase, the company has increased its investment in Product Development by 77%.  This investment assures that new Flat Panel and Air Data Systems will be coming to market at the end of calendar 2004.</font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"></a></p>
<p align="left"><font size="2" face="serif">The company will host a conference call today, April 29, 2004 at 10:00 am local time to discuss these results. Please call in to participate at (888) 792-8459. Also, our web site will carry the conference call live and have it available for subsequent listening.</font></p>
<p align="left"><font size="2" face="serif">Headquartered in Exton, PA. Innovative Solutions &amp; Support, Inc. (www.innovative-ss.com) designs, manufactures and markets flight information computers, flat panel displays and advanced monitoring systems that measure and display critical flight information. This includes data relative to aircraft separation (RVSM, Reduced Vertical Separation Minimum), airspeed and altitude as well as engine and fuel measurements.</font></p>
<p align="left"><font size="2" face="serif">Certain matters discussed in this news release, including operating and financial results for future periods, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, either better or worse, from those discussed including other risks and uncertainties reflected in the Company&#8217;s prospectus and Form 10-K annual report on file with the SEC.</font></p>
<p align="left"><font face="serif" size="1">Contact Mr. James Reilly at (610) 646-9800 </font></p>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"></a></p>
<p align="center"><font face="serif" size="2"><b>Innovative Solutions and Support, Inc.<br>Statement of Operations</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top">
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td colspan="4" align="center"><font size="1" face="serif"><b>Three months ended</b></font><br><font size="1" face="serif"><b> March 31,</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td colspan="4" align="center"><font size="1" face="serif"><b>Six months ended</b></font><br><font size="1" face="serif"><b>March 31,</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="center"><hr size="1" noshade></td>
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  <td align="center"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>2003</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>2004</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>2003</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>2004</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right"><hr size="1" noshade>
</td>
<td align="center"><hr size="1" noshade>
</td>
<td align="left"><hr size="1" noshade>
</td>
<td align="right"><hr size="1" noshade>
</td>
<td align="center"><hr size="1" noshade>
</td>
<td align="left"><hr size="1" noshade></td>
<td align="right"><hr size="1" noshade>
</td>
<td align="center"><hr size="1" noshade>
</td>
<td align="left"><hr size="1" noshade>
</td>
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</td>
<td align="center"><hr size="1" noshade>
</td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
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  <td align="right">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">Revenues</font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="1%" align="right"><font size="2" face="serif"> $</font></td>
<td width="12%" align="right"><font size="2" face="serif">  7,122,425 </font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right"><font size="2" face="serif"> $</font></td>
<td width="12%" align="right"><font size="2" face="serif">10,895,287 </font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right"><font size="2" face="serif"> $</font></td>
<td width="12%" align="right"><font size="2" face="serif">11,545,220 </font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="1%" align="right"><font size="2" face="serif"> $</font></td>
<td width="12%" align="right"><font size="2" face="serif">19,418,623 </font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Cost of Sales</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     2,964,740 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     3,662,841 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     5,007,738 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     7,144,252 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
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  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
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<td align="left"><font size="2" face="serif">&nbsp;</font></td>
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<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
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<td align="left"><font size="2" face="serif">Gross profit</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     4,157,685 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     7,232,446 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     6,537,482 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">   12,274,371 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
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  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Research and development</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">       838,586 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     1,488,893 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     1,765,888 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     2,498,169 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">Selling, general and administrative</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     1,478,191 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     1,869,484 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     2,732,333 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     3,510,103 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Operating income</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     1,840,908 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     3,874,069 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     2,039,261 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     6,266,099 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">Interest income </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">       146,314 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">       117,204 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">       329,242 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">       229,875 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Interest expense</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">        (31,441</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">        (31,148</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">        (68,590</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">        (63,003</font></td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">)</font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">Income before income taxes</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     1,955,781 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     3,960,125 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     2,299,913 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">     6,432,971 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Income tax expense</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">       684,523 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     1,386,044 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">       804,969 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">     2,251,540 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">Net Income</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">  1,271,258 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">  2,574,081 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">  1,494,944 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">  4,181,431 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left"><hr size="1" noshade>
  </td>
  <td align="right"><hr size="1" noshade>
  </td>
  <td align="center"><hr size="1" noshade>
