<SEC-DOCUMENT>0001513162-13-000674.txt : 20130916
<SEC-HEADER>0001513162-13-000674.hdr.sgml : 20130916
<ACCEPTANCE-DATETIME>20130916165744
ACCESSION NUMBER:		0001513162-13-000674
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20130731
FILED AS OF DATE:		20130916
DATE AS OF CHANGE:		20130916

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COPYTELE INC
		CENTRAL INDEX KEY:			0000715446
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER PERIPHERAL EQUIPMENT, NEC [3577]
		IRS NUMBER:				112622630
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11254
		FILM NUMBER:		131099351

	BUSINESS ADDRESS:	
		STREET 1:		900 WALT WHITMAN RD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		5165495900

	MAIL ADDRESS:	
		STREET 1:		900 WALT WHITMAN ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>form10q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML>
<head><title>copytele_q3_2013.htm</title> </head> <body bgcolor=#ffffff>&nbsp; <a name=page_1> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader1> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:14pt face="Times New Roman" lang=EN-US>UNITED STATES</font></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:14pt face="Times New Roman" lang=EN-US>SECURITIES AND EXCHANGE COMMISSION</font></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:14pt face="Times New Roman" lang=EN-US>Washington, D.C.&nbsp; 20549</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:14pt face="Times New Roman" lang=EN-US>FORM 10-Q</font></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>OF THE SECURITIES EXCHANGE ACT OF 1934</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>For the quarterly period ended July 31, 2013</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Commission file number 0-11254</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <div style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:1pt; PADDING-TOP:0in; PADDING-LEFT:0in; BORDER-LEFT:0px; PADDING-RIGHT:0in"> <p style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; TEXT-ALIGN:center; PADDING-TOP:0in; PADDING-LEFT:0in; MARGIN:0in 0in 0pt; BORDER-LEFT:0px; PADDING-RIGHT:0in" align=center><b><font style=FONT-SIZE:19pt face="Times New Roman" lang=EN-US>COPYTELE, INC.</font></b></p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:9pt face="Times New Roman" lang=EN-US>(Exact name of registrant as specified in its charter)</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style=FONT-SIZE:10pt>Delaware&nbsp;&nbsp;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font style=FONT-SIZE:10pt>11-2622630</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:9pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp; (State or other jurisdiction of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (I.R.S. Employer</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:9pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incorporation or organization)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identification No.)</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font style=FONT-SIZE:10pt>900 Walt Whitman Road</font></font></p> <div style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:1pt; PADDING-TOP:0in; PADDING-LEFT:0in; BORDER-LEFT:0px; PADDING-RIGHT:0in"> <p style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; TEXT-ALIGN:center; PADDING-TOP:0in; PADDING-LEFT:0in; MARGIN:0in 0in 0pt; BORDER-LEFT:0px; PADDING-RIGHT:0in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style=FONT-SIZE:10pt>Melville, NY&nbsp;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font style=FONT-SIZE:10pt>11747</font></font></p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:9pt face="Times New Roman" lang=EN-US>(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <div style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:1pt; PADDING-TOP:0in; PADDING-LEFT:0in; BORDER-LEFT:0px; PADDING-RIGHT:0in"> <p style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; TEXT-ALIGN:center; PADDING-TOP:0in; PADDING-LEFT:0in; MARGIN:0in 0in 0pt; BORDER-LEFT:0px; PADDING-RIGHT:0in" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(631) 549-5900</font></p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:9pt face="Times New Roman" lang=EN-US>(Registrant's telephone number, including area code)</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;X&nbsp; &nbsp;</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No ___</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;X&nbsp; &nbsp;</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No ___</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 5.4pt 0pt 0in; TEXT-INDENT:0.25in"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Large accelerated filer [&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accelerated filer [&nbsp;&nbsp; ]</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 19.35pt 0pt 0in; TEXT-INDENT:0.25in"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Non-accelerated filer [&nbsp;&nbsp; ] (Do not check if a smaller reporting company)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Smaller reporting company [X]</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Yes ____&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;X &nbsp;</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>On September 10, 2013, the registrant had outstanding 207,586,189 shares of Common Stock, par value $.01 per share, which is the registrant&#146;s only class of common stock.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p><a name=_aciFooter1> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_2> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader2> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> <div align=center> <table bordercolor=transparent style="BORDER-COLLAPSE:collapse; WIDTH:75%" cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><u><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a name=TableofContents>TABLE OF CONTENTS</font></u></b></p></a></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Part1>PART I</a>.</font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Part1>FINANCIAL INFORMATION</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item1>Item 1</a>.</font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item1>Financial Statements.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#CBS>Condensed Consolidated Balance Sheets as of July 31, 2013 (Unaudited) and October 31, 2012</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>3</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#Comloss>Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) for the nine months ended July 31, 2013 and 2012&nbsp;</a>&nbsp;</font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>4</font></p></td></tr> <tr style=HEIGHT:16.7pt> <td width=7% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#Comloss3>Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) for the three months ended July 31, 2013 and 2012&nbsp;</a>&nbsp;&nbsp;</font></p></td> <td width=3% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>5</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#shareholders>Condensed Consolidated Statement of Shareholders&#146; Deficiency (Unaudited) for the nine months ended July 31, 2013&nbsp;</a>&nbsp;</font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>6</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#CF>Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended July 31, 2013 and 2012</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>7</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#Notes>Notes to Condensed Consolidated Financial Statements (Unaudited)</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>8 &#150; 33</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item2>Item 2.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item2>Management's Discussion and Analysis of Financial Condition and Results of Operations.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>34 - 49</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item3>Item 3.</a>&nbsp;</font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item3>Quantitative and Qualitative Disclosures About Market Risk.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>49</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item4>Item 4.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Item4>Controls and Procedures.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>49</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#PARTII>PART II.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#PARTII>OTHER INFORMATION</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Legal>Item 1.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Legal>Legal Proceedings.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>50</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Risk>Item 1A.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Risk>Risk Factors.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>51</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Saleofequity>Item 2.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#Saleofequity>Unregistered Sales of Equity Securities and Use of Proceeds.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>&nbsp;51</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM3>Item 3.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000><a href=#ITEM3>Defaults Upon Senior Securities.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>52</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM4>Item 4.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM4>Mine Safety Disclosures.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>52</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM5>Item 5</a>.</font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM5>Other Information</a>.</font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>52</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM6>Item 6.</a> </font></p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#ITEM6>Exhibits.</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>52</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black><a href=#Sign>SIGNATURES</a> </font></p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=5% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=black>53</font></p></td></tr></table></div> <p style="MARGIN:0in 0in 10pt">&nbsp;</p><a name=_aciFooter2> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman" lang=EN-US>2</font></font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_3> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader3> <div> <p style="MARGIN:0in 0in 0pt"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=Part1>PART I.&nbsp; FINANCIAL INFORMATION</font></u></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=Item1>Item 1.&nbsp; </font></b><b><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>Financial Statements. </font></u></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>COPYTELE, INC. AND SUBSIDIARIES</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=CBS>CONDENSED CONSOLIDATED BALANCE SHEETS </font></u></p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:75% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt"></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>(Unaudited)</font></font></font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>July 31,</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2013</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>October 31,</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2012</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>ASSETS</font></u></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Current assets:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash and cash equivalents</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>982,031 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>339,693 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Short-term investment in certificates of deposit</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>- </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>500,000 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Prepaid expenses and other current assets </font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>47,262 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>82,326 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total current assets</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,029,293 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>922,019 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Investment in Videocon Industries Limited global depository receipts, at market value</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,269,141 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,728,367 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Property and equipment, net of accumulated depreciation of $44,901 and $2,185,525 respectively</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>9,132 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>10,290 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total assets</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,307,566 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,660,676 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>LIABILITIES AND SHAREHOLDERS' DEFICIENCY</font></u></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Current liabilities:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accounts payable</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>516,044 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>304,523 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accrued liabilities </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>691,275 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>330,616 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Derivative liability, at fair value</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>700,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Deferred revenue, non-refundable license fees</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,187,320 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,187,320 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total current liabilities</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,094,639 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,822,459 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Contingencies (Note 9)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Convertible debentures due September 2016, net of discount of $-0- and $717,727, respectively</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>32,273 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Convertible debentures due January 2015, net of discount of $989,433 and $-0-, respectively</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>450,567 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:13.5pt> <td width=74% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>&nbsp;Loan payable to related party (Note 1)</font></p></td> <td width=2% valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=10% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,000,000 </font></p></td> <td width=2% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,000,000 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Shareholders&#146; deficiency:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Preferred stock, par value $100 per share; 500,000 shares authorized; no shares issued or outstanding</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:13.5pt> <td width=74% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock, par value $.01 per share; 300,000,000 shares authorized; 206,176,189 and 184,979,037 shares issued and outstanding, respectively</font></p></td> <td width=2% valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=10% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,061,762 </font></p></td> <td width=2% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,849,790 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Additional paid-in capital</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>133,050,162 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>127,693,160 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loan receivable from related party (Note 1)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(5,000,000)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(5,000,000)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accumulated deficit </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(132,236,654)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(125,083,322)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accumulated other comprehensive income (loss) </font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,112,910)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(653,684)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total shareholders&#146; deficiency</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(3,237,640)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,194,056)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total liabilities and shareholders&#146; deficiency</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>5,307,566 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>5,660,676 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr> <td width=74% style=BACKGROUND-COLOR:#ffffff><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=10% style=BACKGROUND-COLOR:#ffffff><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=10% style=BACKGROUND-COLOR:#ffffff><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td></tr></table></div></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>The accompanying notes are an integral part of these condensed consolidated financial statements</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciFooter3> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">3</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_4> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader4> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader4> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader4> <div>&nbsp;</div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>COPYTELE, INC. AND SUBSIDIARIES</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=Comloss>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS </font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>AND COMPREHENSIVE LOSS (UNAUDITED)</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:75% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=26% colspan=5 style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>For the Nine Months Ended</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=26% colspan=5 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>July 31,</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt"></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2013</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2012</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt" /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net revenue</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Revenue from sales of encryption products, net</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,130 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>$</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,725 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Display technology license fee</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>940,010 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total net revenue</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,130 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>946,735 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cost of revenue and operating expenses</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cost of encryption products sold</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>27,067 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,948 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Research and development expenses</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,712,302 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Selling, general and administrative expenses </font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,117,492 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,641,277 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total cost of revenue and operating expenses</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,144,559 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,355,527 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss from operations </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(6,142,429)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,408,792)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Change in fair value of derivative liability</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>315,189 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss on extinguishment of debt</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(343,517)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Interest expense</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(982,688)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Dividend income</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>13,463 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Interest income</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>113 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,033 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss before income taxes</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(7,153,332)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,392,296)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Provision for income taxes</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net loss</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(7,153,332)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,392,296)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Other