<SEC-DOCUMENT>0001161697-19-000472.txt : 20191105
<SEC-HEADER>0001161697-19-000472.hdr.sgml : 20191105
<ACCEPTANCE-DATETIME>20191105171354
ACCESSION NUMBER:		0001161697-19-000472
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20191105
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191105
DATE AS OF CHANGE:		20191105

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:	001-39086
		FILM NUMBER:		191194266

	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 11-05-2019
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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>November 5, 2019</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>
<P style="margin:0; text-align: justify">Securities registered pursuant to Section 12(b) of the Act:</P>
<P style="margin:0; text-align: justify">&nbsp;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-top: 0px; font-size: 10pt"><TR height=0 style="font-size:1pt"><TD STYLE="width: 2.5in"></TD><TD STYLE="width: 2.5in"></TD><TD STYLE="width: 2.5in"></TD></TR>
<TR><TD STYLE="margin-top: 0px; vertical-align: top"><P style="margin:0px"><U>Title of each class</U></P>
</TD><TD STYLE="margin-top: 0px; vertical-align: top"><P style="margin:0px"><U>Trading symbol(s)</U></P>
</TD><TD STYLE="margin-top: 0px; vertical-align: top"><P style="margin:0px"><U>Name of each exchange on which registered</U></P>
</TD></TR>
<TR><TD STYLE="margin-top: 0px; vertical-align: top"><P style="margin:0px"><B>common stock, $0.01 par value</B></P>
</TD><TD STYLE="margin-top: 0px; vertical-align: top"><P style="margin:0px"><B>KRMD</B></P>
</TD><TD STYLE="margin-top: 0px; vertical-align: top"><P style="margin:0px"><B>NASDAQ Capital Market</B></P>
</TD></TR>
</TABLE>
<P style="margin:0; text-align: justify">&nbsp;</P>

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<P style="margin:0"><B>ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.</B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">On November 5, 2019, Repro Med Systems, Inc. dba KORU Medical Systems (&ldquo;KORU&rdquo;) issued a press
release announcing its operating and financial results for the three and nine months ended September 30, 2019 and a related conference
call to be held on November 6, 2019 at 9am ET.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">KORU is making reference to non-GAAP financial information in both the press release and the conference call.
A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is furnished and
shall not be deemed &ldquo;filed&rdquo; for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0"><B>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.</B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0; text-align: justify">(d) Exhibits.</P>
<P style="margin:0px; text-align: justify"><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 November 5, 2019</A></TD></TR>
</TABLE>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><BR></P>

<P style="margin:0" align=center><B>SIGNATURES</B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0; text-indent:0; 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:0px; text-align: justify"><BR></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>November 5, 2019</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/ Karen Fisher</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">Karen Fisher<BR>
Chief Financial 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 NOVEMBER 5, 2019
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<P style="margin:0px" align=center><B>Exhibit 99.1</B></P>

