<SEC-DOCUMENT>0001161697-18-000082.txt : 20180213
<SEC-HEADER>0001161697-18-000082.hdr.sgml : 20180213
<ACCEPTANCE-DATETIME>20180213172932
ACCESSION NUMBER:		0001161697-18-000082
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180213
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180213
DATE AS OF CHANGE:		20180213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REPRO MED SYSTEMS INC
		CENTRAL INDEX KEY:			0000704440
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				133044880
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12305
		FILM NUMBER:		18605106

	BUSINESS ADDRESS:	
		STREET 1:		24 CARPENTER RD
		CITY:			CHESTER
		STATE:			NY
		ZIP:			10918
		BUSINESS PHONE:		845-469-2042

	MAIL ADDRESS:	
		STREET 1:		24 CARPENTER RD
		CITY:			CHESTER
		STATE:			NY
		ZIP:			10918
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form_8-k.htm
<DESCRIPTION>FORM 8-K CURRENT REPORT FOR 02-13-2018
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<P style="margin:0" align=center><B>UNITED STATES</B></P>
<P style="margin:0" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0" align=center><B>Washington, DC 20549</B></P>
<P style="margin:0" align=center>&nbsp;</P>
<P style="margin:0; font-size:12pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0" align=center>&nbsp;</P>
<P style="margin:0; font-size:12pt" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0; font-size:12pt" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin:0" align=center>&nbsp;</P>
<P style="margin:0" align=center>Date of Report (Date of earliest event reported)&nbsp;&nbsp;&nbsp;<B><U>February 13, 2018</U></B></P>
<P style="margin:0" align=center>&nbsp;</P>
<P style="margin:0; font-size:14pt" align=center><B><U>REPRO MED SYSTEMS, INC.</U></B></P>
<P style="margin:0" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0" align=center>&nbsp;</P>
<TABLE style="margin-top:0; font-size:10pt" cellpadding=0 cellspacing=0 align=center>
<TR><TD style="margin-top:0" valign=top width=240><P style="margin:0" align=center><B><U>New York</U></B></P>
</TD><TD style="margin-top:0" valign=top width=240><P style="margin:0" align=center><B><U>0-12305</U></B></P>
</TD><TD style="margin-top:0" valign=top width=240><P style="margin:0" align=center><B><U>13-3044880</U></B></P>
</TD></TR>
<TR><TD style="margin-top:0" valign=top width=240><P style="margin:0" align=center>(State or other jurisdiction<BR>
of incorporation)</P>
</TD><TD style="margin-top:0" valign=top width=240><P style="margin:0" align=center>(Commission<BR>
File Number)</P>
</TD><TD style="margin-top:0" valign=top width=240><P style="margin:0" align=center>(IRS Employer<BR>
Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0" align=center><BR></P>
<TABLE style="margin-top:0; font-size:10pt" cellpadding=0 cellspacing=0 align=center>
<TR><TD style="margin-top:0" valign=top width=288><P style="margin:0" align=center><B><U>24 Carpenter Road, Chester, New York</U></B></P>
</TD><TD style="margin-top:0" valign=top width=96><P style="margin:0" align=center><B><U>10918</U></B></P>
</TD></TR>
<TR><TD style="margin-top:0" valign=top width=288><P style="margin:0" align=center>(Address of principal executive offices)</P>
</TD><TD style="margin-top:0" valign=top width=96><P style="margin:0" align=center>(Zip Code)</P>
</TD></TR>
</TABLE>
<P style="margin:0" align=center><BR></P>
<P style="margin:0" align=center>Registrant&rsquo;s telephone number, including area code&nbsp;&nbsp;&nbsp;<B><U>(845) 469-2042</U></B></P>
<P style="margin:0" align=center>&nbsp;</P>
<P style="margin:0" align=center><U>not applicable</U></P>
<P style="margin:0" align=center>(Former name or former address, if changed since last report)</P>
<P style="margin:0" align=center>&nbsp;</P>
<P style="margin:0; text-align: justify">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">[ &nbsp;] &nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">[ &nbsp;] &nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">[ &nbsp;] &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">[ &nbsp;] &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">Emerging growth company &nbsp;[_]</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-align: justify">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &nbsp;[_]</P>
<P style="margin:0; text-align: justify">&nbsp;</P>


<HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE><BR>


<P style="margin:0"><B>2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.</B></P>
<P style="margin:0"><BR></P>
<P style="margin:0; text-align: justify">On February 13, 2018, Repro Med Systems, Inc. (the &ldquo;Company&rdquo;) issued a press release announcing its financial results for the three, ten and twelve months ending December 31, 2017. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.</P>
<P style="margin:0"><BR></P>
<P style="margin:0; text-align: justify">The information set forth under Item 8.01 below is incorporated into this Item 2.02 by reference.</P>
<P style="margin:0"><BR></P>
<P style="margin:0; text-align: justify">The information disclosed under Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.</P>
<P style="margin:0"><BR></P>
<P style="margin:0"><B>ITEM 8.01 OTHER EVENTS.</B></P>
<P style="margin:0"><BR></P>
<P style="margin:0; text-align: justify">The Company issued a press release on February 13, 2018 titled &ldquo;RMS Medical Products Announces Results for Three, Ten and Twelve Months Ending December 31, 2017.&rdquo;</P>
<P style="margin:0"><BR></P>
<P style="margin:0"><B>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.</B></P>
<P style="margin:0"><BR></P>
<P style="margin:0; text-align: justify">(d) Exhibits.</P>
<P style="margin:0"><BR></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 720px">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 96"><U>Exhibit No.</U></TD>
    <TD STYLE="width: 624"><U>Description</U></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>99.1</TD>
    <TD><A HREF="ex_99-1.htm">Press release dated February 13, 2018</A></TD></TR>
</TABLE>
<P style="margin:0"><BR></P>
<P style="margin:0; text-align: justify">The press release is furnished herewith as Exhibit 99.1.</P>
<P style="margin:0"><BR></P>
<P style="margin:0"><BR></P>
<P style="margin:0" align=center><B>SIGNATURES</B></P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<P style="margin:0; text-indent:48; text-align: justify">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.</P>
<P style="margin:0">&nbsp;</P>
<TABLE style="margin-top:0; font-size:10pt" cellpadding=0 cellspacing=0 width=100%>
<TR><TD style="margin-top:0" valign=top><P style="margin:0">&nbsp;</P>
</TD><TD style="margin-top:0" valign=top width=360 colspan=2><P style="margin:0">REPRO MED SYSTEMS, INC.<BR>
(Registrant)</P>
</TD></TR>
<TR><TD style="margin-top:0" valign=top><P style="margin:0">&nbsp;</P>
</TD><TD style="margin-top:0" valign=top width=24><P style="margin:0">&nbsp;</P>
</TD><TD style="margin-top:0" valign=top width=336><P style="margin:0">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0" valign=top><P style="margin:0">Date: &nbsp;<U>February 13, 2018</U></P>
</TD><TD style="margin-top:0" valign=top width=24><P style="margin:0">By:</P>
</TD><TD style="margin-top:0" valign=top width=336><P style="margin:0"><U>/s/ Andrew I. Sealfon</U></P>
</TD></TR>
<TR><TD style="margin-top:0" valign=top colspan=2><P style="margin:0">&nbsp;</P>
</TD><TD style="margin-top:0" valign=top width=336><P style="margin:0">Andrew I. Sealfon<BR>
President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0"><BR></P>
<P style="margin:0" align=center>- 2 -</P>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex_99-1.htm
<DESCRIPTION>PRESS RELEASE DATED 02-13-2018
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<P style="margin:0px; font-size:12pt" align=center><B>Exhibit 99.1</B></P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:14pt"><B>RMS Medical Products Announces Results for Three, Ten and Twelve Months Ending December 31, 2017</B></P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=46.667 ></TD><TD width=673.333 ></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.667><P style="margin:0px; font-size:12pt" align=center>&mdash;</P>
</TD><TD style="margin-top:0px" valign=top width=673.333><P style="margin:0px; font-size:12pt"><B>Highest reported twelve month net sales and net income in RMS history </B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.667><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=673.333><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.667><P style="margin:0px; font-size:12pt" align=center>&mdash;</P>
</TD><TD style="margin-top:0px" valign=top width=673.333><P style="margin:0px; font-size:12pt"><B>Double digit percentage growth in net sales</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.667><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=673.333><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.667><P style="margin:0px; font-size:12pt" align=center>&mdash;</P>