comprehensive loss:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:13.5pt> <td width=74% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Unrealized loss on investment in Videocon Industries Limited global depository receipts</font></p></td> <td width=2% style=BACKGROUND-COLOR:#cceeff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=10% style="BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(459,226)</font></p></td> <td width=2% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(779,334)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total comprehensive loss </font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(7,612,558)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(3,171,630)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net loss per share:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Basic and diluted</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(0.04)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(0.01)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted average common shares outstanding:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Basic and diluted</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>192,889,045 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>180,620,450 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr></table></div></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>The accompanying notes are an integral part of these condensed consolidated financial statements. </font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><a name=_aciFooter4> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">4</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_5> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader5> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>COPYTELE, INC. AND SUBSIDIARIES</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=Comloss3>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS </font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>AND COMPREHENSIVE LOSS (UNAUDITED)</font></u></p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:75% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=26% colspan=5 style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>For the Three Months Ended</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=26% colspan=5 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>July 31,</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt"></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2013</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2012</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net revenue</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Revenue from sales of encryption products, net</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>$</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,800 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Display technology license fee</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>246,670 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total net revenue</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>249,470 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right /></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cost of revenue and operating expenses</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cost of encryption products sold</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>714 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Research and development expenses</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>458,412 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Selling, general and administrative expenses </font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,218,605 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>433,682 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Total cost of revenue and operating expenses</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,218,605 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>892,808 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss from operations</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,218,605)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(643,338)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Change in fair value of derivative</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>105,189 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss on extinguishment of debt</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(343,517)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Interest expense</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(125,035)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Dividend income</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>13,463 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Interest income </font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>76 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>773 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss before income taxes</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,581,892)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(629,102)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Provision for income taxes</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net loss</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,581,892)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(629,102)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Other comprehensive loss:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Unrealized loss on investment in Videocon Industries Limited global depository receipts</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,751,636)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(261,772)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total comprehensive loss </font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(4,333,528)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(890,874)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net loss per share:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Basic and diluted</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(0.01)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:10pt; LINE-HEIGHT:normal" color=#000000><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">(</font><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">0.00) </font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted average common shares outstanding:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Basic and diluted</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>201,965,186 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>182,964,773 </font></p></td></tr></table></div></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>The accompanying notes are an integral part of these condensed consolidated financial statements.</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p><a name=_aciFooter5> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">5</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div> <p>&nbsp;</p>&nbsp; <a name=page_7> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>COPYTELE, INC. AND SUBSIDIARIES</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=shareholders>CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS&#146; DEFICIENCY</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>FOR THE NINE MONTHS ENDED JULY 31, 2013 (UNAUDITED)</font></u></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:75% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=34% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Additional</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Paid-in</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Capital</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=8% style="BORDER-BOTTOM:#000000 1px solid" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loan</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Receivable</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>From</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Related Party</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="BORDER-BOTTOM:#000000 1px solid" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accumulated</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Other</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Comprehensive</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Income (Loss)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Shareholders&#146;</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Deficiency</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=16% colspan=3 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common Stock</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accumulated</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Deficit</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Shares</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Par Value</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Balance, October 31, 2012</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>184,979,037</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$1,849,790 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$127,693,160 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($5,000,000)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($125,083,322)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($653,684)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($1,194,056)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock option compensation to employees</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,118,424</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>- </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,118,424</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock option compensation to consultants</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>574,374</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>- </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>574,374</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to consultants</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>665,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,650</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>161,825</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>168,475</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued upon exercise of stock options</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>146,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,460</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>24,150</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>25,610</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Sale of common stock to Aspire Capital Fund, LLC, net of expense</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,100,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>31,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>558,865</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>589,865</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to Aspire Capital Fund, LLC, as consideration </font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,500,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>35,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(35,000)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued upon conversion of convertible debentures </font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>10,318,945</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>103,190</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,250,174</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,353,364</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued in payment of interest on convertible debentures</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>339,714</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,397</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>66,542</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>69,939</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to acquire patent license </font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>200,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>40,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>42,000</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued upon exercise of warrants</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,927,493</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>29,275</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>351,525</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>- </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>- </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>- </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>380,800</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Warrants issued in connection with issuance of convertible debentures </font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>221,985</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>221,985</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=34% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds received on sale of common stock held by ZQX Advisors, LLC</font></p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>24,138</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-&nbsp;</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>24,138</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Unrealized loss on investment in Videocon Industries Limited global depository receipts (Note 4)</font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(459,226)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(459,226)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=34% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net loss </font></p></td> <td width=7% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(7,153,332)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(7,153,332)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=34% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Balance, July 31, 2013 </font></p></td> <td width=7% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>206,176,189</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$2,061,762 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$133,050,162 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($5,000,000)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($132,236,654)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($1,112,910)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>($3,237,640)</font></p></td></tr></table></div></div> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 6pt" align=center><font style=FONT-SIZE:12pt lang=EN-US>The accompanying notes are an integral part of these condensed consolidated financial statements.</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 6pt 0.25in" align=center>&nbsp;</p><a name=_aciFooter7> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman" lang=EN-US>6</font></font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_8> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader8> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>COPYTELE, INC. AND SUBSIDIARIES</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US><a name=CF>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:75% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=26% colspan=5 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt" align=center></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>For the nine months ended</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=26% colspan=5 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=right><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>July 31,</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=right><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2013</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=right><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2012</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash flows from operating activities:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Payments to suppliers, employees and consultants</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,645,397)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,199,910)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash received from sales of products and services</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,130 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,325 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Dividend received</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>13,463 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Interest received</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>868 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,817 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Net cash used in operating activities</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,642,399)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,178,305)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash flows from investing activities:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Disbursements to acquire short-term investments in certificates of deposit </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,200,000)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds from maturities of short-term investments in U.S. government securities and certificates of deposit </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>500,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,498,947 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds from sale of Digital Info Security Co. Inc. common stock</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,135 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Payments for purchases of property and equipment</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,811)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,600)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Net cash provided by investing activities</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>499,324 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>1,297,347 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash flows from financing activities:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds from issuance of convertible debentures</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,765,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds from sale of common stock, net of expense</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>589,865 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds from exercise of warrants to purchase common stock</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>380,800 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds from exercise of stock options</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>25,610 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>208,450 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds received on sale of common stock held by ZQX Advisors, LLC</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>24,138 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Net cash provided by financing activities</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,785,413 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>208,450 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net increase (decrease) in cash and cash equivalents </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>642,338 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(672,508)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash and cash equivalents at beginning of year</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>339,693 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>774,040 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Cash and cash equivalents at end of period</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>982,031 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>101,532 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Reconciliation of net loss to net cash used in operating activities:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Net loss</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(7,153,332)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,392,296)</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock option compensation to employees</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,118,424 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>111,105 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock option compensation to consultants</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>574,374 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to employees pursuant to stock incentive plans </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>861,364 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to consultants </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>168,475 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>39,607 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to acquire patent license</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>42,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Provision for excess inventory</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>26,490 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Amortization of convertible debenture discount </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>893,149 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss on extinguishment of debt</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>343,517 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued to pay interest on convertible debentures</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>69,939 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Other&nbsp;</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>9,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,835 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Change in operating assets and liabilities:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Prepaid expenses and other current assets</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>8,574 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3,829 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accounts payable and accrued liabilities</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>572,180 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>132,261 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Derivative liability</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(315,189)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Deferred revenue</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(940,010)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 20pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Net cash used in operating activities</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,642,399)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(2,178,305)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=74% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Supplemental disclosure of non-cash financing actives:</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Common stock issued upon conversion of debentures</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,075,000 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=74% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Fair value of debenture embedded conversion feature</font></p></td> <td width=2% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,180,000 </font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=74% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 15pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Relative fair value of convertible debenture warrant</font></p></td> <td width=2% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>214,819 </font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=74% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=100% colspan=6 style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#ffffff" align=center valign=bottom> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>The accompanying notes are an integral part of these condensed financial statements.