<P style="margin:0px">&nbsp;</P>

<P style="margin:0px"><img src="koru_logo.jpg"></P>

<P style="margin:0px">&nbsp;</P>

<P style="margin:0px; font-size:14pt" align=center><B><U>For Immediate Release</U></B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:14pt" align=center><B><U>KORU Medical Systems Announces Record 2019 Third Quarter Financial Results</U></B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B><U>Conference Call Scheduled for November 6 at 9:00 am ET</U></B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt"><B><U>Q3 2019 Highlights</U></B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;Net sales rose 45.5% to a record $6.6 million</P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin improved to 66.2%</P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;Operating profit increased 70.8% to $0.8 million</P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;Net income rose to $0.7 million, or $0.02 per diluted share</P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA up 88.8% to $2.1 million</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify"><B>CHESTER, NY &ndash; November 5, 2019 &ndash; Repro Med Systems, Inc. dba KORU Medical Systems (NASDAQ: KRMD) (the &ldquo;Company&rdquo;)</B> today announced financial results for the third quarter (&ldquo;Q3 2019&rdquo;) ended September 30, 2019.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">&ldquo;Our strong performance continued through Q3 2019,&rdquo; said Don Pettigrew, President and CEO of KORU Medical Systems. &nbsp;&ldquo;Net sales increased over 45% from Q3 2018, representing the third consecutive quarter of record net sales, and gross margin improved to over 66%. &nbsp;We continue to penetrate our primary disease state end markets, the growth of which we attribute to increasing awareness and diagnosis of PIDD and expanded therapeutic indications for CIDP. &nbsp;Our Freedom Syringe Infusion System is also being utilized in multiple clinical trials associated with the development of new subcutaneous therapies, which is an important component of our long-term growth strategy.&rdquo;</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Mr. Pettigrew concluded, &ldquo;We also completed two significant corporate developments: the listing of our common stock on NASDAQ effective October 17 and our corporate re-branding to KORU Medical Systems. &nbsp;We believe that both developments reflect our continuing growth as a public company, and the new life and beginnings we provide to patients worldwide.&rdquo;</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify"><B><U>Q3 2019 Overview</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Net sales rose 45.5% to $6.6 million in Q3 2019 from $4.5 million in Q3 2018. &nbsp;Growth was driven primarily by the Company&rsquo;s continued success in expanding its presence in the Primary Immune Deficiency Disease (&ldquo;PIDD&rdquo;) and Chronic Inflammatory Demyelinating Polyneuropathy (&ldquo;CIDP&rdquo;) markets, as well as large orders from a domestic distributor, a new customer in Europe, and clinical trials. &nbsp;We cannot predict whether such large distributor orders or volume generally will continue in the future.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Gross profit in Q3 2019 rose to $4.4 million, or 66.2% of net sales, from $2.9 million, or 63.6% of net sales, in Q3 2018. &nbsp;Higher gross profit and gross margin were primarily driven by increased net sales and price increases.</P>
<P style="margin:0px; text-align: justify"><BR></P>

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

<P style="margin:0px; font-size:11pt; text-align: justify">Total operating expenses for Q3 2019 rose to $3.6 million from $2.4 million in Q3 2018. &nbsp;Selling, general &amp; administrative (&ldquo;SG&amp;A&rdquo;) expenses were $2.4 million, or 36.9% of net sales, compared to $1.9 million, or 42.2% of net sales in Q3 2018. &nbsp;Litigation costs increased to $0.9 million from $0.3 million in Q3 2018. &nbsp;The Company received its second consecutive favorable judgment in the litigation with EMED Technologies Corp. on August 30, 2019. &nbsp;KORU Medical Systems has filed motions for reimbursement of court costs and attorneys&rsquo; fees subsequent to the receipt of both judgements.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Net income for Q3 2019 rose to $0.7 million, or $0.02 per diluted share, from net income of $0.4 million, or $0.01 per diluted share, in Q3 2018.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Q3 2019 Adjusted EBITDA rose to $2.1 million, or 31.5% of net sales, from Adjusted EBITDA of $1.1 million, or 24.3% of net sales, in Q3 2018. &nbsp;Adjusted EBITDA excludes from net income: tax expense, depreciation and amortization, interest income, operating expenses associated with the company&rsquo;s organizational changes prior to March 31, 2019, litigation costs, and stock option expense.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Cash and equivalents as of September 30, 2019 was $5.1 million. &nbsp;Cash flow of $1.4 million for the first nine months of 2019 included a $2.1 million increase in accounts receivable reflecting a change in payment terms by a large distributor of our products from net 30 days to net 60 days, as well as a $0.6 million increase in inventory to commensurate with sales growth. &nbsp;These increases were partially offset by $1.5 million in proceeds realized from the maturation of a Certificate of Deposit in Q2 2019 and $0.5 million associated with the exercise of warrants and options during the period.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify"><B><U>Non-GAAP Measures</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">This press release includes the non-GAAP financial measures of &ldquo;Adjusted EBITDA&rdquo; that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial results. A reconciliation of our non-GAAP measures is included in an attachment to this press release.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify"><B><U>Conference Call</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Management will host a conference call on Wednesday, November 6, 2019 at 9:00 am ET to discuss Q3 2019 results and business activities.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Interested parties may participate in the call by dialing:</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;(877) 407-9753 (<I>Domestic</I>) or</P>
<P style="margin:0px; font-size:11pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;(201) 493-6739 (<I>International</I>)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt">Webcast registration:&nbsp;Click Here </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt">Following the live call, a replay will be available for six months on the Company&rsquo;s website, www.korumedical.com<U> </U>under &ldquo;Investor Relations.&rdquo;</P>
<P style="margin:0px"><BR></P>

