<SEC-DOCUMENT>0001161697-20-000185.txt : 20200505
<SEC-HEADER>0001161697-20-000185.hdr.sgml : 20200505
<ACCEPTANCE-DATETIME>20200505083011
ACCESSION NUMBER:		0001161697-20-000185
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200504
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200505
DATE AS OF CHANGE:		20200505

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:		20847026

	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 05-04-2020
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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>May 4, 2020</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>

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

<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 May 4, 2020, Repro Med Systems, Inc. dba KORU Medical Systems
(&ldquo;KORU&rdquo;) issued a press release announcing its operating and financial results for the first quarter ended March 31,
2020 and a related conference will be held on May 5, 2020 at 9:00 am Eastern Time.</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&nbsp;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&nbsp;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 May 4, 2020</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>May 5, 2020</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 MAY 4, 2020
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<P style="margin:0px" align=center><B>Exhibit 99.1</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>KORU MEDICAL SYSTEMS ANNOUNCES 2020 FIRST QUARTER FINANCIAL RESULTS &nbsp;&nbsp;</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B><U>Q1 2020 Summary</U></B></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=24 ></TD><TD width=696 ></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=24><P style="margin:0px">&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=696><P style="margin:0px">Net sales rose 27% to $6.3 million </P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=24><P style="margin:0px">&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=696><P style="margin:0px">Gross margin of 60% (62% excluding inventory obsolescence charge)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=24><P style="margin:0px">&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=696><P style="margin:0px">Net income improved to $0.4 million, or $0.01 per share</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=24><P style="margin:0px">&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=696><P style="margin:0px">Adjusted EBITDA increased 38% to $1.3 million</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=24><P style="margin:0px">&bull;</P>
</TD><TD style="margin-top:0px" valign=top width=696><P style="margin:0px">COVID-19 Update</P>
</TD></TR>
</TABLE>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><B>CHESTER, NY <font style='font-family:Arial Unicode MS,Times New Roman'>&ndash;</font> May 4, 2020 <font style='font-family:Arial Unicode MS,Times New Roman'>&ndash;</font> Repro Med Systems, Inc. dba KORU Medical Systems (NASDAQ: KRMD) (<font style='font-family:Arial Unicode MS,Times New Roman'>&ldquo;</font>KORU Medical<font style='font-family:Arial Unicode MS,Times New Roman'>&rdquo;</font> or the <font style='font-family:Arial Unicode MS,Times New Roman'>&ldquo;</font>Company<font style='font-family:Arial Unicode MS,Times New Roman'>&rdquo;</font>)</B> today announced financial results for the first quarter ended March 31, 2020 (&ldquo;Q1 2020&rdquo;).</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FEFEFE">&ldquo;We reported a strong Q1 2020 with net sales, net income, and Adjusted EBITDA rising from Q1 2019,&rdquo; said Don Pettigrew, President and CEO. &nbsp;&ldquo;We are an essential business under current New York state guidelines, and </FONT>experienced minimal operational disruptions from the impact of COVID-19 in the quarter. &nbsp;I am very proud of how our team has responded to the COVID-19 crisis with their commitment, resiliency, and continuing support of our patients and healthcare partners. &nbsp;Our products allow high-risk patients with immune diseases and other chronic conditions to receive treatment at-home and keep them out of institutional settings &ndash; important advantages during these challenging times.&rdquo;</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><B><U>Q1 2020 Overview</U></B> </P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">The Company continued in Q1 2020 to capitalize on the growth of its primary end markets of Primary Immune Deficiency Diseases (&ldquo;PIDD&rdquo;) and Chronic Inflammatory Demyelinating Polyneuropathy (&ldquo;CIDP&rdquo;) while pursuing longer-term growth initiatives, including broadening pharmaceutical relationships with an emphasis on the numerous new subcutaneous drugs coming to market, expanding indications beyond its primary disease states, and pursuing customers in new geographies.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">Net sales rose 27% to $6.3 million in Q1 2020 from $5.0 million in Q1 2019, with growth in all product categories (pumps, needle sets, and tubing). &nbsp;We believe this growth was primarily driven by an increased utilization of our products by PIDD patients and ongoing expansion of Hizentra&reg; into CIDP. &nbsp;Net sales for Q1 2020 also reflected higher clinical trial sales compared to Q1 2019.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">Gross profit in Q1 2020 rose 24% to $3.8 million from $3.1 million in Q1 2019, primarily due to increased sales volume. Gross margin of 60% declined from 61% in Q1 2019, reflecting a non-cash $0.1 million obsolescence reserve related to a discontinued legacy product and an increase in overtime, partially offset by price increases; excluding the charge, gross margin in Q1 2020 &nbsp;&nbsp;was 62%.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">Total operating expenses for Q1 2020 were stable at $3.2 million when compared to Q1 2019. Selling, general &amp; administrative expenses were $2.8 million, or 44% of net sales, compared to $2.5 million, or 50% of net sales in Q1 2019. Litigation costs declined to $0.1 million from $0.5 million in Q1 2019, reflecting a decreased level of activity with respect to ongoing legal activity with our competitor. Research and development expenses increased to $0.3 million from $0.1 million in Q1 2019, mostly due to increased salary and related benefits due to higher headcount as we continue our commitment to development initiatives.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">Net income for Q1 2020 was $0.4 million, or $0.01 per share, as compared to a net loss of $0.1 million, or $0.00 per diluted share, in the prior year period.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">Q1 2020 Adjusted EBITDA rose 38% to $1.3 million from Adjusted EBITDA of $0.9 million in Q1 2019. Adjusted EBITDA excludes from net income: tax expense, depreciation and amortization, interest income, net, operating expenses associated with the Company&rsquo;s organizational changes prior to March 31, 2019, discontinued product expense, litigation costs, manufacturing initiative expenses, and stock option expense.