</font></p></td></tr></table></div></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p><a name=_aciFooter8> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">7</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_9> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader9> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="times new roman" lang=EN-US><a name=Notes>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(UNAUDITED)</font></u></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>BUSINESS&nbsp;AND&nbsp;FUNDING&nbsp;</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Description of Business and Basis of Presentation</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As used herein, &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; the &#147;Company&#148; and &#147;CopyTele&#148; refers to CopyTele, Inc.&nbsp; Our principal operations include the development, acquisition, licensing, and enforcement of patented technologies. While in the past, the primary operations of the Company involved licensing in connection with the development of patented technologies, the primary operations of the Company are now patent monetization, and patent assertion, in connection with the unauthorized use of patented technologies that are either owned or controlled by the Company or one of its wholly owned subsidiaries.&nbsp; As part of our patent assertion activities in the ordinary course of business, the Company, or our wholly owned subsidiaries, will likely initiate patent infringement lawsuits, and engage in patent infringement litigation.&nbsp; In addition to continuing to mine and monetize our existing patents, our wholly owned subsidiary, CTI Patent Acquisition Corporation will continue to acquire patents and the exclusive rights to exclusively license and enforce patents from third parties.&nbsp; The changes in the primary operations of the Company included elimination of product development efforts, accordingly, we are no longer incurring research and development expenses. Due to arrangements previously entered into by the Company, certain of our patents contain encumbrances which may negatively impact our patent monetization and patent assertion activities. Where we are able, we will take the steps necessary to remove any encumbrances that may inhibit our patent monetization and patent assertion efforts. We have obtained and will continue to obtain the rights to license and enforce additional patents from third parties, and when necessary, will assist such parties in the further development of their patent portfolios through the filing of additional patent applications. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the second quarter of fiscal year 2013, CopyTele, through its wholly owned subsidiary, CTI Patent Acquisition Corporation, acquired the exclusive rights to license and enforce two patent portfolios relating to (i) loyalty awards programs commonly provided by airlines, credit card companies, hotels, retailers, casinos, and others, and (ii) window frames with integrated J-Channels, commonly used in manufactured housing and replacement windows.&nbsp; In exchange, the respective licensors will receive a percentage of all net amounts received from the licensing and enforcement of each patent portfolio.&nbsp; In accordance with ASC 845-10-30-8, management determined that neither the fair value of the nonmonetary assets transferred nor the fair value of a nonmonetary assets received in exchange were determinable within reasonable limits, and therefore, no amounts have been reflected in the accompanying financial statements related to the acquisition of these two patent portfolios. &nbsp;As a result of these acquisitions, we currently own or control 6 patent portfolios which we have identified for patent monetization: ePaper&#174; Electrophoretic Display (&#147;EPD&#148;); Nano Field Emission Display (&#147;nFED&#148;); Key Based Web Conferencing </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Encryption (&#147;KB Encryption&#148;); J-Channel Window Frame Construction (&#147;J-Channel&#148;); &nbsp;Loyalty Conversion Systems (&#147;LCS&#148;); and Micro Electro Mechanical Systems Display (&#147;MEMS&#148;).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter9> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">8</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp;&nbsp;&nbsp;<a name=page_10><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader10> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader10> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the first quarter of fiscal year 2013, we initiated lawsuits against AU Optronics Corp. and E Ink Corporation in connection with our EPD and nFED patent portfolios.&nbsp; During the third quarter of fiscal year 2013, we launched a patent assertion program in connection with our KB Encryption patent portfolio, and filed patent infringement lawsuits against Microsoft Corporation in connection with its SKYPE and Lync, web conferencing services, Citrix Systems, Inc. in connection with its GoTo Meeting, GoTo Training, and GoTo Webinar web conferencing services, and Logitech, Inc, in connection with its LifeSize web conferencing services.&nbsp; Subsequent to July 31, 2013, we initiated our third patent assertion program by filing 8 patent infringement lawsuits related to our J-Channel patent portfolio against Lowe&#146;s Companies, Inc., Clayton Homes, Inc., Pella Corporation, Jeld-Wen, Inc., Atrium Windows and Doors, Inc., Ply Gem Industries, Inc., RGF Industries, Inc., Tafco Corporation, Kinro Manufacturing, Inc. and Elixir Industries, Inc.&nbsp; Also subsequent to July 31, 2013, we initiated our fourth patent assertion program by filing 10 patent infringement lawsuits related to our LCS patent portfolio against </font><font style="FONT-SIZE:12pt; BACKGROUND:white" face="Times New Roman" color=black lang=EN-US>Alaska Airlines, American Airlines, Delta Airlines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, United Airlines, and U.S. Airways</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>. In sum, we currently have 22 active lawsuits in connection with 5 of our patented technologies.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>The condensed consolidated financial statements include the accounts of CopyTele, Inc. and its wholly owned subsidiaries, as of July 31, 2013. All significant intercompany transactions have been eliminated in consolidation. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>In connection with the change in our operations, during the nine months ended July 31, 2013 we disposed of approximately $2,144,000 of fully depreciated assets, which primarily related to research and development activities.&nbsp; In addition, we have vacated and returned a substantial portion of our facilities to the landlord for possible re-letting and, during the first quarter of fiscal year 2013, recorded an expense of approximately $186,000 related to future rents of unused leased facilities.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The results of operations for interim periods presented are not necessarily indicative of the results that may be expected for a full year or any interim period.&nbsp; Reference is made to the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012, for more extensive disclosures than contained in these condensed consolidated financial statements.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Unless otherwise indicated, all references in this Form 10-Q to &#147;dollars&#148; or &#147;$&#148; refer to US dollars.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciFooter10> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">9</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_11> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader11> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader11> <div>&nbsp;</div> <p style="MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Funding</font></u></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.25in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>On April 23, 2013, we entered into a common stock purchase agreement (the &#147;Stock Purchase Agreement&#148;) with Aspire Capital Fund LLC (&#147;Aspire Capital&#148;), which provides that Aspire Capital is committed to purchase up to an aggregate of $10 million of shares of our common stock over the two-year term of the agreement.&nbsp; In consideration for entering into the Stock Purchase Agreement, concurrently with the execution of the agreement, we issued to Aspire Capital 3,500,000 shares of our common stock with a fair value of $700,000 as a commitment fee. Upon execution of the Stock Purchase Agreement, Aspire Capital purchased 2,500,000 shares on April 23, 2013 for $500,000.&nbsp; In order to sell any additional shares under the Stock Purchase Agreement, we were required to have a registration statement covering the shares issued to Aspire Capital declared effective by the Securities and Exchange Commission (the &#147;SEC&#148;). Such registration statement was declared effective by the SEC in June 2013.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Under the Stock Purchase Agreement there are two ways that we can elect to sell shares of common stock to Aspire Capital.&nbsp; On any business day we can select: (1)&nbsp;through a regular purchase of up to 200,000 shares (but not to exceed $200,000) at a known price based on the market price of our common stock prior to the time of each sale, and (2)&nbsp;through a volume-weighted average price, or VWAP, purchase of a number of shares up to 30% of the volume traded on the purchase date at a price equal to the lesser of (i) the closing sale price on the purchase date or (ii) 95% of the VWAP for such purchase date.&nbsp; The Company can only require a VWAP purchase if the closing sale price for our Common Stock on the notice day for the VWAP purchase is higher than $0.50 and the Company has also submitted a regular purchase notice to Aspire Capital in the amount of 200,000 shares on the notice date for the VWAP purchase.&nbsp; During the three months ended July 31, 2013 we sold an additional 600,000 shares of our common stock to Aspire Capital for approximately $132,000.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>The number of shares covered by and the timing of, each purchase notice are determined by us, at our sole discretion.&nbsp; The Company cannot execute any sales under the Stock Purchase Agreement when the closing for our common stock is less than $0.15.&nbsp; Aspire Capital has no right to require any sales from us, but is obligated to make purchases as directed in accordance with the Stock Purchase Agreement.&nbsp; The Stock Purchase Agreement may be terminated by us at any time, at our discretion, without any cost or penalty.&nbsp; We incurred expenses of approximately $42,000 in connection with the execution of the Stock Purchase Agreement in addition to the 3,500,000 shares of our common stock we issued as a commitment fee.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>On May 29, 2013, the Company offered the holders of the warrants issued in our February 2011 private placement, exercisable at a purchase price of $0.178 per share, the opportunity to exercise the warrants at a reduced exercise price of $0.16 per share (payable in cash) during the period ended July 15, 2013.&nbsp;&nbsp; In connection therewith, </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>our Chairman, our Chief Financial Officer and director, and one other director of the Company </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>exercised warrants to purchase 2,380,000 shares of our Common Stock and we received gross proceeds of approximately $381,000. </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Utilizing the Black-Scholes option-pricing model, </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>the Company determined that the aggregate incremental fair value of the&nbsp;repriced warrants&nbsp;was immaterial and no discount charge was recorded.&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In addition, during the three months ended July 31, 2013, we issued 547,493 shares of our common stock upon the exercise, on a &#147;cashless&#148; basis, of warrants to purchase 1,400,000 shares </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>at a purchase price of $0.178 per share</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter11> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">10</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_12> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader12> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader12> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader12> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the nine months ended July 31, 2013, our cash used in operating activities was approximately $2,642,000.&nbsp; This resulted from payments to suppliers, employees and consultants of approximately $2,645,000, which was partially offset by cash of approximately $2,000 received from collections of accounts receivable related to sales of encryption products and interest received of approximately $1,000.&nbsp; Our cash provided by investing activities during the nine months ended July 31, 2013 was approximately $499,000, which resulted from approximately $500,000 received upon the maturities of short-term investments consisting of certificates of deposit and approximately $1,000 received from the sale of Digital Info Security Co. Inc. common stock partially offset by purchases of equipment of approximately $2,000.&nbsp; Our cash provided by financing activities during the nine months ended July 31, 2013 was approximately $2,785,000, which resulted from cash received from the issuance of convertible debentures and warrants in a private placement of $1,765,000, the sale of common stock of approximately $632,000 less expenses incurred of approximately $42,000, cash received from the exercise of warrants issued in February 2011 of approximately $381,000, proceeds received from ZQX Advisors, LLC (&#147;ZQX&#148;) ( in which CopyTele has a 19.5% ownership interest) from the sale by ZQX of CopyTele common stock held by ZQX, of approximately $24,000, and cash received upon the exercise of employee stock options of approximately $26,000.&nbsp; As a result, our cash, cash equivalents and short-term investments at July 31, 2013 increased by approximately $142,000 to approximately $982,000 from approximately $840,000 at October 31, 2012.&nbsp;&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Total employee compensation expense for the nine-month periods ended July 31, 2013 and 2012 was approximately $3,161,000 and $1,939,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 was approximately $1,471,000 and $595,000, respectively.&nbsp; During the nine-months ended July 31, 2013 and 2012, a significant portion of employee compensation consisted of the issuance of stock and stock options to employees.&nbsp; We recorded stock-based compensation expense, related to stock awards granted to employees, for the nine-month periods ended July 31, 2013 and 2012 of approximately $-0- and $861,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 of approximately $-0- and $337,000, respectively.&nbsp; We recorded stock-based compensation expense, related to stock options granted to employees and directors, for the nine-month periods ended July 31, 2013 and 2012 of approximately $2,118,000 and $111,000 respectively, and for the three-month periods ended July 31, 2013 and 2012 of approximately $1,091,000 and $-0-, respectively. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter12> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">11</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_13> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader13> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader13> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader13> <div>&nbsp;</div><a name=_aciHeader13> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Based on currently available information, we believe that our existing cash and cash equivalents, together with expected cash flows from the Stock Purchase Agreement with Aspire Capital and expected cash flows from patent licensing and enforcement, and other potential sources of cash flows will be sufficient to enable us to continue our patent </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>licensing and enforcement activities for at least 12 months.&nbsp;However, our projections of future cash needs and cash flows may differ from actual results.&nbsp; If current cash on hand and cash that may be generated from the Stock Purchase Agreement and from patent licensing and enforcement activities are insufficient to satisfy our liquidity requirements, we may seek to sell our investment securities or other financial assets or our debt or additional equity securities or obtain loans from various financial institutions where possible.&nbsp;The sale of additional equity securities or convertible debt could result in dilution to our shareholders.&nbsp;We can give no assurance that we will generate sufficient cash flows in the future (through licensing and enforcement of patents, or otherwise) to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available, if needed, on favorable terms or at all.&nbsp;We can also give no assurance that we will have sufficient funds to repay our convertible debt at maturity in fiscal year 2015.&nbsp;If we cannot obtain such funding if needed or if we cannot sufficiently reduce operating expenses, we would need to curtail or cease some or all of our operations.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As shown in the accompanying condensed consolidated financial statements, as of October 31, 2012 we had an accumulated deficit of approximately $125,083,000 and a net shareholders&#146; deficiency of approximately $1,194,000.&nbsp;These and the other factors described in our Annual Report on Form10-K for the fiscal year ended October 31, 2012 raised substantial doubt about our ability to continue as a going concern.&nbsp;Management&#146;s plans in regard to these matters are set forth above.&nbsp;The accompanying condensed financial statements have been prepared assuming that we will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. The report from KPMG LLP, the Company&#146;s former independent registered public accountants, dated January 29, 2013, included in our Annual Report on Form10-K for the fiscal year ended October 31, 2012, included an explanatory paragraph related to our ability to continue as a going concern. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>AU Optronics Corp.</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In May 2011, we entered into an Exclusive License Agreement (the &#147;EPD License Agreement&#148;) and a License Agreement (the &#147;Nano Display License Agreement&#148;) with AU Optronics Corp. (&#147;AUO&#148;) (together the &#147;AUO License Agreements&#148;). On January 28, 2013, we terminated the AUO License Agreements due to numerous alleged material and continual breaches of the agreements by AUO.&nbsp; On January 28, 2013, we also filed a lawsuit in the United States District Court for the Northern District of California against AUO and E Ink Corporation (&#147;E Ink&#148;) in connection with the AUO License Agreements, alleging breach of contract and other charges, and we are seeking compensatory, punitive, and treble damages (the &#147;AUO/E Ink Lawsuit&#148;).&nbsp;In June of 2013, CopyTele and AUO agreed to arbitrate CopyTele&#146;s charges, which we believe should result in a faster and more efficient adjudication. &nbsp;The Court also ordered E Ink to participate in the arbitration, for purposes of discovery.