<P style="margin:0px; font-size:11pt" 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:11pt; text-align: justify"><B><U>About KORU Medical Systems</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">KORU Medical Systems manufactures and commercializes innovative and easy-to-use specialty infusion solutions that improve quality of life for patients around the world. &nbsp;The FREEDOM Syringe Infusion System currently includes the FREEDOM60<SUP>&reg;</SUP> and FreedomEdge<SUP>&reg;</SUP> Syringe Infusion Drivers, Precision Flow Rate Tubing<SUP><font style='font-family:Arial Unicode MS,Times New Roman'>&trade;</font></SUP> and HIgH-Flo 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 the home and alternate care settings. &nbsp;For more information about the Company, please visit www.korumedical.com.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify"><B><U>Forward-looking Statements</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">This press release contains &ldquo;forward-looking statements&rdquo; within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as &ldquo;continue&rdquo; and &ldquo;believe,&rdquo; and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: introduction of competitive products; availability of insurance reimbursement; changes in U.S. Food and Drug Administration regulations; changes to health care policies; success of our research and development efforts; our ability to raise capital if or when needed; acceptance of and demand for new and existing products; expanded market acceptance of the FREEDOM Syringe Infusion System; our ability to obtain required governmental approvals; success in enforcing and obtaining patents; continued performance by principal suppliers; continued customer preference to work through distributors; continued service of key personnel and attracting and maintaining new personnel; the costs, duration and ultimate outcome of litigation; and general economic and business conditions.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt; text-align: justify">Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; font-size:11pt"><B>Contacts:</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt"><B>The Equity Group Inc.</B></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=360 ></TD><TD width=360 ></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">Devin Sullivan</P>
</TD><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">Kalle Ahl, CFA</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">Senior Vice President</P>
</TD><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">Vice President</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">212-836-9608</P>
</TD><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">212-836-9614</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">mailto:dsullivan@equityny.com</P>
</TD><TD style="margin-top:0px" valign=top width=360><P style="margin:0px; font-size:11pt">kahl@equityny.com</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>

<P style="margin:0px; font-size:11pt" 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:11pt" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>BALANCE SHEETS</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=492.533 ></TD><TD width=9.8 ></TD><TD width=9.8 ></TD><TD width=86.8 ></TD><TD width=15.4 ></TD><TD width=9.067 ></TD><TD width=86.333 ></TD><TD width=9.8 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.6 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>September 30,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.4 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>December 31,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.6 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.4 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2018</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.6 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>(Unaudited)</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt" align=center><B>ASSETS</B></P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">CURRENT ASSETS</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Cash and cash equivalents</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>5,129,028</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>3,738,803</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Certificates of deposit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>1,517,927</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:56.2px; margin-right:3.6px; text-indent:-18.8px; font-size:11pt">Accounts receivable less allowance for doubtful accounts of $36,609 at September 30, 2019 and $37,500 at December 31, 2018</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>3,546,634</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>1,425,854</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Inventory &nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>2,738,682</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>2,103,879</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Prepaid expenses</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>453,151</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>246,591</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">TOTAL CURRENT ASSETS </P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>11,867,495</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>9,033,054</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">Property and equipment, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>636,928</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>858,781</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:18.8px; text-indent:-18.8px; font-size:11pt">Patents, net of accumulated amortization of $273,846 and $239,581 at September 30, 2019 and December 31, 2018, respectively</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>786,164</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>632,156</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">Right of use assets, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>406,954</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">Deferred tax asset</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>1,466</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">Other assets</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>19,582</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>19,582</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">TOTAL ASSETS</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>13,717,123</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>10,545,039</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt" align=center><B>LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</B></P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">CURRENT LIABILITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Deferred capital gain - current </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>3,763</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Accounts payable</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>874,977</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>453,498</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Accrued expenses</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>1,178,702</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>688,649</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Accrued payroll and related taxes</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>111,359</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>421,714</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Accrued tax liability </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>16,608</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Finance lease liability - current</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>3,242</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Operating lease liability - current</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>135,275</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">TOTAL CURRENT LIABILITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>2,303,555</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>1,584,232</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">Deferred tax liability</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>133,097</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">Operating lease liability, net of current portion</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>271,679</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">TOTAL LIABILITIES</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>2,708,331</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>1,584,232</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">STOCKHOLDERS&rsquo; EQUITY</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:56.2px; text-indent:-18.8px; font-size:11pt">Common stock, $0.01 par value; 75,000,000 shares authorized, 42,228,658 and 40,932,911 shares issued, 39,491,427 and 38,195,680 shares outstanding at September 30, 2019 and December 31, 2018, respectively</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>422,286</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>409,329</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Additional paid-in capital</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>5,985,636</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>4,595,214</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:37.4px; font-size:11pt">Retained earnings</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&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; font-size:11pt" align=right>4,945,074</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>4,300,468</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; margin-left:42.733px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>11,352,996</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>9,305,011</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; margin-left:18.8px; text-indent:-18.8px; font-size:11pt">Less: Treasury stock, 2,737,231 shares at September 30, 2019 and December 31, 2018, respectively, at cost</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&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; font-size:11pt" align=right>(344,204</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>(344,204</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">TOTAL STOCKHOLDERS&rsquo; EQUITY</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>11,008,792</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>8,960,807</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=492.533><P style="margin:0px; font-size:11pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.8><P style="margin:0px; font-size:11pt" align=right>13,717,123</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=86.333><P style="margin:0px; font-size:11pt" align=right>10,545,039</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:11pt" align=center>The accompanying notes are an integral part of these financial statements</P>
<P style="margin:0px" align=center><BR></P>