</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"><B><U>COVID-19 Update</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">The COVID-19 pandemic has spread to the countries in which the Company, its customers and suppliers conduct business.&nbsp; The Company currently qualifies as an &ldquo;essential business&rdquo; under New York state guidelines and its operations remain active. We serve patients that are managing chronic medical conditions and remain committed to doing all we can so that these vulnerable individuals have access to our Freedom Integrated Infusion System, which allows them to utilize home-based drug therapy. </P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">The Company has responded to this crisis by developing and deploying a multi-faceted set of operational and financial initiatives designed to minimize disruptions to its normal business activities and preserve its ability to execute its long-term growth objectives.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">To protect the safety, health and well-being of employees, customers, suppliers and communities, we are following federal, state, and local guidelines to ensure safety in all facilities, including: increased frequency of cleaning and disinfecting, social distancing practices, requiring most&nbsp;non-production related team members to work remotely where possible, business travel restrictions, cancellation of certain events, and limitations on visitor access to facilities.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">The Company is currently continuing to manufacture and ship products on schedule and is managing its inventory and supply chain to minimize disruptions. &nbsp;That said, there can be no assurance that this will continue in the face of COVID-19 uncertainty. </P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">&ldquo;We are confident that KORU Medical will successfully navigate the challenges of COVID-19 and remain focused on achieving our long-term growth objectives,&rdquo; continued Mr. Pettigrew. &ldquo;We have not experienced any material disruption to our business thus far, continue to execute on our Strategic Plan, and are prudently managing <FONT style="background-color:#FEFEFE">working capital and cash flow. &nbsp;Longer term, </FONT>we believe that the COVID-19 experience may accelerate the shift of drug infusion therapy to an at-home model and further advance the adoption of subcutaneous immunoglobulin drugs.&rdquo;</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FFFFFF"><B><U>Balance Sheet, Liquidity Initiatives and Credit</U></B></FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FFFFFF">Cash and equivalents as of March 31, 2020 totaled $7.4 million, a $1.6 million increase from December 31, 2019. Substantially all of the increase was due to a March 2020 draw down of $1.5 million on the Company&rsquo;s line of credit, the full amount available at that time. </FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FFFFFF">On April 14, 2020, the Company signed a new $3.5 million revolving line of credit with its lender that extended the above-referenced $1.5 million line of credit, and subsequently drew down on the full amount available out of concern about the potential impact of COVID-19. </FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FFFFFF">On April 20, 2020, the Company entered into an agreement with its lender pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act, providing for a loan in the principal amount of approximately $1.5 million. &nbsp;The loan was funded on April 27, 2020.</FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FFFFFF">On April 27, 2020, the Company entered into an agreement with a division of its lender, to provide up to $2.5 million in financing for equipment purchases from third party vendors.</FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FFFFFF">Additional information regarding these agreements is available in the Company&rsquo;s public filings.</FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><FONT style="background-color:#FEFEFE">To date, the Company has not experienced any significant slowdown in customer payments, and the Company believes that cash on hand and cash expected to be generated from future operating activities will be sufficient to fund its operations for the foreseeable future. </FONT>That said, there can be no assurance that this will continue in the face of COVID-19 uncertainty.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><B><U>Non-GAAP Measures</U></B> </P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">This press release includes the non-GAAP financial measure of &ldquo;Adjusted EBITDA&rdquo; that is 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, this non-GAAP measure is 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 measure is meant to supplement, and to be viewed in conjunction with, GAAP financial results. A reconciliation of our non-GAAP measure is included in an attachment to this press release.</P>
<P style="margin:0px; text-align: justify"><BR></P>

<P style="margin:0px" 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; text-align: justify"><B><U>Conference Call</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; 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">&bull;<FONT style="font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(877) 407-9753 (</FONT><FONT style="font-family:Times New Roman"><I>Domestic</I></FONT><FONT style="font-family:Times New Roman">) or </FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">&bull;<FONT style="font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(201) 493-6739 (</FONT><FONT style="font-family:Times New Roman"><I>International</I></FONT><FONT style="font-family:Times New Roman">)</FONT></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><B>Webcast registration: </B>Click Here</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">Following the live call, a replay will be available for six months on the Company&rsquo;s website, www.korumedical.com<FONT style="color:#00FFFF"><U> </U></FONT>under &ldquo;Investor Relations.&rdquo;</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><B>About KORU Medical Systems</B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">KORU Medical Systems develops, manufactures, and commercializes innovative and easy-to-use specialty infusion solutions that improve quality of life for patients around the world. 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. For more information, please visit www.korumedical.com.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify"><B><U>Forward-looking Statements</U></B></P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px; text-align: justify">This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements can be identified by words such as &ldquo;will&rdquo; and &ldquo;believe.&rdquo; &nbsp;Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions &ldquo;Risk Factors&rdquo; in our Annual Report on Form 10-K for the year ended December 31, 2019, as amended, and our most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, which are on file with the SEC and are available on our website at www.korumedical.com/investors and on the SEC website at www.sec.gov. In addition, there are risks and uncertainties with respect to the impact of COVID-19 on our supply chain, operations and financial condition. &nbsp;All information provided in this release and in the attachments is as of May 4, 2020. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.</P>