&nbsp; For more details on the AUO/E Ink Lawsuit, please see Note 9, &#147;Contingences&#148; herein.&nbsp; We can give no assurance as to the outcome of this litigation. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciFooter13> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">12</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_14> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;Related Party Transactions with Videocon Industries Limited</font></u></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In November 2007, we entered into a Technology License Agreement (as amended in May 2008), (the &#147;Videocon License Agreement&#148;) with Videocon.&nbsp; Under the Videocon License Agreement, we provided Videocon with a non-transferable, worldwide license of our nFED patented technology. We are not presently involved in development efforts with Videocon and it is not anticipated that such efforts will be resumed in the future.&nbsp; We have entered into discussions with Videocon regarding the disposition of the Videocon License Agreement.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>At the same time we entered into the Videocon License Agreement in November 2007, we also entered into a Share Subscription Agreement (the &#147;Share Subscription Agreement&#148;) with Mars Overseas Limited, an affiliate of Videocon (&#147;Mars Overseas&#148;).&nbsp; Under the Share Subscription Agreement, Mars Overseas purchased 20,000,000 unregistered shares of our common stock (the &#147;CopyTele Shares&#148;) from us for an aggregate purchase price of $16,200,000.&nbsp; Also in November 2007, our wholly-owned subsidiary, CopyTele International Ltd. (&#147;CopyTele International&#148;), entered into a GDR Purchase Agreement with Global EPC Ventures Limited (&#147;Global&#148;), for CopyTele International to purchase from Global </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>1,495,845 global depository receipts of Videocon (the &#147;Videocon GDRs&#148;) for an aggregate purchase price of $16,200,000.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>For the purpose of effecting a lock up of the Videocon GDRs and CopyTele Shares (collectively, the &#147;Securities&#148;) for a period of seven years, and therefore restricting both parties from selling or transferring the Securities during such period, CopyTele International and Mars Overseas entered into two Loan and Pledge Agreements in November 2007.&nbsp; The Videocon GDRs are to be held as security for a loan in the principal amount of $5,000,000 from Mars Overseas to CopyTele International, and the CopyTele Shares are similarly held as security for a loan in the principal amount of $5,000,000 from CopyTele International to Mars Overseas.&nbsp;The loans are for a period of seven years, do not bear interest, and prepayment of the loans will not release the lien on the Securities prior to end of the seven year period.&nbsp; The loan agreements provide for customary events of default, which may result in forfeiture of the Securities by the defaulting party, and also provide for the transfer to the respective parties, free and clear of any encumbrances under the agreements, any dividends, distributions, rights or other proceeds or benefits in respect of the Securities.&nbsp; The loan receivable from Mars Overseas is classified as a contra-equity under shareholders&#146; deficiency in the accompanying condensed consolidated balance sheet because the loan receivable is secured by the CopyTele Shares and the Share Subscription Agreement and Loan and Pledge Agreement were entered into concurrently. We have entered into discussions with Videocon regarding the disposition of the Subscription Agreement, GDR Purchase Agreement, and Loan and Pledge Agreements. The outcome of these discussions and the disposition of the related assets and liabilities may have a material effect on our financial statements. We cannot presently estimate the timing or impact of any such resolution.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter14> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">13</font></font></p></td></tr></table></div></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_15> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader15> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader15> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader15> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Revenue Recognition</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of the arrangement, (iii) amounts are fixed or determinable, and (iv) the collectability of amounts is reasonably assured.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We have assessed the revenue guidance of Accounting Standards Codification (&#147;ASC&#148;) 605-25 &#147;Multiple-Element Arrangements&#148; (&#147;ASC 605-25&#148;) to determine whether </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>multiple deliverables in our arrangements with AUO represent separate units of accounting</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp; Under the AUO License Agreements</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>, we</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> received initial license fees of $3 million, of aggregate license fees of up to $10 million.&nbsp; The additional $7 million in license fees were payable upon completion of certain conditions for the respective technologies.&nbsp; We have determined that the transfer of the licensed patents and technology and the effort involved in completion of the conditions for the respective technologies represent a single unit of accounting for each technology.&nbsp; Accordingly, using a proportional performance method, during the third quarter of fiscal year 2011 we began recognizing the $3 million initial license fees over the estimated periods that we expected to complete the conditions for the respective </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>technologies. We have not recognized any portion of the $7 million of additional license fees as either deferred revenue or revenue as it is considered contingent revenue. &nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The AUO License Agreements also provided for the basis for royalty payments on future production, if any, by AUO to CopyTele, which we have determined represent separate units of accounting.&nbsp; We have not recognized any royalty income under the AUO License Agreements.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Prior to initiation of the AUO/E Ink Lawsuit, at each reporting period</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> we assessed the progress in completing our performance obligations under the AUO License Agreements and recognized license fee revenue over the remaining estimated period that we expected to complete the conditions for the respective technologies.</font><font style=FONT-SIZE:12pt face="Times New Roman" color=red lang=EN-US>&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Commencing in the fourth quarter of fiscal year 2012, revenue recognition under the AUO License Agreements was suspended pending resolution of the AUO/E Ink Lawsuit.&nbsp; For more details on the AUO/E Ink Lawsuit, please see Note 9, &#147;Contingencies&#148; herein.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the nine-month periods ended July 31, 2013 and 2012 we recognized approximately $-0- and $940,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 $-0- and $247,000, respectively, of license fee revenue from AUO.&nbsp; License fee payments received from AUO which are in excess of the amounts recognized as revenue (approximately $1,187,000 as of July 31, 2013) are recorded as non-refundable deferred revenue on the accompanying consolidated balance sheet</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter15> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">14</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_16> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader16> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader16> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader16> <div>&nbsp;</div><a name=_aciHeader16> <p style="MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>CONVERTIBLE DEBENTURES</font></u></p><a name=_aciHeader16> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Convertible Instruments </font></u></p><a name=_aciHeader16> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company accounts for hybrid contracts that feature conversion options in accordance with applicable generally accepted accounting principles (&#147;GAAP&#148;).&nbsp; ASC &nbsp;815 &#147;Derivatives and Hedging Activities,&#148; (&#147;ASC 815&#148;) requires companies to bifurcate </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria includes circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b)&nbsp;the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c)&nbsp;a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion options that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company accounts for convertible instruments, when the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, in accordance with ASC 470-20 &#147;Debt with Conversion and Other Options&#148; (&#147;ASC 470-20&#148;). Under ASC 470-20 the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. The Company accounts for convertible instruments (when the Company has determined that the embedded conversion options should be bifurcated from their host instruments) in accordance with ASC 815.&nbsp;&nbsp;Under ASC 815, a portion of the proceeds received upon the issuance of the hybrid contract are allocated to the fair value of the derivative. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The conversion feature of the convertible debenture issued on January 25, 2013 qualified as an embedded derivative instrument and was bifurcated from the host convertible debenture.&nbsp; Accordingly, this instrument has been classified as a derivative liability in the accompanying condensed consolidated balance sheet as of July 31, 2013. &nbsp;Derivative liabilities are initially recorded at fair value and are then re-valued at each reporting date, with changes in fair value recognized in earnings during the reporting period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Common Stock Purchase Warrants </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company classifies as equity any contracts that (i)&nbsp;require physical settlement or net-share settlement or (ii) provides a choice of net-cash settlement or settlement in the Company&#146;s own shares (physical settlement or net-share settlement)&nbsp;providing that such contracts are indexed to the Company's own stock as defined in ASC 815-40 "Contracts in Entity's Own Equity". The Company classifies as assets or liabilities any contracts that (i)&nbsp;require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company&#146;s control) or (ii) gives the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).&nbsp;&nbsp;The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities or equity is required.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><a name=_aciFooter16> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">15</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_17> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader17> <div> <p style="MARGIN:0in 0in 0pt" /></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Convertible Debenture due September 2016</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In September 2012, the Company received aggregate gross proceeds of $750,000 from the issuance of 8% convertible debentures due September 12, 2016 in a private placement, of which $300,000 was sold to the Company&#146;s current Chairman and then Chief Executive Officer and one other director of the Company.&nbsp; The debentures paid interest quarterly and were convertible into shares of our common stock at a conversion price of $0.092 per share on or before September 12, 2016.&nbsp; The Company recorded a discount to the carrying amount of the debentures of approximately $717,000 related to the debentures&#146; beneficial conversion feature.&nbsp; The Company was permitted to prepay the debentures at any time without penalty upon 30 days prior notice.&nbsp; The Company also had the option to pay interest on the debentures in common stock.&nbsp; During the second quarter of fiscal 2013, the entire $750,000 principal amount of these debentures were converted into 8,152,170 shares of common stock and an additional 100,725 shares were issued in payment of approximately $9,300 of accrued interest through the conversion date.&nbsp; The conversion of the debentures resulted in a charge to interest expense of approximately $717,000 during the second quarter of fiscal 2013.&nbsp; </font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Convertible Debenture due January 2015</font></u></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In January 2013, the Company received aggregate gross proceeds of $1,765,000 from the issuance of 8% convertible debentures due January 25, 2015 (&#147;Convertible Debenture due January 2015&#148;), of which $250,000 was received from our current President, Chief Executive Officer and director, and two other directors of the Company.&nbsp; The debentures pay interest quarterly and are convertible into shares of our common stock at a conversion price of $0.15 per share on or before January 25, 2015.&nbsp; The embedded conversion feature has certain weighted average anti-dilution protection provisions which would be triggered if the Company issues its common stock, or certain common stock equivalents, (as defined) at a price below $0.15 per share.&nbsp; The Company has the option to pay any interest on the debentures in common stock based on the average of the closing prices of&nbsp; our common stock for the 10 trading days immediately preceding the interest payment date.&nbsp; The Company also has the option to pay any interest on the debentures with additional debentures.&nbsp; The Company may prepay the debentures at any time without penalty upon 30 days prior notice but only if the sales price of the common stock is at least $.30 for 20 trading days in any 30-day trading period ending no more than 15 days before the Company&#146;s prepayment notice.&nbsp; In conjunction with the issuance of the debentures, the Company issued warrants (the &#147;Convertible Debenture Warrant&#148;) to purchase 5,882,745 shares of its common stock.&nbsp; Each warrant grants the holder the right to purchase one share of the Company&#146;s common stock at the purchase price of $0.30 per share on or before January 25, 2016.&nbsp; The Convertible Debenture Warrant may be exercised on a cashless basis only if there is not an effective registration statement covering such shares.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter17> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">16</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_18> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader18> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader18> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader18> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company determined, based upon authoritative guidance, that the conversion feature embedded within the Convertible Debenture due January 2015 should be valued separately and bifurcated from the host instrument and accounted for as a free-standing derivative liability and that the Convertible Debenture Warrant should also be valued and accounted for separately as an equity instrument.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company determined the fair value of each of the three elements included within the Convertible Debenture due January 2015.&nbsp; The debenture portion (without the conversion feature) bearing interest at 8% was determined to be a debt instrument with a fair value of $1,490,000.&nbsp; The embedded conversion feature was determined to be a derivative liability with a fair value of $1,180,000.&nbsp; The Convertible Debenture Warrant was determined to be an equity instrument with a fair value of $370,000.&nbsp; The Company determined the fair value of each of these instruments based upon the assumptions and methodologies as discussed below.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Since the Convertible Debenture Warrant was determined to be an equity instrument, the Company first computed the relative fair value of the Convertible Debenture due January 2015 (including the value of its conversion feature) with a fair value of $2,670,000 and the Convertible Debenture Warrant with a fair value of $370,000.&nbsp;&nbsp; Accordingly, the relative fair value of the Convertible Debenture Warrant and the Convertible Debenture due January 2015 (including the value of its conversion feature) was determined to be $214,819 and $1,550,181, respectively.&nbsp; Then, from the relative fair value of the Convertible Debenture due January 2015, the Company deducted in full the fair value of the embedded conversion feature of $1,180,000.&nbsp;&nbsp; The discount of $1,394,819 applied to the face value of the Convertible Debenture due January 2015 consists of the sum of the relative fair value of the Convertible Debenture Warrant of $214,819 and the full value of the bifurcated conversion option derivative liability of $1,180,000.&nbsp; The Convertible Debenture due January 2015 was recorded at a net value of $370,181, representing its face value of $1,765,000, less aggregate discounts for the derivative liability and warrant of $1,394,819, as summarized in the table below.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=72% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Face value of Convertible Debenture due January 2015</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>1,765,000 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=72% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Fair value of embedded conversion feature</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,180,000 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=72% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Relative fair value of Convertible Debenture Warrant</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>214,819 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=72% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Discount</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,394,819 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,394,819)</font></p></td></tr> <tr style=HEIGHT:13.8pt> <td width=72% style="HEIGHT:13.8pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Proceeds attributable to the Convertible Debenture due January 2015 </font></p></td> <td width=2% style="HEIGHT:13.8pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=11% style="HEIGHT:13.8pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:13.8pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:13.8pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=11% style="HEIGHT:13.8pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>370,181 </font></p></td></tr></table></div></div> <div align=center>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Accordingly, the Company accounted for the full amount of the discount as an offset to the Convertible Debenture due January 2015, amortizable under the effective interest method over the term of the debenture.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter18> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">17</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_19> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader19> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader19> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader19> <div>&nbsp;</div><a name=_aciHeader19> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company calculated the fair value of the embedded conversion feature of the Convertible Debenture due January 2015 using a Monte Carlo simulation, with the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>observable assumptions as provided in the table below.&nbsp;The significant unobservable inputs used in the fair value measurement of the reporting entity&#146;s embedded conversion feature are expected stock prices, levels of trading and liquidity of the Company stock, probability of default of the host instrument, and loss severity in the event of such default. Significant increases in the expected stock prices and expected liquidity would result in a significantly higher fair value measurement.&nbsp;Significant increases in either the probability or severity of default of the host instrument would result in a significantly lower fair value measurement.