  </td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Net Income per Common Share</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Basic</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"> $</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">          0.10 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"> $</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">          0.22 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"> $</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">          0.12 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"> $</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">          0.36 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Diluted</font></div></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">          0.10 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">          0.22 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">          0.12 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">          0.35 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Weighted Average Shares Outstanding</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Basic</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">   12,630,220 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">   11,513,478 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">   12,667,281 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">   11,462,771 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Diluted</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">   12,837,461 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">   11,862,085 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">   12,887,832 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">   11,819,584 </font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2"><b>Innovative Solutions and Support, Inc.<br>Balance Sheet</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top">
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>Actual</b></font><br><font size="1" face="serif"><b>September 30, 2003</b></font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>Actual</b></font><br><font size="1" face="serif"><b>March 31, 2004</b></font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="center" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="center" bgcolor="#FFFFFF"><font size="2" face="serif"><b>ASSETS</b></font></td>
<td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td width="1%" align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td width="14%" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td width="1%" align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td width="14%" align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td width="2%" align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">CURRENT ASSETS:</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Cash
    and cash equivalents</font></div></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">           48,789,744 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">           53,069,748 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Accounts
    receivable</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                6,955,207 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                6,633,766 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Inventories</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">                2,840,648 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">                4,062,529 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Deferred
    income taxes</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                   673,134 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                   673,134 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Prepaid
    expenses</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">660,430</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">642,512</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 6%"><font size="2" face="serif"> Total
    current assets</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">59,919,163</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">65,081,689</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">Property and equipment, net</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">9,548,491</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">9,707,505</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">Other assets</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">408,971</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">143,114</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">TOTAL ASSETS</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">           69,876,625 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">           74,932,308 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="2" noshade></td>
  <td align="left"><hr size="2" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="2" noshade></td>
  <td align="left"><hr size="2" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="center" bgcolor="#FFFFFF"><font size="2" face="serif"><b>LIABILITIES AND SHAREHOLDERS' EQUITY</b></font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">CURRENT LIABILITIES:</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Current
    portion of note payable</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"> $</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                100,000 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif"> $</font></td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                100,000 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Current
    portion of capitalized lease obligation</font></div></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">-</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">                   7,257 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Accounts
    payable</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">578,306 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">1,101,914 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Accrued
    expenses</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">                3,146,409 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">                2,856,652 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Deferred
    revenue</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">98,036</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">182,848</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 6%"><font size="2" face="serif"> Total
    current liabilities</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">3,922,751</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">4,248,671</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Note
    payable</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">4,235,000</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">4,235,000</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Capitalized
    lease obligation</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">&#151;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">24,348</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Deferred
    revenue</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">332,407</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">297,170</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Deferred
    income taxes</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">328,177</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">320,089</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">SHAREHOLDERS' EQUITY:</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="left" bgcolor="#FFFFFF"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Common
    stock</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                    13,081 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">                    13,245 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Additional
    paid-in capital</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">              46,248,224 </font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">              46,815,369 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 3%"><font size="2" face="serif"> Retained
    earnings</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">              25,410,742 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">              29,592,173 </font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><div style="margin-left: 3%"><font size="2" face="serif"> Treasury
    stock</font></div></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(10,613,757</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">(10,613,757</font></td>
<td align="left"><font size="2" face="serif">)</font></td>
</tr>
<tr valign="top">
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="right" bgcolor="#FFFFFF"><hr size="1" noshade></td>
  <td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#FFFFFF"><div style="margin-left: 6%"><font size="2" face="serif"> Total
    shareholders' equity</font></div></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">61,058,290</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF">&nbsp;</td>
<td align="right" bgcolor="#FFFFFF"><font size="2" face="serif">65,807,030</font></td>
<td align="left" bgcolor="#FFFFFF">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="1" noshade></td>
  <td align="left"><hr size="1" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">           69,876,625 </font></td>
<td align="left">&nbsp;</td>
<td align="right"><font size="2" face="serif"> $</font></td>
<td align="right"><font size="2" face="serif">           74,932,308 </font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="2" noshade></td>
  <td align="right"><hr size="2" noshade></td>
  <td align="left">&nbsp;</td>
  <td align="right"><hr size="2" noshade></td>
  <td align="right"><hr size="2" noshade></td>
  <td align="left">&nbsp;</td>
</tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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