<P style="margin:0px; text-align: justify"><BR></P>
<P style="margin:0px"><B>Contacts:</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><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=192 ></TD><TD width=192 ></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">Devin Sullivan</P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">Kalle Ahl, CFA</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">Senior Vice President</P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">Vice President</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">212-836-9608</P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">212-836-9614</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">dsullivan@equityny.com </P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px">kahl@equityny.com </P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="margin:0px" 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" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px" align=center><B>BALANCE SHEETS</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=469.933 ></TD><TD width=10 ></TD><TD width=10 ></TD><TD width=96.2 ></TD><TD width=18.067 ></TD><TD width=9.6 ></TD><TD width=96.2 ></TD><TD width=10 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=106.2 colspan=2><P style="margin:0px" align=center><B>March 31,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=105.8 colspan=2><P style="margin:0px" align=center><B>&nbsp;</B></P>
</TD><TD style="margin-top:0px" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=106.2 colspan=2><P style="margin:0px" align=center><B>2020</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=105.8 colspan=2><P style="margin:0px" align=center><B>December 31,</B></P>
</TD><TD style="margin-top:0px" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=top width=106.2 colspan=2><P style="margin:0px" align=center><B>(Unaudited)</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=top width=105.8 colspan=2><P style="margin:0px" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px" align=center><B>ASSETS</B></P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">CURRENT ASSETS</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Cash and cash equivalents</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>7,427,679</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>5,870,929</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Accounts receivable less allowance for doubtful accounts of $32,645 at March 31, 2020 and December 31, 2019</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>3,419,681</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>3,234,521</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Inventory &nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>3,089,016</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>2,388,477</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Prepaid expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>543,454</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>387,396</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">TOTAL CURRENT ASSETS </P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>14,479,830</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>11,881,323</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">Property and equipment, net</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>638,670</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>611,846</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:6.533px; text-indent:-6.533px">Patents, net of accumulated amortization of $303,425 and $288,967 at March 31, 2020 and December 31, 2019, respectively</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>873,225</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>807,135</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">Right of use assets, net</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>340,118</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>373,734</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">Deferred tax asset</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>251,444</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>188,241</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">Other assets</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>19,812</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>19,582</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">TOTAL ASSETS</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=10><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=96.2><P style="margin:0px" align=right>16,603,099</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=96.2><P style="margin:0px" align=right>13,881,861</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px" align=center><B>LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">CURRENT LIABILITIES</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Line of credit payable </P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>1,500,000</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Accounts payable</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>1,097,054</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>572,656</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Accrued expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>888,318</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>1,296,612</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Accrued payroll and related taxes</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>229,836</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>190,265</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Accrued tax liability </P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>409,703</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>204,572</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Finance lease liability - current</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>4,252</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>5,296</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Operating lease liability - current</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>138,520</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>136,888</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">TOTAL CURRENT LIABILITIES</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-top:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-top:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>4,267,683</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-top:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-top:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>2,406,289</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">Finance lease liability, net of current portion</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>1,842</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>2,646</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">Operating lease liability, net of current