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>As of</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>January 25, 2013</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>and January 31, 2013</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock price on valuation date</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.21 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Conversion price</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.15 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock premium for liquidity</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>57%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Term (years)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>2.00</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expected volatility</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>110%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted average risk-free interest rate</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.3%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Trials</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>100,000</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Aggregate fair value</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,180,000 </font></p></td></tr></table></div> <div align=center>&nbsp;</div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company calculated the fair value of the Convertible Debenture Warrant issued on January 25, 2013 using the Black-Scholes option pricing model with the following assumptions:&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>As of</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>January 25, 2013</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock price on valuation date</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.21 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Exercise price</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.30 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock premium for liquidity</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>38%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Term (years)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>3.00</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Warrant exercise trigger price</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>41%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expected volatility</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>95%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted average risk-free interest rate</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.4%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number of warrants</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,882,745</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Aggregate fair value</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>370,000 </font></p></td></tr></table></div> <div align=center>&nbsp;</div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company determined the fair value of the Convertible Debenture due January 2015 by preparing an analysis of discounted cash flows, using a discount rate of 18.6%, which the Company deemed appropriate given the Company&#146;s current risk scenarios.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" color=black lang=EN-US>The derivative liability related to the embedded conversion feature is revalued at each reporting period as well as on the date of all conversions, as discussed, below.&nbsp; As of July 31, 2013, the Company determined the fair value of the derivative liability to be </font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" color=black lang=EN-US>$700,000, and accordingly, during the three and nine months ended July 31, 2013, the Company recorded a gain on the change in the fair value of the derivative liability of $105,189 and $315,189, respectively. There was no change in the fair value of the derivative liability at January 31, 2013.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter19> <div> <div> <div align=center><font style=FONT-SIZE:10pt>18</font></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_20> <p style="BACKGROUND:white; TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As of July 31, 2013, the Company calculated the fair value of the embedded conversion feature of the Convertible Debenture due January 2015 using a Monte Carlo simulation, with the observable assumptions as provided in the table below. &nbsp;The significant unobservable inputs used in the fair value measurement of the reporting entity&#146;s embedded conversion feature are expected stock prices, levels of trading and liquidity of the Company stock, probability of default of the host instrument, and loss severity in the event of such default. &nbsp;Significant increases in the expected stock prices and expected liquidity would result in a significantly higher fair value measurement.&nbsp; Significant increases in either the probability or severity of default of the host instrument would result in a significantly lower fair value measurement.&nbsp; </font></p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%" align=center>&nbsp;</div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%" align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>As of</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>July 31, 2013</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock price on valuation date</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.22 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Conversion price</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.15 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock premium for liquidity</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>42%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Term (years)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>1.50</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expected volatility</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>115%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted average risk-free interest rate</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.3%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Trials</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>100,000</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Aggregate fair value</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>700,000 </font></p></td></tr></table></div></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%" align=center>&nbsp;</div> <p style="BACKGROUND:white; TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" color=black lang=EN-US>The amortization of debt discount related to the Convertible Debenture due January 2015 was $92,024 and $175,460 for the three and nine months ended July 31, 2013, respectively.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" color=black lang=EN-US><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the three months ended July 31, 2013, holders of $325,000 and $5,878 of principal and interest, respectively, of the Convertible Debenture due January 2015, converted their holdings into an aggregate of 2,166,775 and 20,125 shares of Common Stock.&nbsp; In connection with this conversion, the Company recorded a loss on extinguishment of debt in the amount of $343,516.&nbsp; This loss represents the excess of the fair value of Common Stock on the date of&nbsp;conversion over the net book value of the debt on the date of conversion.&nbsp; Since the conversion feature on the Convertible Debenture due January 2015 was determined to be a derivative liability, the net book value includes both the value of the debt, net of discount, and the portion of the derivative liability related to its conversion feature.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <div align=left>&nbsp;</div> <div align=center><font style=FONT-SIZE:10pt>19</font></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_21> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader21> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader21> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader21> <div>&nbsp;</div> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" color=black lang=EN-US>The loss on extinguishment of debt was calculated as follows:</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=20% colspan=2 style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt" align=center></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>For the three months ended</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=20% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt" align=center></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=TEXT-AUTOSPACE:ideograph-numeric>July 31, 2013</font></font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Face value of debt converted</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=18% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>325,000 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Less: discount</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=18% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(229,964)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Plus: value of derivative liability</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=18% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>164,811 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>Net book value of debt converted</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=18% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>259,847 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=80% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Fair value of Common stock issued</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=18% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>603,364 </font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=80% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Loss on extinguishment of debt</font></p></td> <td width=2% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=18% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>343,517 </font></p></td></tr></table></div> <div align=left>&nbsp;</div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In connection with the issuance of the Convertible Debenture due January 2015, the Company provided compensation to the placement agent consisting of a cash fee of $41,400 and a warrant for the purchase of 276,014 shares of the Company&#146;s common stock (&#147;Placement Agent Warrant&#148;).&nbsp; The terms of the Placement Agent Warrant are identical to the terms of the Convertible Debenture Warrant, and using Black-Scholes, upon issuance, was determined to have a fair value of $17,360.&nbsp; Assumptions for the valuation of the Placement Agent Warrant were identical to those provided above for the Convertible Debenture Warrant.&nbsp; In addition, issuance costs included legal fees of approximately $25,000.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The sum of the issuance costs was $83,760, and this cost was allocated as provided below:</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.95pt> <td width=40% style="HEIGHT:15.95pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Attributable to:</font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.95pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Accounting Treatment</font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=16% colspan=2 style="HEIGHT:15.95pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Amount</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=14% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>The embedded conversion feature (derivative)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expensed as incurred</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=14% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>55,999 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=14% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>The 8% Convertible Debenture Warrant</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Charged to additional paid-in capital</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=14% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>10,194</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=14% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:31.2pt> <td width=40% style="HEIGHT:31.2pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>The 8% Convertible Debenture</font></p></td> <td width=2% style="HEIGHT:31.2pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:31.2pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Recorded as deferred issuance costs and amortized under the interest method over the term of the 8% Convertible Debenture</font></p></td> <td width=2% style=BACKGROUND-COLOR:#cceeff valign=top><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style="BORDER-BOTTOM:#000000 1px solid; BACKGROUND-COLOR:#cceeff" valign=top><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=14% style="HEIGHT:31.2pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>17,567</font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=40% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total</font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; BORDER-BOTTOM:#000000 3px double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=14% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>83,760 </font></p></td></tr></table></div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><a name=_aciFooter21> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">20</font></font></p></td></tr></table></div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_22> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader22> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader22> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader22> <div>&nbsp;</div><a name=_aciHeader22> <div><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with the issuance of the Convertible Debenture due January 2015, on April 24, 2013, the Company prepared and filed a registration statement registering for resale the shares of its common stock which may be issued upon the conversion of the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>debenture consistent with the terms and conditions of the registration rights agreement the Company entered into with the holders of the registrable shares listed above. The registration statement was declared effective by the SEC on June 19, 2013. </font></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has agreed to maintain the effectiveness of the registration statement through the earlier of three years from the date of the issuance of the Convertible Debenture due January 2015 or until Rule 144 of the Securities Act is available to the holders to allow them to sell all of their registrable securities thereunder. </font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>3.&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>STOCK-BASED COMPENSATION</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We maintain stock equity incentive plans under which we may grant non-qualified stock options, stock appreciation rights, stock awards, performance awards, or stock units to employees, directors and consultants.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Stock Option Compensation Expense </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We account for stock options granted to employees and directors using the accounting guidance in ASC 718 &#147;Stock Compensation&#148; (&#147;ASC 718&#148;).&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>In accordance with ASC 718, we estimate the fair value of service based stock options and performance based options on the date of grant, using the Black-Scholes pricing model.&nbsp; For options vesting if the trading price of the Company&#146;s common stock exceeds two separate price targets we use a Monte Carlo Simulation in estimating the fair value at grant date. </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We recognize compensation expense for stock option awards over the requisite or implied service period of the grant.&nbsp; We recorded stock-based compensation expense, related to stock options granted to employees and directors, of approximately $1,979,000 and $111,000, during the nine-month periods ended July 31, 2013 and 2012, respectively, and approximately $952,000 and $-0- during the three-month periods ended July 31, 2013 and 2012, respectively.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Included in stock-based compensation cost for employees and directors during the nine months ended July 31, 2013 and 2012 was approximately $2,118,000 and $5,000, respectively, and during the three month periods ended July 31, 2013 and 2012 was approximately $1,091,000 and $2,000, respectively, related to the amortization of compensation cost for stock options granted to employees and directors in prior periods but not yet vested.&nbsp; As of July 31, 2013, there was unrecognized compensation cost related to non-vested share-based compensation arrangements for stock options granted to employees and directors, related to service based options of approximately $1,997,000 which will be recognized over a weighted-average period of 2.0 years, related to options subject to market conditions of approximately $832,000 which will be recognized over a weighted-average period of 1.2 years and related to performance based options of approximately $97,000 which will be recognized over an expected period of approximately .01 years.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter22> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">21</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_23><br> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader23> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b> <p style="MARGIN-LEFT:0in; MARGIN-RIGHT:0in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We account for stock options granted to consultants using the accounting guidance included in ASC 505-50 &#147;Equity-Based Payments to Non-Employees&#148; (&#147;ASC 505-50&#148;).&nbsp; In accordance with ASC 505-50, </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>we estimate the fair value of service based stock options at each reporting period, and performance based options at each reporting </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>period when the achievement is considered probable, using the Black-Scholes pricing model.&nbsp; F</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>or options vesting if the trading price of the Company&#146;s common stock exceeds two separate price targets we estimate the fair value at each reporting period using a Monte Carlo Simulation. &nbsp;We did not issue any stock options to consultants during the nine-month periods ended July 31, 2013 and 2012. </font></p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;We recorded stock-based compensation expense for consultants during the three and nine months ended July 31, 2013 of approximately $147,000 and $574,000, respectively, and for the three and nine months ended July 31, 2012 of approximately $-0- and $-0-, respectively, related to stock options granted in prior periods but not yet vested.&nbsp; As of July 31, 2013, there was unrecognized consulting expense related to non-vested share-based compensation arrangements for stock options granted to consultants, related to service based options of approximately $1,047,000 which will be recognized over a weighted-average period of 2.2 years, related to options subject to market conditions of approximately $663,000 which will be recognized over a weighted-average period of 2.2years and related to performance based options of approximately $472,000 which will be recognized upon attainment of performance.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Fair Value Determination&nbsp; </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>In September 2012 we instituted changes to our operations as more fully described in Note 1.&nbsp; Prior to that date we separated the individuals we granted stock options to into three relatively homogenous groups, based on exercise and post-vesting employment termination behaviors.&nbsp; To determine the weighted average fair value of stock options on the date of grant, we took a weighted average of the assumptions used for each of these groups.&nbsp; Subsequent to that date individuals are included in a single group.&nbsp; The fair value of stock options granted to consultants is determined on an individual basis.&nbsp; The stock options we granted during the nine months ended July 31, 2013 consisted of awards of options with 5-year terms, which vest over one year and options with 10-year terms which vest in three annual installments commencing on the date of grant or over a nine month period.&nbsp; The stock options we granted during the nine months ended July 31, 2012 consisted of awards of options with 10-year terms which vested immediately.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 6pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="times new roman" lang=EN-US>The following weighted average assumptions were used in estimating the fair value of stock options granted during the nine months ended July 31, 2013 and 2012. No stock options were granted during the three months ended July 31, 2013 and 2012.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 6pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=24% colspan=5 style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>For the Nine Months</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=24% colspan=5 style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Ended July 31,</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2013</font></font></font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>2012</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted average fair value at grant date</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>.17 </font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.08 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Valuation assumptions:</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expected life ( years)</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5.26</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1.43</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expected volatility</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>116.5%</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>124%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Risk-free interest rate</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>.73%</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>.20%</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=76% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Expected dividend yield</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0</font></p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="BORDER-TOP:0px; HEIGHT:15.25pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; BORDER-LEFT:0px; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0</font></p></td></tr></table></div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciFooter23> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">22</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_24> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader24> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader24> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader24> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We use the Black-Scholes pricing model in estimating the fair value of stock options which vest over a specific period of time or upon achieving cash milestones.