<P style="margin:0px; font-size:11pt" 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:11pt" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>STATEMENTS OF OPERATIONS</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>(UNAUDITED)</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=250.333 ></TD><TD width=8.933 ></TD><TD width=10.067 ></TD><TD width=91.133 ></TD><TD width=15.4 ></TD><TD width=10.067 ></TD><TD width=91.267 ></TD><TD width=15.4 ></TD><TD width=10.067 ></TD><TD width=90.733 ></TD><TD width=16.133 ></TD><TD width=10.067 ></TD><TD width=91.733 ></TD><TD width=8.667 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=217.933 colspan=5><P style="margin:0px; font-size:11pt" align=center><B>For the<BR>
Three Months Ended</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=218.733 colspan=5><P style="margin:0px; font-size:11pt" align=center><B>For the<BR>
Nine Months Ended</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=217.933 colspan=5><P style="margin:0px; font-size:11pt" align=center><B>September 30,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=218.733 colspan=5><P style="margin:0px; font-size:11pt" align=center><B>September 30,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=101.2 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=101.333 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2018</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=100.8 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=101.8 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2018</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">NET SALES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>6,617,397</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>4,547,187</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>16,940,487</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>13,082,737</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Cost of goods sold</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>2,234,489</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>1,655,619</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>6,033,961</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>4,985,761</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>4,382,908</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>2,891,568</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>10,906,526</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>8,096,976</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">OPERATING EXPENSES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Selling, general and administrative</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>2,441,381</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>1,917,127</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>6,976,684</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>5,513,727</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Litigation </P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>864,009</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>286,487</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>2,481,471</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>592,787</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Research and development</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>170,260</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>126,923</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>450,454</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>160,735</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Depreciation and amortization</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>82,774</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>78,345</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>252,594</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>228,900</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Total Operating Expenses</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>3,558,424</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>2,408,882</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>10,161,203</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>6,496,149</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Net Operating Profit</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>824,484</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>482,686</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>745,323</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>1,600,827</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Non-Operating Income/(Expense)</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Loss on currency exchange </P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>(9,358</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>(5,842</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>(20,283</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>(16,256</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; font-size:11pt">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Gain on disposal of fixed asset, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>6,000</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>49,740</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>6,000</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Interest, net and other income, net</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>23,368</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>6,972</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>59,091</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>13,088</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">TOTAL OTHER INCOME</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>14,010</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>7,130</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>88,548</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>2,832</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">INCOME BEFORE TAXES</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>838,494</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>489,816</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>833,871</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>1,603,659</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Income Tax Expense</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>(186,681</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>(103,263</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>(189,265</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>(337,956</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; font-size:11pt">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">NET INCOME</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>651,813</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>386,553</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>644,606</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>1,265,703</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">NET INCOME PER SHARE</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Basic</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>0.02</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>0.01</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>0.02</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>0.03</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Diluted</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>0.02</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>0.01</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>0.02</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>0.03</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.267><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=90.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=91.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Basic</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>39,022,298</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>38,194,682</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>38,534,021</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>38,104,393</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=250.333><P style="margin:0px; font-size:11pt">Diluted</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.133><P style="margin:0px; font-size:11pt" align=right>39,298,408</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.267><P style="margin:0px; font-size:11pt" align=right>38,985,684</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=90.733><P style="margin:0px; font-size:11pt" align=right>38,734,083</P>
</TD><TD style="margin-top:0px" valign=bottom width=16.133><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=91.733><P style="margin:0px; font-size:11pt" align=right>38,875,737</P>
</TD><TD style="margin-top:0px" valign=bottom width=8.667><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:11pt" align=center>The accompanying notes are an integral part of these financial statements</P>
<P style="margin:0px" align=center><BR></P>