portion</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>201,598</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>236,846</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">TOTAL LIABILITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>4,471,123</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>2,645,781</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">STOCKHOLDERS&rsquo; EQUITY</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Common stock, $0.01 par value; 75,000,000 shares authorized, 42,423,977 and 42,239,788 shares issued, 39,686,746 and 39,502,557 shares outstanding at March 31, 2020 and December 31, 2019, respectively</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>424,240</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=96.2><P style="margin:0px" align=right>422,398</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Additional paid-in capital</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>6,737,695</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>6,293,069</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Retained earnings</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>5,314,245</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>4,864,817</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>12,476,180</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.2><P style="margin:0px" align=right>11,580,284</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px; margin-left:6.533px; text-indent:-6.533px">Less: Treasury stock, 2,737,231 shares at March 31, 2020 and December 31, 2019, respectively, at cost</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>(344,204</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>(344,204</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=469.933><P style="margin:0px">TOTAL STOCKHOLDERS&rsquo; EQUITY</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>12,131,976</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.2><P style="margin:0px" align=right>11,236,080</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=469.933><P style="margin:0px">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=10><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=96.2><P style="margin:0px" align=right>16,603,099</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=18.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:3px double #000000" valign=bottom width=96.2><P style="margin:0px" align=right>13,881,861</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=10><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="margin:0px" 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" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px" align=center><B>STATEMENTS OF OPERATIONS</B></P>
<P style="margin:0px" align=center><B>(UNAUDITED)</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=466.533 ></TD><TD width=9.6 ></TD><TD width=9.6 ></TD><TD width=95.533 ></TD><TD width=24 ></TD><TD width=9.6 ></TD><TD width=95.533 ></TD><TD width=9.6 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=234.267 colspan=5><P style="margin:0px" align=center><B>For the<BR>
Three Months Ended</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=234.267 colspan=5><P style="margin:0px" align=center><B>March 31,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=105.133 colspan=2><P style="margin:0px" align=center><B>2020</B></P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=105.133 colspan=2><P style="margin:0px" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">NET SALES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>6,330,009</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>4,974,278</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Cost of goods sold</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>2,541,799</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>1,926,324</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">Gross Profit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>3,788,210</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>3,047,954</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">OPERATING EXPENSES</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Selling, general and administrative</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>2,762,980</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>2,484,868</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Litigation</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px" align=right>99,158</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px" align=right>492,515</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Research and development</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>256,025</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>101,959</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Depreciation and amortization</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>87,224</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>83,651</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">Total Operating Expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>3,205,387</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>3,162,993</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">Net Operating Profit/(Loss)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>582,823</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>(115,039</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">Non-Operating Income</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Loss on currency exchange </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px" align=right>(10,497</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px" align=right>(9,690</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Loss on sale of fixed asset</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>(240</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Interest income, net</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>19,030</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>17,480</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">TOTAL OTHER INCOME</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>8,533</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>7,550</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">INCOME/(LOSS) BEFORE TAXES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>591,356</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px" align=right>(107,489</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Income Tax (Expense)/Benefit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>(141,928</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=95.533><P style="margin:0px" align=right>22,099</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">NET INCOME/(LOSS)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>449,428</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>(85,390</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">NET INCOME/(LOSS) PER SHARE</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Basic</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>0.01</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>0.00</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Diluted</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>0.01</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>0.00</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">WEIGHTED AVERAGE COMMON SHARES OUTSTANDING</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:7.933px; text-indent:-7.933px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=95.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Basic</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>39,675,107</P>