&nbsp; The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding.&nbsp; For options granted prior to the change in our operations in September 2012, actual historical performance was used for awards exercised or cancelled.&nbsp; For awards that remained unexercised and outstanding, even exercise over the remaining contractual term was assumed.&nbsp; Each category was weighted for its relative size in the population and was then multiplied by the indicated expected term for each category to arrive at the expected term for the population.&nbsp; For options granted subsequent to the changes in our operations during the fourth quarter of fiscal 2012, we used the simplified method to determine expected term.&nbsp; The simplified method was adopted since we do not believe that historical experience is representative of future performance because of the impact of the changes in our operations and the change in terms from historical options which vested immediately to terms including vesting periods of up to three years.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Under the Black-Scholes pricing model we estimated the expected volatility of our shares of common stock based upon the historical volatility of our share price over a period of time equal to the expected term of the options.&nbsp; We estimated the risk-free interest rate based on the implied yield available on the applicable grant date of a U.S. Treasury note with a term equal to the expected term of the underlying grants.&nbsp; We made the dividend yield assumption based on our history of not paying dividends and our expectation not to pay dividends in the future.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>For options vesting if the trading price of the Company&#146;s common stock exceeds two separate price targets we used a Monte Carlo Simulation in estimating the fair value. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Under ASC 718, the amount of stock-based compensation expense recognized is based on the portion of the awards that are ultimately expected to vest.&nbsp; Accordingly, if deemed necessary, we reduce the fair value of the stock option awards for expected forfeitures, which are forfeitures of the unvested portion of surrendered options.&nbsp; Based on our historical experience we have not reduced the amount of stock-based compensation expenses for anticipated forfeitures.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We will reconsider use of the Black-Scholes pricing model if additional information becomes available in the future that indicates another model would be more appropriate.&nbsp; If factors change and we employ different assumptions in the application of ASC 718 in future periods, the compensation expense that we record under ASC 718 may differ significantly from what we have recorded in the current period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter24> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">23</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_25> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader25> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader25> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader25> <div>&nbsp;</div><a name=_aciHeader25> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Stock Option Activity </font></u></p><a name=_aciHeader25> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciHeader25> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the nine-month periods ended July 31, 2013 and 2012, we granted options to employees and directors to purchase 180,000 and 1,290,000 shares, respectively, of common stock at weighted average exercise prices of $0.20 and $0.16 per share, respectively, pursuant to the CopyTele, Inc. 2010 Share Incentive Plan (the "2010 Share Plan). During the nine-month period ended July 31, 2013, in addition to options granted </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>under the 2010 Share Plan, we granted options to our outside directors to purchase 3,000,000 shares at weighted average excise prices of $0.21 per share. During the nine-month periods ended July 31, 2013 and 2012, stock options to purchase 146,000 shares and 1,290,000 shares, respectively, of common stock were exercised with aggregate proceeds of approximately $26,000 and $208,000, respectively. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 12pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Stock&nbsp;Option&nbsp;Plans</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As of July 31, 2013, we have two stock option plans:&nbsp; the CopyTele, Inc. 2003 Share Incentive Plan (the "2003 Share Plan") and the 2010 Share Plan, which were adopted by our Board of Directors on April 21, 2003 and July 14, 2010, respectively.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The 2003 Share Plan provides for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to key employees and consultants.&nbsp; The maximum number of shares of common stock available for issuance under the 2003 Share Plan is 70,000,000 shares. The 2003 Share Plan was administered by the Stock Option Committee through June 2004, from June 2004 through July 2010, by the Board of Directors, from July 2010 through August 2012, by the Stock Option Committee, from August 2012 through November 2012, by the Executive Committee of the Board of Directors and since November 2012, by the Board of Directors, which determines the option price, term and provisions of each option.&nbsp; The exercise price with respect to all of the options granted under the 2003 Share Plan since its inception was equal to the fair market value of the underlying common stock at the grant date. In accordance with the provisions of the 2003 Share Plan, the plan terminated with respect to the grant of future options on April 21, 2013. Information regarding the 2003 Share Plan for the nine months ended July 31, 2013 is as follows:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=58% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=14% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Weighted</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average Exercise</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Price Per Share</font></font></font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Aggregate</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Intrinsic</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Value</font></font></font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=58% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=58% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Shares</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=58% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Outstanding at October 31, 2012</font></p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>16,350,045</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.72 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=58% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Exercised</font></p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(130,000)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.18 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=58% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Forfeited</font></p></td> <td width=12% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(521,200)</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.74 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.95pt> <td width=58% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Outstanding at July 31, 2013</font></p></td> <td width=12% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>15,698,845</font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.72 </font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>136,540 </font></p></td></tr> <tr style=HEIGHT:16.7pt> <td width=58% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Exercisable at July 31, 2013</font></p></td> <td width=12% style="HEIGHT:16.7pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>15,638,845</font></p></td> <td width=2% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.72 </font></p></td> <td width=2% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:16.7pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>127,750 </font></p></td></tr></table></div> <p> <p style="MARGIN:0in 0in 10pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 6pt 0.25in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="times new roman" lang=EN-US>The following table summarizes information about stock options outstanding under the 2003 Share Plan as of July 31, 2013: </font></p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=56% colspan=7 style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Stock Options Outstanding</font></font></font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=42% colspan=5 style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Stock Options Exercisable</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="BORDER-BOTTOM:#000000 1px solid" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Remaining</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Contractual Life</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">(in years)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="BORDER-BOTTOM:#000000 1px solid" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Remaining</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Contractual Life</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">(in years)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Exercise</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Price</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Range of</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Exercise</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Prices</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Price</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Outstanding</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercisable</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.07 - $0.37</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,860,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3.46</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.15 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,800,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3.44</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.16 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.43 - $0.70</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,384,770</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2.21</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.60 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,384,770</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2.21</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.60 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.74 - $0.92</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,199,075</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3.03</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.85 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,199,075</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>3.03</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.85 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$1.04 - $1.46</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,255,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2.49</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$1.10 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,255,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2.49</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$1.10 </font></p></td></tr> <tr> <td width=12% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=13% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=13% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=12% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=13% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=13% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=2% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td> <td width=12% style=BACKGROUND-COLOR:#ffffff valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td></tr></table></div></div> <div align=center>&nbsp;</div><a name=_aciFooter25> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">24</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_26> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader26> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The 2010 Share Plan provides for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to key employees and consultants.&nbsp; The maximum number of shares of common stock available for issuance under the 2010 Share Plan was initially 15,000,000 shares. On July 6, 2011, the 2010 Share Plan was amended by our Board of Directors to increase the maximum number of shares of common stock that may be granted to 27,000,000 shares, and on August 29, 2012, the maximum number of shares was further increased to 30,000,000 shares. Current and future non-employee directors are automatically granted nonqualified stock options to purchase up to 60,000 shares of common stock upon their initial election to the Board of Directors and 60,000 shares of common stock at the time of each subsequent annual meeting of our shareholders at which they are elected to the Board of Directors.&nbsp; The 2010 Share Plan was administered by the Stock Option Committee through August 2012, from August 2012 through November 2012, by the Executive Committee of the Board of Directors and since November 2012, by the Board of Directors, which determines the option price, term and provisions of each option. The exercise price with respect to all of the options granted under the 2010 Share Plan was equal to the fair market value of the underlying common stock at the grant date.&nbsp; As of July 31, 2013, the 2010 Share Plan had 1,075,020 shares available for future grants.&nbsp; Information regarding the 2010 Share Plan for the nine months ended July 31, 2013 is as follows: </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=62% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Weighted</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average Exercise</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Price Per Share</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Aggregate</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Intrinsic</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Value</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=62% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=62% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Shares</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=62% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Outstanding at October 31, 2012</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,820,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.25 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=62% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Granted</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>180,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.20 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=62% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt 10pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Exercised</font></p></td> <td width=10% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(16,000)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.16 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=62% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Outstanding at July 31, 2013</font></p></td> <td width=10% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,984,000</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.25 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>32,562 </font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=62% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Exercisable at July 31, 2013</font></p></td> <td width=10% style="HEIGHT:15.95pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,126,500</font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>0.26 </font></p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=10% style="HEIGHT:15.95pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>23,622 </font></p></td></tr></table></div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The following table summarizes information about stock options outstanding under the 2010 Share Plan as of July 31, 2013:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=center>&nbsp;</div> <div align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=6% colspan=7 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt" align=center> <p style="MARGIN:0in 0in 0pt" align=center></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Options Outstanding</font></font></font></p></td> <td width=4% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=40% colspan=5 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=bottom> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Exercisable</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="BORDER-BOTTOM:#000000 1px solid" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Remaining</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Contractual Life</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">(in years)</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=4% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Remaining</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Contractual Life </font></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">(in years)</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Price</font></p></td> <td width=4% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Price</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=13% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Range of</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Prices</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Outstanding</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=4% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercisable</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=3% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=4% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=3% style="BORDER-BOTTOM:#000000 1px solid" valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td></tr> <tr style=HEIGHT:14.5pt> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=4% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.12 - $0.37</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,984,000</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5.98</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.25 </font></p></td> <td width=4% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>2,126,500</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5.26</font></p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.26 </font></p></td></tr></table></div></div> <div align=center>&nbsp;</div><a name=_aciFooter26> <div> <div> <div align=center><font style=FONT-SIZE:10pt>25</font></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_27> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader27> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader27> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader27> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>In addition to options granted under the 2003 Share Plan and the 2010 Share Plan, in September 2012, the Board of Directors approved the grant of stock options to purchase 41,500,000 shares and, during the nine months ended July 31, 2013, the Board of Directors approved the grant of stock options to purchase 3,000,000 shares</font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>. &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Of the stock options granted in September 2012, nonqualified options to purchase 40,000,000 shares were issued to our new executive team, consisting of 16,000,000 stock options issued to our new President and Chief Executive Officer, 8,000,000 stock options issued to our new Senior Vice President of Engineering and 16,000,000 stock options issued to a new strategic advisor to the Company.&nbsp; These stock options have an </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt" face="Times New Roman" lang=EN-US>exercise price of $0.2175 (the average of the high and the low sales price of the common stock on the trading day immediately preceding the approval of such options by the Board of Directors) and </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>have a term of ten years.&nbsp; </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt" face="Times New Roman" lang=EN-US>Half of these stock options vest in 36 equal monthly installments commencing on October 31, 2012, provided that if the grantees are terminated by the Company without cause, an additional 12 months of vesting will be accelerated and such accelerated options will become immediately exercisable.&nbsp; The balance of the stock options will vest in three equal installments upon achievement of a cash milestone and two stock price targets.&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As of July 31, 2013, the outstanding options to purchase 40,000,000 shares had an intrinsic value of $20,000.&nbsp; </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt" face="Times New Roman" lang=EN-US>As of July 31, 2013, 5,555,556 of these stock options were exercisable with an aggregate intrinsic value of approximately $3,000.