<P style="margin:0px; font-size:11pt" 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:11pt" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>STATEMENTS OF CASH FLOWS</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>(UNAUDITED)</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:11pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=471 ></TD><TD width=9.667 ></TD><TD width=10.533 ></TD><TD width=96.133 ></TD><TD width=15.4 ></TD><TD width=10.533 ></TD><TD width=96.6 ></TD><TD width=9.933 ></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.667><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=229.2 colspan=5><P style="margin:0px" align=center><B>For the Nine Months Ended</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.933><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=471><P style="margin:0px" align=center><B>&nbsp;</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.667><P style="margin:0px" align=center><B>&nbsp;</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=top width=229.2 colspan=5><P style="margin:0px" align=center><B>September 30,</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.933><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=top width=106.667 colspan=2><P style="margin:0px" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=top width=107.133 colspan=2><P style="margin:0px" align=center><B>2018</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">CASH FLOWS FROM OPERATING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Net Income </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>644,606</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>1,265,703</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:24.267px; text-indent:-8.533px">Adjustments to reconcile net income to net cash (used in)/provided by operating activities:</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Stock based compensation expense </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>897,300</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>154,925</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Depreciation and amortization</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>252,594</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>228,900</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Deferred capital gain - building lease</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(3,763</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>(16,860</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Deferred taxes</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>134,563</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>10,834</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Gain on disposal of fixed asset</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(49,740</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>(6,000</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Changes in operating assets and liabilities:</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">(Increase)/Decrease in accounts receivable</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(2,120,780</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>351,319</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Increase in inventory</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>(634,803</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>(290,722</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Increase in prepaid expense and other assets</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(206,560</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>(177,346</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Increase in accounts payable</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>421,479</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>137,521</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Decrease in accrued payroll and related taxes</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(310,355</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>(213,700</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Increase/(Decrease) in accrued expense</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>490,053</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>(30,823</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:32.733px">Decrease in accrued tax liability</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(16,608</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96.6><P style="margin:0px" align=right>(60,852</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><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=10.533><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=96.133><P style="margin:0px" align=right>(502,014</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=10.533><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=96.6><P style="margin:0px" align=right>1,352,899</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">CASH FLOWS FROM INVESTING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Payments for capital expenditures</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(158,193</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>(188,006</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Purchase of certificate of deposit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>(1,500,000</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Payments for patents</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(188,274</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>(137,858</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Proceeds on disposal of fixed asset</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>217,821</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>6,000</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Proceeds from certificates of deposit </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>1,517,927</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96.6><P style="margin:0px" align=right>92,266</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><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=10.533><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=96.133><P style="margin:0px" align=right>1,389,281</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><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=10.533><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=96.6><P style="margin:0px" align=right>(1,727,598</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">CASH FLOWS FROM FINANCING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Stock issuances</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>508,900</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px" align=right>51,250</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Payment for cancelled shares</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>(2,820</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>(1,755</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Finance lease</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px" align=right>(3,122</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96.6><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">NET CASH PROVIDED BY FINANCING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1.333px solid #000000; border-bottom:1.333px solid #000000" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1.333px solid #000000; border-bottom:1.333px solid #000000" valign=bottom width=96.133><P style="margin:0px" align=right>502,958</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><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=10.533><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=96.6><P style="margin:0px" align=right>49,495</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px" align=right>1,390,225</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px" align=right>(325,204</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96.133><P style="margin:0px" align=right>3,738,803</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96.6><P style="margin:0px" align=right>3,974,536</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">CASH AND CASH EQUIVALENTS, END OF PERIOD</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><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=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.133><P style="margin:0px" align=right>5,129,028</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.6><P style="margin:0px" align=right>3,649,332</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">Supplemental Information</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">Cash paid during the periods for:</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Interest</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><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=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.133><P style="margin:0px" align=right>280</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.6><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Taxes</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.133><P style="margin:0px" align=right>103,465</P>
</TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.6><P style="margin:0px" align=right>378,000</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=471><P style="margin:0px">NON-CASH FINANCING AND INVESTING ACTIVITIES</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.667><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=10.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96.6><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=471><P style="margin:0px; margin-left:16.467px">Issuance of common stock as compensation</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.667><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=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.133><P style="margin:0px" align=right>256,525</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=15.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=10.533><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.6><P style="margin:0px" align=right>103,333</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.933><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:11pt" align=center>The accompanying notes are an integral part of these financial statements</P>
<P style="margin:0px" align=center><BR></P>