</TD><TD style="margin-top:0px" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>38,203,606</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=466.533><P style="margin:0px; margin-left:13.067px">Diluted</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>39,874,989</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=24><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=95.533><P style="margin:0px" align=right>39,033,623</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="margin:0px" 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" align=center><B>REPRO MED SYSTEMS, INC.</B></P>
<P style="margin:0px" align=center><B>STATEMENTS OF CASH FLOWS</B></P>
<P style="margin:0px" align=center><B>(UNAUDITED)</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=465.533 ></TD><TD width=9.6 ></TD><TD width=9.733 ></TD><TD width=96.4 ></TD><TD width=23 ></TD><TD width=9.6 ></TD><TD width=96.533 ></TD><TD width=9.6 ></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=465.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=235.267 colspan=5><P style="margin:0px" align=center><B>For the<BR>
Three Months Ended</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=top width=235.267 colspan=5><P style="margin:0px" align=center><B>March 31,</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=top width=106.133 colspan=2><P style="margin:0px" align=center><B>2020</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF; border-bottom:1.333px solid #000000" valign=top width=106.133 colspan=2><P style="margin:0px" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">CASH FLOWS FROM OPERATING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Net Income/(Loss)</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>449,428</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(85,390</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:19.6px; text-indent:-6.533px">Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Stock based compensation expense </P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>360,968</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>298,125</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Depreciation and amortization</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>87,224</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>83,651</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Deferred capital gain - building lease</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(3,763</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Deferred taxes</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>(63,203</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>25,594</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Loss on disposal of fixed asset</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>240</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Changes in operating assets and liabilities:</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Increase in accounts receivable</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>(185,160</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(1,229,419</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px; text-align: justify">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Increase in inventory</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>(700,539</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>(404,805</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Increase in prepaid expense and other assets</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>(156,288</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(40,024</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Increase in accounts payable</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>524,398</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>489,593</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Increase/(Decrease) in accrued payroll and related taxes</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>39,571</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(173,665</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">(Decrease)/Increase in accrued expense</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>(408,294</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>11,238</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:26.133px">Increase/(Decrease) in accrued tax liability</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>205,131</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>(16,608</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>153,236</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>(1,045,233</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">CASH FLOWS FROM INVESTING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Payments for capital expenditures</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>(99,591</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(41,626</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Purchase certificate of deposit</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>(6,489</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Payments for patents</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>(80,547</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>(48,718</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">NET CASH USED IN INVESTING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>(180,138</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>(96,833</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">CASH FLOWS FROM FINANCING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Line of credit advance</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>1,500,000</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Share issuances</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px" align=right>85,500</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Payment for cancelled shares</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(2,820</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Finance lease </P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>(1,848</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>(1,028</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>1,583,652</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>(3,848</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px" align=right>1,556,750</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px" align=right>(1,145,914</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.4><P style="margin:0px" align=right>5,870,929</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:1.333px solid #000000" valign=bottom width=96.533><P style="margin:0px" align=right>3,738,803</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">CASH AND CASH