&nbsp; These stock options otherwise have the same terms and conditions as options granted under the Company&#146;s 2010 Share Incentive Plan.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>The remaining </font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>nonqualified&nbsp;</font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US> stock options granted in September 2012 to purchase 1,500,000 shares consisted of grants of 750,000 stock options to our Chairman in compensation for his service as interim Chief Executive Officer of the Company and as compensation for his prior service as a director, and 750,000 stock options to a director in compensation for his service in recruiting the Company&#146;s new management team.&nbsp; These stock options have an exercise price of $0.2225 (</font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>the average of the high and low sales price on September 21, 2012) and an intrinsic value as of July 31, 2013 of $-0-.&nbsp; The options vest in 3 equal annual installments of 250,000 commencing on September 21, 2012 and have a term of ten years.&nbsp; </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>&nbsp;As of July 31, 2013, 500,000 options were exercisable with an aggregate intrinsic value of $-0-.&nbsp; These stock options otherwise have the same terms and conditions as options granted under the Company&#146;s 2010 Share Incentive Plan.&nbsp;</font></p><a name=_aciFooter27> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">26</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_28><a name=_aciHeader28> <p style="PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div><a name=_aciHeader28> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>During the nine months ended July 31, 2013, nonqualified stock options to purchase 3,000,000 shares were granted to our outside directors for service rendered to our Company.&nbsp; Of these options, </font></div><a name=_aciHeader28> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>(a)&nbsp; In November 2012, nonqualified stock options to purchase 1,000,000 shares were issued to one of our directors as additional compensation for service in recruiting the Company&#146;s new management team. These options have an exercise price of $0.211 (</font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>the average of the high and low sales price on date of grant) and vest 333,334 shares upon grant and 333,333 shares in two annual installments commencing November 30, 2013.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>(b) In February 2013, nonqualified stock options to purchase 1,000,000 shares were issued to the Chairman of the Board. &nbsp;These stock options have an exercise price of $0.235 (</font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>the average of the high and low sales price on date of grant) and vest 333,334 shares upon grant and 333,333 shares in two annual installments commencing February 15, 2014.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>(c) </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>In March 2013, nonqualified stock options to purchase an aggregate of 1,000,000 shares were granted to the Company&#146;s three outside directors.&nbsp; Each of these stock options have an exercise price of $0.195 (</font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>the average of the high and low sales price on date of grant) and vest in four equal quarterly installments.</font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US> &nbsp;</font><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>As of July 31, 2013, the options to purchase 3,000,000 shares had an intrinsic value of $30,000, and the portion exercisable of 1,166,668 shares had an intrinsic value of approximately $14,000.&nbsp; </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>These options otherwise have the same terms and conditions as options granted under the Company&#146;s 2010 Share Incentive Plan. </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>The following table summarizes information about the above stock options outstanding that were not granted under the 2003 Share Plan or the 2010 Share Plan as of July 31, 2013:</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%" align=center>&nbsp;</div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%" align=center> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=57% colspan=7 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=top><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt" align=center> <p style="MARGIN:0in 0in 0pt" align=center></font></font> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Options Outstanding</font></font></font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=41% colspan=5 style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=center valign=top> <p style="MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Options Exercisable</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=14% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="BORDER-BOTTOM:#000000 1px solid" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Remaining</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Contractual Life</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">(in years)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=4 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Remaining</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Contractual Life </font></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">(in years)</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=14% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Price</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=3 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Weighted</font><br></p><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Average</font><br></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Price</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=14% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Range of</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercise Prices</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Outstanding</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Number</font><br></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Exercisable</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="BORDER-BOTTOM:#000000 1px solid" valign=bottom><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman">&nbsp;</font></td></tr> <tr style=HEIGHT:14.5pt> <td width=14% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=14% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.195- $0.235</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>44,500,000</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>9.16</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.22 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>7,222,224</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=13% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>9.19</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$0.22 </font></p></td></tr></table></div> <p> <p style="MARGIN:0in 0in 10pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%"><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Stock Awards </font></u></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We account for stock awards granted to employees and consultants based on their grant date fair value, in accordance with ASC 718 and ASC 505-50, respectively.&nbsp; During the nine-month periods ended July 31, 2013 and 2012, we issued -0- shares and 6,463,830 shares, respectively, of common stock to certain employees for services rendered, principally in lieu of cash compensation, pursuant to the 2010 Share Plan.&nbsp; We recorded compensation expense for the nine-month periods ended July 31, 2013 and 2012, of approximately $-0- and $861,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 of approximately $-0- and $337,000, respectively, for the shares of common stock issued to employees.&nbsp; In addition, during the nine-month periods ended July 31, 2013 and 2012, we issued 665,000 shares and 304,910 shares, respectively, of common stock to consultants for services rendered pursuant to the 2010 Share Plan.&nbsp; We recorded consulting expense for the nine-month periods ended July 31, 2013 and 2012 of <font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>approximately $168,000 and $40,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 of approximately $117,000 and $-0-, respectively, for the shares of common stock issued to consultants.&nbsp; </font></font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><a name=_aciFooter28> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">27</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_29> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader29> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader29> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader29> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>FAIR VALUE MEASUREMENTS</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>ASC 820 &#147;Fair Value Measurements and Disclosures&#148; (&#147;ASC 820&#148;) </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements.&nbsp; In accordance with ASC 820, we have categorized our financial assets, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below.&nbsp; If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Financial assets and liabilities recorded in the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Level 1 - Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market which we have the ability to access at the measurement date.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Level 2 - Financial assets and liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Level 3 &#150; Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.&nbsp; These inputs reflect management&#146;s own assumptions about the assumptions a market participant would use in pricing the asset and liabilities.&nbsp; We do not currently have any Level 3 financial assets.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of July 31, 2013:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>&nbsp;&nbsp;</font></p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 1</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 2</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 3</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Total</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Money market funds &#150; Cash and cash equivalents</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>982,031 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>982,031 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Videocon Industries Limited global depository receipts</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,269,141 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,269,141 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=50% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total financial assets</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,251,172 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,251,172 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=50% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr></table></div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter29> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">28</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_30> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader30> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader30> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader30> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of October 31, 2012:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 1</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 2</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 3</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=11% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Total</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt" /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Money market funds &#150; Cash and cash equivalents</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>339,693 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>339,693 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>U.S. government securities - Cash and cash equivalents</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>500,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>500,000 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=50% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Videocon Industries Limited global depository receipts</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,728,367 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left>&nbsp;</p></td> <td width=9% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,728,367 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=50% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total financial assets</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,068,060 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>500,000 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" align=left valign=bottom> <p style="MARGIN:0in 0in 0pt" align=left><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=9% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,568,060 </font></p></td></tr></table></div></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We did not have any financial liabilities that were required to be measured at fair value on a recurring basis as of October 31, 2012.&nbsp; The following table presents the hierarchy for our financial liabilities measured at fair value on a recurring basis as of July 31, 2013:</font></p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=21% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=14% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 1</font></font></font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=14% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 2</font></font></font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=15% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Level 3</font></font></font></p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=15% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Total</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=21% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt" /></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=11% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=11% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=7% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td></tr> <tr style=HEIGHT:15.25pt> <td width=21% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Derivative liability</font></p></td> <td width=3% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=11% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=11% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>700,000 </font></p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=12% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>700,000 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=21% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=11% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=7% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=3% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=12% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr></table></div> <div align=center>&nbsp;</div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth a summary of the changes in the fair value of the Company&#146;s Level 3 financial liabilities that are measured at fair value on a recurring basis:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:43.55pt> <td width=83% style="HEIGHT:43.55pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:43.55pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>For the Nine Months </font></p></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal">Ending July 31, 2013</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=83% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Beginning balance</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>- </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=83% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Aggregate fair value of bifurcated conversion feature issued</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,180,000 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=83% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Change in fair value of bifurcated conversion feature</font></p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=15% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(480,000)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Ending balance</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>700,000 </font></p></td></tr></table></div> <div align=center>&nbsp;</div></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The bifurcated conversion feature is accounted for as a derivative liability and is measured at fair value using a Monte Carlo simulation model and is classified within Level 3 of the valuation hierarchy.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The significant assumptions and valuation methods that the Company used to determine fair value and the change in fair value of the Company&#146;s derivative financial instrument are discussed in Note 2 (Convertible Debentures). The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company&#146;s Principal Financial Officer with support from the Company&#146;s consultants.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter30> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">29</font></font></p></td></tr></table></div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_31> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader31> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader31> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader31> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 6pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In accordance with the provisions of ASC 815, the Company presents the bifurcated conversion feature liability at fair value in its condensed consolidated balance sheet, with the corresponding changes in fair value, if any, recorded in the Company&#146;s condensed statements of operations for the applicable reporting periods.&nbsp; As disclosed in Note 2, the Company computed the fair value of the derivative liability at the date of issuance and the reporting date of July 31, 2013 using the Monte Carlo simulation model.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 6pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company developed the assumptions that were used as follows: The stock price on the valuation date of the Company&#146;s common stock was derived from the trading history of the Company&#146;s common stock.&nbsp; The stock premium for liquidity was computed as the premium required to adjust for the effect of the additional time that it would be expected to take for the market to absorb the converted shares and warrant exercises, given the Company&#146;s current trading volume.&nbsp; The term represents the remaining contractual term of the derivative; the volatility rate was developed based on analysis of the Company&#146;s historical volatility</font><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>;&nbsp;</font></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> the risk free interest rate was obtained from publicly available US Treasury yield curve rates; the dividend yield is zero because the Company has not paid dividends and does not expect to pay dividends in the foreseeable future.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Our non-financial assets that are measured on a non-recurring basis include our property and equipment which are measured using fair value techniques whenever events or changes in circumstances indicate a condition of impairment exists.&nbsp; The estimated fair value of accounts payable and accrued liabilities approximates their individual carrying amounts due to the short term nature of these measurements.&nbsp; It is impractical to determine the fair value of the loan receivable and loan payable to the related party given the nature of these loans.&nbsp; The convertible debentures have been reported net of the discount for the beneficial conversion features and related warrants.&nbsp; Cash and cash equivalents are stated at carrying value which approximates fair value. &nbsp;These assets and liabilities were not presented in the preceding table.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>INVESTMENTS&nbsp;</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Short-term Investments </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>At October 31, 2012, we had marketable securities consisting of </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>certificates of deposit </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>of $500,000, which were classified as </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>"available-for-sale securities" and reported at fair value.&nbsp; Upon maturity, $500,000 was deposited in the Company&#146;s money market account.</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Investment in Videocon</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Our investment in Videocon is classified as an "available-for-sale security" and reported at fair value, with unrealized gains and losses excluded from operations and reported as a component of accumulated other comprehensive income (loss) in shareholders&#146; deficiency.&nbsp; The original cost basis of $16,200,000 was determined using the specific identification method.&nbsp; The fair value of the Videocon GDRs is based on the price on the Luxembourg Stock Exchange, which price is based on the underlying price of </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Videocon&#146;s equity shares which are traded on stock exchanges in India with prices quoted in rupees.