<P style="margin:0px; font-size:11pt" align=center>- 6 -</P>

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

<P style="margin:0px; font-size:11pt" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>RECONCILIATION OF NON-GAAP MEASURES</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=284.933 ></TD><TD width=11.933 ></TD><TD width=11.8 ></TD><TD width=76.533 ></TD><TD width=19.6 ></TD><TD width=11.067 ></TD><TD width=76.533 ></TD><TD width=19.6 ></TD><TD width=11.4 ></TD><TD width=76.4 ></TD><TD width=19.733 ></TD><TD width=11.8 ></TD><TD width=77.133 ></TD><TD width=11.067 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=195.533 colspan=5><P style="margin:0px; font-size:11pt" align=center><B>Three Months Ended</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.6><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=207.533 colspan=6><P style="margin:0px; font-size:11pt" align=center><B>Nine Months Ended</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt"><B>Reconciliation of GAAP Net Income</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=195.533 colspan=5><P style="margin:0px; font-size:11pt" align=center><B>September 30,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.6><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=207.533 colspan=6><P style="margin:0px; font-size:11pt" align=center><B>September 30,</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt"><B>to Non-GAAP Adjusted EBITDA:</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=88.333 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.6><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=87.6 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2018</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.6><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=87.8 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.733><P style="margin:0px; font-size:11pt">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=100 colspan=3><P style="margin:0px; font-size:11pt" align=center><B>2018</B></P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">GAAP Net Income</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>651,813</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>386,553</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.4><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>644,606</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>1,265,703</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Tax Expense</P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" width=76.533><P style="margin:0px; font-size:11pt" align=right>186,681</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" width=76.533><P style="margin:0px; font-size:11pt" align=right>103,263</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=11.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>189,265</P>
</TD><TD style="margin-top:0px" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>337,956</P>
</TD><TD style="margin-top:0px" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Depreciation/Amortization</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>82,774</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>78,345</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>252,594</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>228,900</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Interest Income, Net</P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" width=76.533><P style="margin:0px; font-size:11pt" align=right>(23,368</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" width=76.533><P style="margin:0px; font-size:11pt" align=right>(6,972</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px" valign=top width=11.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>(59,091</P>
</TD><TD style="margin-top:0px" valign=top width=19.733><P style="margin:0px; font-size:11pt">)</P>
</TD><TD style="margin-top:0px" valign=top width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>(13,088</P>
</TD><TD style="margin-top:0px" valign=top width=11.067><P style="margin:0px; font-size:11pt">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Reorganization Charges</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>232,471</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>354,926</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>383,668</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Litigation</P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" width=76.533><P style="margin:0px; font-size:11pt" align=right>864,009</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" width=76.533><P style="margin:0px; font-size:11pt" align=right>286,487</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=11.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>2,481,471</P>
</TD><TD style="margin-top:0px" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>592,787</P>
</TD><TD style="margin-top:0px" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Stock Option Expense</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6" width=76.533><P style="margin:0px; font-size:11pt" align=right>324,135</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=bottom width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" width=76.533><P style="margin:0px; font-size:11pt" align=right>24,922</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=top width=11.4><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>640,775</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=top width=11.8><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1px solid #000000" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>51,592</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=284.933><P style="margin:0px; font-size:11pt">Non-GAAP Adjusted EBITDA</P>
</TD><TD style="margin-top:0px" valign=bottom width=11.933><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=11.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000" width=76.533><P style="margin:0px; font-size:11pt" align=right>2,086,044</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=11.067><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" width=76.533><P style="margin:0px; font-size:11pt" align=right>1,105,069</P>
</TD><TD style="margin-top:0px" width=19.6><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=11.4><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=76.4><P style="margin:0px; font-size:11pt" align=right>4,504,546</P>
</TD><TD style="margin-top:0px" valign=top width=19.733><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=11.8><P style="margin:0px; font-size:11pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=77.133><P style="margin:0px; font-size:11pt" align=right>2,847,518</P>
</TD><TD style="margin-top:0px" valign=top width=11.067><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="margin:0px; font-size:11pt" align=center>- 7 -</P>

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