EQUIVALENTS, END OF PERIOD</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.733><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.4><P style="margin:0px" align=right>7,427,679</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.533><P style="margin:0px" align=right>2,592,889</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">Supplemental Information</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">Cash paid during the periods for:</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Interest</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.733><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.4><P style="margin:0px" align=right>87</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.533><P style="margin:0px" align=right>174</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Taxes</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.733><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.4><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6; border-bottom:3px double #000000" valign=bottom width=96.533><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=465.533><P style="margin:0px">NON-CASH FINANCING AND INVESTING ACTIVITIES</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.733><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.4><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=96.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=465.533><P style="margin:0px; margin-left:13.067px">Issuance of common stock as compensation</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.733><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.4><P style="margin:0px" align=right>60,002</P>
</TD><TD style="margin-top:0px" valign=bottom width=23><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=9.6><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=bottom width=96.533><P style="margin:0px" align=right>176,250</P>
</TD><TD style="margin-top:0px" valign=bottom width=9.6><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="margin:0px" align=center>- 6 -</P>

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

<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:1pt"><TD width=269.133 ></TD><TD width=14.067 ></TD><TD width=12.067 ></TD><TD width=69.267 ></TD><TD width=22.067 ></TD><TD width=14.067 ></TD><TD width=66.267 ></TD><TD width=13.067 ></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=183.733 colspan=5><P style="margin:0px" align=center><B>Three Months Ended</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px"><B>Reconciliation of GAAP Net Income/(Loss)</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=183.733 colspan=5><P style="margin:0px" align=center><B>March 31,</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px"><B>to Non-GAAP Adjusted EBITDA:</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=81.333 colspan=2><P style="margin:0px" align=center><B>2020</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1.333px solid #000000" valign=bottom width=80.333 colspan=2><P style="margin:0px" align=center><B>2019</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6; border-top:1.333px solid #000000" valign=bottom width=269.133><P style="margin:0px">GAAP Net Income/(Loss)</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=12.067><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=69.267><P style="margin:0px" align=right>449,428</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=66.267><P style="margin:0px" align=right>(85,390</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=13.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Tax Expense/(Benefit)</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=69.267><P style="margin:0px" align=right>141,928</P>
</TD><TD style="margin-top:0px" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=66.267><P style="margin:0px" align=right>(22,099</P>
</TD><TD style="margin-top:0px" width=13.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Depreciation/Amortization</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=69.267><P style="margin:0px" align=right>87,224</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=66.267><P style="margin:0px" align=right>83,651</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Interest Income, Net</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=69.267><P style="margin:0px" align=right>(19,030</P>
</TD><TD style="margin-top:0px" width=22.067><P style="margin:0px">)</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=66.267><P style="margin:0px" align=right>(17,480</P>
</TD><TD style="margin-top:0px" width=13.067><P style="margin:0px">)</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Reorganization Charges</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=69.267><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=66.267><P style="margin:0px" align=right>354,926</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Discontinued Product Expense</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=69.267><P style="margin:0px" align=right>109,558</P>
</TD><TD style="margin-top:0px" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=66.267><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Litigation Expenses</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=69.267><P style="margin:0px" align=right>99,158</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=66.267><P style="margin:0px" align=right>492,515</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Manufacturing Initiative Expenses</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=69.267><P style="margin:0px" align=right>109,803</P>
</TD><TD style="margin-top:0px" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" width=66.267><P style="margin:0px" align=right>&mdash;</P>
</TD><TD style="margin-top:0px" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=269.133><P style="margin:0px; margin-left:17.133px">Stock Compensation Expense</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=12.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=69.267><P style="margin:0px" align=right>300,966</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=66.267><P style="margin:0px" align=right>121,875</P>
</TD><TD style="margin-top:0px; background-color:#E6E6E6" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=269.133><P style="margin:0px">Non-GAAP Adjusted EBITDA</P>
</TD><TD style="margin-top:0px" valign=bottom width=14.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000; border-bottom:3px double #000000" valign=bottom width=12.067><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000; border-bottom:3px double #000000" width=69.267><P style="margin:0px" align=right>1,279,035</P>
</TD><TD style="margin-top:0px" width=22.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000; border-bottom:3px double #000000" valign=bottom width=14.067><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px; border-top:1.333px solid #000000; border-bottom:3px double #000000" width=66.267><P style="margin:0px" align=right>927,998</P>
</TD><TD style="margin-top:0px" width=13.067><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="margin:0px" align=center>- 7 -</P>

<HR noshade align="center" width="100%" size="2">
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