</TD><TD style="margin-top:0px" valign=top width=673.333><P style="margin:0px; font-size:12pt"><B>Increased profitability</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">CHESTER, NY / February 13, 2018 / Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) today announced the latest financial results for the three, ten and twelve months ending December 31, 2017. </P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">The selected financial results encompass the periods since the Company&rsquo;s fiscal year ending on February 28, 2017. &nbsp;To facilitate a period-to-period comparison despite the change in the Company&rsquo;s fiscal year, the selected financial results also include the three and twelve-month periods ending December 31, 2017 and 2016. </P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:14pt"><B>Highlights Three Months Ending December 31, 2017 versus 2016</B></P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=48 ></TD><TD width=672 ></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>44% Increase in Net Sales</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>39% Increase in Gross Profit</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>14% Decrease in Operating Expenses as % of Net Sales</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>10% Increase in Net Income as % of Net Sales</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:1pt"><TD width=240.867 ></TD><TD width=87.8 ></TD><TD width=88.2 ></TD><TD width=16.067 ></TD><TD width=87.933 ></TD><TD width=16.067 ></TD><TD width=87.067 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=176 colspan=2><P style="margin:0px" align=center><B>For the Three Months Ended December 31, </B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=87.8><P style="margin:0px" align=center><B>2017</B></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88.2><P style="margin:0px" align=center><B>2016</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=87.933><P style="margin:0px" align=center><B>$ Change</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=87.067><P style="margin:0px" align=center><B>% Change</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=240.867><P style="margin:0px">Net Sales</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>$4,125,480</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$2,871,142</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.933><P style="margin:0px; margin-right:9.6px" align=right>$1,254,338</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>43.7%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=240.867><P style="margin:0px">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>$2,490,196</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$1,790,629</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.933><P style="margin:0px; margin-right:9.6px" align=right>$699,567</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>39.1%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px">Gross Profit as % of Net Sales</P>
</TD><TD style="margin-top:0px" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>60.4%</P>
</TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>62.4%</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>-2.0%</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=240.867><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.933><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px">Operating Expenses</P>
</TD><TD style="margin-top:0px" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>$2,138,022</P>
</TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$1,878,810</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; margin-right:9.6px" align=right>$259,212</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>13.8%</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=240.867><P style="margin:0px">Operating Expenses as % of Net Sales</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>51.8%</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>65.4%</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.933><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>-13.6%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=240.867><P style="margin:0px">Net Income</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>$278,370</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$(90,492)</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.933><P style="margin:0px; margin-right:9.6px" align=right>$368,862</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>N/A</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=240.867><P style="margin:0px">Net Income as % of Net Sales</P>
</TD><TD style="margin-top:0px" valign=bottom width=87.8><P style="margin:0px; margin-right:9.6px" align=right>6.7%</P>
</TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>-3.2%</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.067><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.067><P style="margin:0px; margin-right:9.6px" align=right>9.9%</P>
</TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>

<HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE><BR>

<P style="margin:0px; font-size:14pt"><B>Highlights Twelve Months Ending December 31, 2017 versus 2016</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=48 ></TD><TD width=672 ></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>25% Increase in Net Sales</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>21% Increase in Gross Profit</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>12% Decrease in Operating Expenses as % of Net Sales</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px; font-size:12pt" align=center>&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=672><P style="margin:0px; font-size:12pt"><B>&nbsp;&nbsp;7% Increase in Net Income as % of Net Sales</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:1pt"><TD width=241.2 ></TD><TD width=87.6 ></TD><TD width=88.2 ></TD><TD width=16.2 ></TD><TD width=88.8 ></TD><TD width=16.2 ></TD><TD width=85.8 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=175.8 colspan=2><P style="margin:0px" align=center><B>For the Twelve Months Ended December 31, </B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=87.6><P style="margin:0px" align=center><B>2017</B></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88.2><P style="margin:0px" align=center><B>2016</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88.8><P style="margin:0px" align=center><B>$ Change</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=85.8><P style="margin:0px" align=center><B>% Change</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=241.2><P style="margin:0px">Net Sales</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>$15,442,712</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$12,364,285</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.8><P style="margin:0px; margin-right:9.6px" align=right>$3,078,427</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>24.9%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=241.2><P style="margin:0px">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>$9,268,107</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$7,680,895</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.8><P style="margin:0px; margin-right:9.6px" align=right>$1,587,212</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>20.7%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px">Gross Profit as % of Net Sales</P>
</TD><TD style="margin-top:0px" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>60.0%</P>
</TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>62.1%</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>-2.1%</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=241.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.8><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px">Operating expenses</P>
</TD><TD style="margin-top:0px" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>$8,127,155</P>
</TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$8,011,457</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; margin-right:9.6px" align=right>$115,698</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>1.4%</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=241.2><P style="margin:0px">Operating expenses as % of Net Sales</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>52.6%</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>64.8%</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.8><P style="margin:0px; margin-right:9.6px" align=right>&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>-12.2%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=87.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=241.2><P style="margin:0px">Net Income</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>$819,547</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>$(216,123)</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=88.8><P style="margin:0px; margin-right:9.6px" align=right>$1,035,670</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=16.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#F2F2F2" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>N/A</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=241.2><P style="margin:0px">Net Income as % of Net Sales</P>
</TD><TD style="margin-top:0px" valign=bottom width=87.6><P style="margin:0px; margin-right:9.6px" align=right>5.3%</P>
</TD><TD style="margin-top:0px" valign=bottom width=88.2><P style="margin:0px; margin-right:9.6px" align=right>-1.7%</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=88.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=85.8><P style="margin:0px; margin-right:9.6px" align=right>7.0%</P>
</TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">Growth in net sales in 2017 was driven principally by increased volume with our existing customers domestically and internationally in all major product categories. &nbsp;The launch of a new drug generated increased needle sales and we believe the new 510(k) clearance by the FDA for the RMS &ldquo;Integrated Catch-Up Freedom Syringe Drive Infusion System&rdquo; on August 31, 2017, which includes specific clearance for Cuvitru&reg; and Hizentra&reg;, also contributed in part to increased sales. Internationally, we gained business in several new countries, a current distributor has expanded its home infusion business, and facilitated subcutaneous immunoglobulin gained traction in Europe. &nbsp;Also contributing to the 2017 increase was a backlog at December 31, 2016 of $0.3 million, which was filled during the current period. Excluding this backlog, net sales grew 20.2% for the twelve month period ending December 31, 2017.</P>
<P style="margin:0px; font-size:12pt"><B>&nbsp;</B></P>
<P style="margin:0px; font-size:12pt">The increase in gross profit was driven by the increase in net sales, which was partially offset by the increase in higher salary and related benefits costs from overtime and the addition of a second shift to meet increased demand. &nbsp;Furthermore, increased scrap during quality inspections also negatively impacted gross profit and the gross margin. &nbsp;In January 2018, we implemented a nondestructive testing protocol to reduce scrap.</P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">Andy Sealfon, RMS Chief Executive Officer commented, &ldquo;I am so pleased to announce that due to the outstanding performance and expanded market acceptance of our FREEDOM Syringe Infusion System, as well as the confirmation by the FDA of the unique technology supporting the use of our system for subcutaneous medications including Hizentra&reg; and Cuvitru&reg;, as well as for intravenous uses such as antibiotics, we experienced our best year ever in the Company&rsquo;s history for net sales and profitability.&nbsp; With new markets opening, planned introduction of new products this year, multiple new clinical trials underway, and international market expansions, we believe we are well positioned for future growth.&rdquo;</P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt" align=center>- 2 -</P>

<HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE><BR>

<P style="margin:0px; font-size:12pt">For consistency in disclosure presented in our Form 10-K for the period ending December 31, 2017 as required by SEC regulations, we are providing a presentation of the ten months ending December 31, 2017 versus twelve months ending February 28, 2017 as a result of our fiscal year end change. &nbsp;The variations in this presentation are due to the comparison of a ten month period versus a twelve month period. &nbsp;However, net sales in the ten month period were higher than the twelve month period, also due to volume increases with our existing customers domestically and internationally in all major product categories for the same reasons stated above. &nbsp;See Selected Financial Results attached.</P>
<P style="margin:0px; font-size:12pt"><B>&nbsp;</B></P>
<P style="margin:0px; font-size:12pt"><B>About RMS Medical Products</B></P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">The Company manufactures medical products used for home infusions and suctioning. The FREEDOM Syringe Infusion System currently includes the FREEDOM60<SUP>&reg;</SUP> and FreedomEdge<SUP>&reg; </SUP>Syringe Infusion Drivers, RMS Precision Flow Rate Tubing<SUP><font style='font-family:Arial Unicode MS,Times New Roman'>&trade;</font> </SUP>and RMS HIgH-Flo<SUP> </SUP>Subcutaneous Safety Needle Sets<SUP><font style='font-family:Arial Unicode MS,Times New Roman'>&trade;</font></SUP>. These devices are used for infusions administered in professional healthcare settings as well as at home. The Company&rsquo;s RES-Q-VAC<SUP>&reg;</SUP> line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers. </P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">The Company&rsquo;s website may be visited at <U>www.rmsmedicalproducts.com</U>. </P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt">This press release includes &ldquo;forward-looking statements&rdquo; within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms term &ldquo;believe&rdquo; to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company&rsquo;s reports and registration statements filed with the Securities and Exchange Commission. &nbsp;The results of operations for the periods presented herein are not necessarily indicative of the results to be expected in the future.</P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt; color:#FF0000">For more information please call:</P>
<P style="margin:0px; font-size:12pt; color:#FF0000">Mike King</P>
<P style="margin:0px; font-size:12pt; color:#FF0000">702 650 3000</P>
<P style="margin:0px; font-size:12pt; color:#FF0000">Princeton Research</P>
<P style="margin:0px; font-size:12pt; color:#FF0000">SOURCE: RMS Medical Products </P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt" align=center>- 3 -</P>

<HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE><BR>

<P style="margin:0px; font-size:12pt" align=center><B>SELECTED FINANCIAL RESULTS</B></P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:1pt"><TD width=297.6 ></TD><TD width=21.8 ></TD><TD width=10.933 ></TD><TD width=76.733 ></TD><TD width=21.733 ></TD><TD width=10.933 ></TD><TD width=77.733 ></TD><TD width=10.133 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=198.067 colspan=5><P style="margin:0px" align=center><B>For the Three Months Ended<BR>
December 31,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=87.667 colspan=2><P style="margin:0px" align=center><B>2017</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88.667 colspan=2><P style="margin:0px" align=center><B>2016</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">NET SALES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px" align=right>4,125,480</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px" align=right>2,871,142</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Cost of goods sold</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=76.733><P style="margin:0px" align=right>1,635,284</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right>1,080,513</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px" align=right>2,490,196</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px" align=right>1,790,629</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">OPERATING EXPENSES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Selling, general and administrative</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px" align=right>2,057,616</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px" align=right>1,742,701</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Research and development</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px" align=right>3,023</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px" align=right>52,315</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Depreciation and amortization</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=76.733><P style="margin:0px" align=right>77,383</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right>83,794</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">Total Operating Expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=76.733><P style="margin:0px" align=right>2,138,022</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right>1,878,810</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">Net Operating Profit/(Loss)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px" align=right>352,174</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px" align=right>(88,181</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=297.6><P style="margin:0px">Non-Operating (Income)/Expense</P>
</TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#D9D9D9" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=297.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">Interest expense</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=76.733><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=77.733><P style="margin:0px" align=right>1,930</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=297.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">(Income)/loss on foreign currency exchange</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=76.733><P style="margin:0px" align=right>(3,487</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=21.733><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=77.733><P style="margin:0px" align=right>46,820</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">Other expense and interest income, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=76.733><P style="margin:0px" align=right>(1,316</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right>(323</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">INCOME (LOSS) BEFORE TAXES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px" align=right>356,977</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px" align=right>(136,608</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Income Tax (Expense) Benefit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=76.733><P style="margin:0px" align=right>(78,607</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=77.733><P style="margin:0px" align=right>46,116</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">NET INCOME (LOSS)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=76.733><P style="margin:0px" align=right>278,370</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right>(90,492</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=10.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">NET INCOME (LOSS) PER SHARE</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Basic</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=76.733><P style="margin:0px" align=right>0.01</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right>0.00</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Diluted</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=76.733><P style="margin:0px" align=right>0.01</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right>0.00</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:8.6px; text-indent:-8.6px">WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=76.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Basic</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=76.733><P style="margin:0px" align=right>37,994,298</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right>37,754,723</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Diluted</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=76.733><P style="margin:0px" align=right>38,649,178</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.933><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77.733><P style="margin:0px" align=right>37,802,342</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.133><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt" align=center>- 4 -</P>

<HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE><BR>

<P style="margin:0px; font-size:12pt" align=center><B>SELECTED FINANCIAL RESULTS</B></P>
<P style="margin:0px">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:1pt"><TD width=297.6 ></TD><TD width=21.6 ></TD><TD width=11 ></TD><TD width=77 ></TD><TD width=22 ></TD><TD width=10.6 ></TD><TD width=77.4 ></TD><TD width=11 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=198 colspan=5><P style="margin:0px" align=center><B>For the Twelve Months Ended<BR>
December 31,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88 colspan=2><P style="margin:0px" align=center><B>2017</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88 colspan=2><P style="margin:0px" align=center><B>2016</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">NET SALES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px" align=right>15,442,712</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px" align=right>12,364,285</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Cost of goods sold</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=77><P style="margin:0px; margin-left:-35.467px" align=right>6,174,605</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=77.4><P style="margin:0px" align=right>4,683,390</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px" align=right>9,268,107</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px" align=right>7,680,895</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">OPERATING EXPENSES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Selling, general and administrative</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px" align=right>7,731,972</P>
</TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px" align=right>7,468,724</P>
</TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Research and development</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px" align=right>88,621</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px" align=right>246,551</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Depreciation and amortization</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px" align=right>306,562</P>
</TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px" align=right>296,182</P>
</TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">Total Operating Expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=77><P style="margin:0px" align=right>8,127,155</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=77.4><P style="margin:0px" align=right>8,011,457</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">Net Operating Profit/(Loss)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px" align=right>1,140,952</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px" align=right>(330,562</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">Non-Operating (Income)/Expense</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=297.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">Interest expense</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=77><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=77.4><P style="margin:0px" align=right>5,298</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=297.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">(Income)/loss on foreign currency exchange</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=77><P style="margin:0px" align=right>(65,651</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=22><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=77.4><P style="margin:0px" align=right>37,594</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">Other expense and interest income, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=77><P style="margin:0px" align=right>(3,743</P>
</TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=77.4><P style="margin:0px" align=right>(2,545</P>
</TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">INCOME (LOSS) BEFORE TAXES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px" align=right>1,210,346</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px" align=right>(370,909</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Income Tax (Expense) Benefit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=77><P style="margin:0px" align=right>(390,799</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=77.4><P style="margin:0px" align=right>154,786</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">NET INCOME (LOSS)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77><P style="margin:0px" align=right>819,547</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77.4><P style="margin:0px" align=right>(216,123</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=11><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">NET INCOME (LOSS) PER SHARE</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Basic</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77><P style="margin:0px" align=right>0.02</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77.4><P style="margin:0px" align=right>(0.01</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Diluted</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=77><P style="margin:0px" align=right>0.02</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=77.4><P style="margin:0px" align=right>(0.01</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=11><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:8.6px; text-indent:-8.6px">WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=77.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Basic</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=77><P style="margin:0px" align=right>37,873,755</P>
</TD><TD style="margin-top:0px" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=77.4><P style="margin:0px" align=right>37,877,463</P>
</TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=297.6><P style="margin:0px; margin-left:17.4px">Diluted</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77><P style="margin:0px" align=right>38,393,836</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=22><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=77.4><P style="margin:0px" align=right>37,925,082</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt" align=center>- 5 -</P>

<HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE><BR>

<P style="margin:0px; font-size:12pt" align=center><B>SELECTED FINANCIAL RESULTS</B></P>
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:1pt"><TD width=303.6 ></TD><TD width=21.6 ></TD><TD width=11 ></TD><TD width=86.2 ></TD><TD width=21.6 ></TD><TD width=11 ></TD><TD width=86.8 ></TD><TD width=10.8 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=97.2 colspan=2><P style="margin:0px" align=center><B>For the Ten Months Ended December 31, 2017</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=97.8 colspan=2><P style="margin:0px" align=center><B>For the Twelve Months Ended February 28, 2017</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">NET SALES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px" align=right>13,313,894</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px" align=right>12,293,655</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Cost of goods sold</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=86.2><P style="margin:0px" align=right>5,174,946</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1px solid #000000" valign=bottom width=86.8><P style="margin:0px" align=right>4,724,097</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px" align=right>8,138,948</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px" align=right>7,569,558</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">OPERATING EXPENSES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Selling, general and administrative</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px" align=right>6,594,570</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px" align=right>7,767,712</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Research and development</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px" align=right>50,587</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px" align=right>237,486</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Depreciation and amortization</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=86.2><P style="margin:0px" align=right>257,257</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=86.8><P style="margin:0px" align=right>300,611</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">Total Operating Expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=86.2><P style="margin:0px" align=right>6,902,414</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=86.8><P style="margin:0px" align=right>8,305,809</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">Net Operating Profit/(Loss)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px" align=right>1,236,534</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px" align=right>(736,251</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">Non-Operating (Income)/Expense</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=303.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">Interest expense</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=86.2><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=86.8><P style="margin:0px" align=right>1,886</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=303.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">(Income)/loss on foreign currency exchange</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=86.2><P style="margin:0px" align=right>(68,566</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=21.6><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=86.8><P style="margin:0px" align=right>41,499</P>
</TD><TD style="margin-top:0px; background-color:#DDDDDD" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; margin-left:35.6px; text-indent:-17.067px">Other expense and interest income, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=86.2><P style="margin:0px" align=right>(2,420</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=86.8><P style="margin:0px" align=right>(2,937</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">INCOME (LOSS) BEFORE TAXES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px" align=right>1,307,520</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px" align=right>(776,699</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Income Tax (Expense) Benefit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=86.2><P style="margin:0px" align=right>(402,563</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=86.8><P style="margin:0px" align=right>241,700</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">NET INCOME (LOSS)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.2><P style="margin:0px" align=right>904,957</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px" align=right>(534,999</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=10.8><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">NET INCOME (LOSS) PER SHARE</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Basic</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.2><P style="margin:0px" align=right>0.02</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px" align=right>(0.01</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Diluted</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=86.2><P style="margin:0px" align=right>0.02</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px" align=right>(0.01</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=10.8><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; margin-left:8.6px; text-indent:-8.6px">WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Basic</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=86.2><P style="margin:0px" align=right>37,897,632</P>
</TD><TD style="margin-top:0px" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px" align=right>37,830,581</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=303.6><P style="margin:0px; margin-left:17.4px">Diluted</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.2><P style="margin:0px" align=right>38,445,482</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=21.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=11><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px" align=right>37,878,201</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=10.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
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<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px; font-size:12pt" align=center>- 6 -</P>

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