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter31> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">30</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_32> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader32> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader32> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader32> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>ASC 320 &#147;Investments-Debt and Equity Securities&#148; (&#147;ASC 320&#148;) and SEC guidance on other than temporary impairments of certain investments in equity securities requires an evaluation to determine if the decline in fair value of an investment is either temporary or other than temporary.&nbsp; Unless evidence exists to support a realizable value equal to or greater than the carrying cost of the investment, other than temporary impairment should be recorded.&nbsp; At each reporting period we assess our investment in Videocon to determine if a decline that is other than temporary has occurred.&nbsp; As of July 31, 2013 a write-down of the investment, on a cumulative basis, of approximately $10,818,000 had been recorded, which established a new cost basis of approximately $5,382,000.&nbsp; The fair value of investment in Videocon as of July 31, 2013 and October 31, 2012, and the unrealized loss for the nine month period ended July 31, 2013, are as follows:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% colspan=2 style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="MARGIN:0in 0in 0pt"></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Investment in Videocon</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=83% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Fair Value as of October 31, 2012</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>4,728,367 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=83% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Reversal of unrealized loss at October 31, 2012</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>653,684 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Unrealized loss</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>(1,112,910)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=83% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Fair Value as of July 31, 2013</font></p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:#000000 3px double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=15% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0.04in 0pt 0in" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman" color=#000000>4,269,141 </font></p></td></tr></table></div></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Investment in ZQX Advisors, LLC</font></u></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In August 2009, we entered into an Engagement Agreement with ZQX Advisors, LLC (&#147;ZQX&#148;) to assist us in seeking business opportunities and licenses for our electrophoretic display technology.&nbsp; Concurrently with entering into the Engagement Agreement, we acquired a 19.5% ownership interest in ZQX.&nbsp; On January 21, 2013, we terminated the Engagement Agreement with ZQX, but currently retain our 19.5% interest in ZQX. We have classified our interest in ZQX of approximately $48,000 as a reduction of additional paid-in capital within shareholders&#146; deficiency since this investment in ZQX consists entirely of our equity securities.&nbsp; During the three months ended July 31, 2013, we received approximately $24,000 representing our share of the proceeds from the sale of CopyTele common stock by ZQX.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>6.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;NET LOSS PER SHARE OF COMMON STOCK </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In accordance with ASC 260, &#147;Earnings Per Share&#148;, basic net loss per common share (&#147;Basic EPS&#148;) is computed by dividing net loss by the weighted average number of common shares outstanding.&nbsp; Diluted net loss per common share (&#147;Diluted EPS&#148;) is computed by dividing net loss by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding.&nbsp; Diluted EPS for all periods presented is the same as Basic EPS, as the inclusion of the effect of common share equivalents then outstanding would be anti-dilutive.&nbsp; For this reason, excluded from the calculation of Diluted EPS for the nine and three-month periods ended </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>July 31, 2013 and 2012, were stock options to purchase 63,182,845 and 17,340,045 shares respectively, and warrants to purchase 9,878,759 and 7,500,000 shares, respectively and debentures convertible into 9,600,480 shares and -0- shares respectively.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter32> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">31</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp;<a name=page_33> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader33> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 40.5pt; TEXT-INDENT:-40.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>7.</font><font style=FONT-SIZE:7pt face="times new roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>EFFECT OF RECENTLY ADOPTED AND ISSUED PRONOUNCEMENTS</font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In December 2011, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Accounting Standards Update 2011-12 (&#147;ASU 2011-12&#148;), Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No.&nbsp;2011-05. &nbsp;This amendment defers the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated other comprehensive income into net income. ASU 2011-12 is effective at the same time as Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (&#147;ASU 2011-05&#148;), so that entities will not be required to comply with the presentation requirements in ASU 2011-05 that this ASU 2011-12 is deferring. ASUs 2011-12 and 2011-05 are effective for fiscal years, and interim periods within those years, beginning after December&nbsp;15, 2011.&nbsp; The Company adopted ASUs 2011-05 and 2011-12 on November&nbsp;1, 2012 and has presented comprehensive income using the one-statement approach.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income in financial statements.&nbsp; However, ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component.&nbsp; In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income but only if amounts reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. &nbsp;For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional details about these amounts.&nbsp; ASU 2013-02 is effective in the second quarter of fiscal year 2013 and did not have a material effect on the Company&#146;s consolidated financial statements.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In October 2012, the FASB issued Accounting Standards Update 2012-04 (&#147;ASU 2012-04&#148;), Technical Corrections and Improvements. The amendments in this update cover a wide range of topics and include technical corrections and improvements to the Accounting Standards Codification. The amendments in ASU 2012-04 will be effective for interim and annual reporting periods beginning after December&nbsp;15, 2012. The Company adopted ASU 2012-04 on February&nbsp;1, 2013. The adoption of ASU 2012-04 did not have a material impact on the Company&#146;s consolidated financial position, results of operations or cash flows. &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter33> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">32</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_34> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader34> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader34> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader34> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In October 2012, the FASB issued Accounting Standards Update 2012-03 (&#147;ASU 2012-03&#148;), Technical Amendments and Corrections to SEC Sections.&nbsp; ASU 2012-03 is issued to amend certain SEC paragraphs in the FASB Accounting Standards Codification, including Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin, Technical Amendments, and Corrections Related to FASB Accounting Codification. The amendments in ASU 2012-03 will be effective for interim and annual reporting periods beginning after December&nbsp;15, 2012.&nbsp; The Company adopted ASU 2012-03 on February&nbsp;1, 2013.&nbsp; The adoption of ASU 2012-03 did not have a material impact on the Company&#146;s consolidated financial position, results of operations or cash flows. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>INCOME TAXES </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>We file Federal and New York State income tax returns.&nbsp; Due to net operating losses, the statute of limitations remains open since the fiscal year ended October 31, 1997.&nbsp;&nbsp; We account for interest and penalties related to income tax matters in selling, general and administrative expenses. There are no unrecognized income tax benefits as of July 31, 2013 and October 31, 2012.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>CONTINGENCES&nbsp;</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On January 28, 2013, we filed a lawsuit in the United States District Court for the Northern District of California against AUO and E Ink in connection with the AUO License Agreements, alleging breach of contract and other charges, and are seeking compensatory, punitive, and treble damages.&nbsp;&nbsp; In addition to numerous material breaches by AUO of the AUO License Agreements, the Complaint alleges that AUO and E Ink conspired to obtain rights to CopyTele&#146;s</font><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> </font></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>EPD and nFED technology.&nbsp; CopyTele alleges that such activities violated several State and Federal anti-trust and unfair competition statutes for which punitive and/or treble damages are applicable.&nbsp; We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Commencing in the fourth quarter of fiscal year 2012 the primary operations of the Company involved patent licensing in connection with the unauthorized use of patented technologies and patent enforcement.&nbsp;&nbsp; In connection with any of our patent enforcement actions, it is possible that a defendant may request and/or a court may rule that we have violated statutory authority, regulatory authority, federal rules, local court rules, or governing standards relating to the substantive or procedural aspects of such enforcement actions.&nbsp;&nbsp;In such event, a court may issue monetary sanctions against us or award attorney's fees and/or expenses to a defendant(s), which could be material.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter34> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">33</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_35> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader35> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader35> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader35> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader35> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=Item2>Item 2.&nbsp; </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Management's Discussion and Analysis of Financial Condition and Results of Operations.</font></u></b><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp; &nbsp;</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>GENERAL</font></u></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As used herein, &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; the &#147;Company,&#148; &#147;CopyTele&#148; or &#147;CTI&#148; refers to CopyTele, Inc.&nbsp; Our principal operations include the development, acquisition, licensing, and enforcement of patented technologies. While in the past, the primary operations of the Company involved licensing in connection with the development of patented technologies, the primary operations of the Company are now patent monetization, and patent assertion, in connection with the unauthorized use of patented technologies that are either owned or controlled by the Company or one of its wholly owned subsidiaries.&nbsp; As part of our patent assertion activities in the ordinary course of business, the Company, or our wholly owned subsidiaries, will likely initiate patent infringement lawsuits, and engage in patent infringement litigation.&nbsp; In addition to continuing to mine and monetize our existing patents, our wholly owned subsidiary, CTI Patent Acquisition Corporation will continue to acquire patents and the exclusive rights to exclusively license and enforce patents from third parties.&nbsp; The changes in the primary operations of the Company included elimination of product development efforts, accordingly, we are no longer incurring research and development expenses. Due to arrangements previously entered into by the Company, certain of our patents contain encumbrances which may negatively impact our patent monetization and patent assertion activities. Where we are able, we will take the steps necessary to remove any encumbrances that may inhibit our patent monetization and patent assertion efforts. We have obtained and will continue to obtain the rights to license and enforce additional patents from third parties, and when necessary, will assist such parties in the further development of their patent portfolios through the filing of additional patent applications. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the second quarter of fiscal year 2013, CopyTele, through its wholly owned subsidiary, CTI Patent Acquisition Corporation, acquired the exclusive rights to license and enforce two patent portfolios relating to (i) loyalty awards programs commonly provided by airlines, credit card companies, hotels, retailers, casinos, and others, and (ii) window frames with integrated J-Channels, commonly used in manufactured housing and replacement windows.&nbsp; The Loyalty Conversion Systems patent portfolio covers the conversion of non-negotiable, loyalty awards points into negotiable funds used to purchase goods and services from third parties, and the conversion of awards points into points and awards provided by other loyalty program providers.&nbsp; </font><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt" face="Times New Roman" lang=EN-US>The J-Channel Window Frame Construction patent portfolio covers window frames that integrate a feature commonly known in the industry as a &#147;J-channel&#148; or &#147;J-rail,&#148; resulting in easier and faster assembly and installation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LETTER-SPACING:-0.15pt" face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Patent Monetization and Patent Assertion</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Patent monetization is the generation of revenue and proceeds from patents and patented technologies (&#147;Patent Monetization&#148;).&nbsp; Patent assertion is a specialized type of Patent Monetization where a patent owner, or a representative of the patent owner, seeks to </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>prohibit or collect royalties from the unauthorized manufacture, sale, and use of the owner&#146;s patented invention (&#147;Patent Assertion&#148;). &nbsp;CTI&#146;s new business model is Patent Monetization and Patent Assertion.&nbsp; We currently own or control 6 patent portfolios which we have identified for patent monetization: ePaper&#174; Electrophoretic Display (&#147;EPD&#148;); Nano Field Emission Display (&#147;nFED&#148;); Key Based Web Conferencing Encryption (&#147;KB Encryption&#148;); J-Channel Window Frame Construction (&#147;J-Channel&#148;); &nbsp;Loyalty Conversion Systems (&#147;LCS&#148;); and Micro Electro Mechanical Systems Display (&#147;MEMS&#148;).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter35> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">34</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_36> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader36> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader36> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader36> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Key Based Web Conferencing Encryption </font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 10pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The KB Encryption patent portfolio covers the generation and management of encryption keys used for securing audio/video communications, e-mails, text messages, data, voice and faxes. &nbsp;This type of encryption technology is commonly used to encrypt web-based conferencing, email for regulatory compliance purposes, and personal information such as contracts.&nbsp; KB Encryption can also be used for protecting sensitive cellular, satellite, and local area network communications. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>ePaper&#174; Electrophoretic Display</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The ePaper patent portfolio covers core electrophoretic technology that is used in the worlds&#146; most popular eReader devices such as the Nook and the Kindle. &nbsp;The ePaper patents cover the underlying chemistry that is used to manufacture both the particles and the suspension, two of the key elements that are fundamental to the generation of the black and white eReader display. &nbsp;CTI&#146;s ePaper patents also cover the manufacturing, assembly, and physical structure of the display unit itself, as well as the electronics and internal operation of the device.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Nano Field Emission Display</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The nFED patent portfolio covers </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN>a new type of flat panel display consisting of low voltage color phosphors, specially coated carbon nanotubes, nano materials to generate secondary electrons, and ionized noble gas, resulting in a bright, sharp, high contrast color image. &nbsp;This emerging technology could result in a flat panel display utilizing less power, with better picture quality and lower manufacturing costs than is currently found in the display industry.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Micro Electro Mechanical Systems Display</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0pt 0pt 0in; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The MEMS patent portfolio covers vanadium dioxide coated pixels that electrically modulate light at extremely high speeds to form an image, as well as the use of electrostatic force to move pixel sized membranes that create a color image. These are emerging, low voltage, display technologies with numerous potential commercial applications.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter36> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">35</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_37><a name=_aciHeader37> <p style="PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div><a name=_aciHeader37> <p style="PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Loyalty Conversion Systems</font></b></p><a name=_aciHeader37> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 10pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>The LCS patent portfolio covers coalition loyalty awards programs commonly provided by airlines, credit card companies, hotels, retailers, casinos, and others. &nbsp;The portfolio covers the electronic conversion of non-negotiable, loyalty awards points into negotiable funds used to purchase goods and services from third parties, as well as covering the electronic&nbsp;conversions of awards points into points and awards provided by other loyalty program providers. </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>J-Channel Window Frame Construction</font></b></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; BACKGROUND:white" face="Times New Roman" lang=EN-US>The J-Channel patent portfolio covers window frames commonly used in manufactured housing and replacement windows. &nbsp;The portfolio covers window frames that integrate a feature commonly known in the industry as a "J-channel" or "J-rail," resulting in easier and faster assembly and installation. </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Patent Monetization and Patent Assertion Activities</font></b></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On January 28, 2013, CTI initiated a patent infringement lawsuit in the United States District Court for the Northern District of California against E Ink Corporation (&#147;E INK&#148;), regarding certain patents owned by CTI pertaining to CTI&#146;s ePaper&#174; Electrophoretic Display technology.&nbsp; CTI alleges that E Ink has infringed and continues to infringe such patents in connection with the manufacture, sale, use, and importation of electrophoretic displays. &nbsp;On January 28, 2013, CTI filed a separate lawsuit against AU Optronics Corp. (&#147;AUO&#148;) and E Ink, the AUO/E Ink Lawsuit (as defined below). In June of 2013, CTI and AUO greed to arbitrate CTI&#146;s charges in the AUO/E Ink Lawsuit.&nbsp; The Court also ordered E Ink to participate in the arbitration, for purposes of discovery. &nbsp;Because issues in the AUO/E Ink arbitration need to be resolved before the patent infringement case can proceed against E Ink, the Court dismissed the patent infringement case, without prejudice, meaning that CTI can re-file the patent infringement lawsuit, if necessary, following the arbitration.&nbsp; We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On May 1, 2013, CTI&#146;s wholly owned subsidiary, Secure Web Conference Corporation, initiated a patent infringement lawsuit in the United States District Court for the Eastern District of New York against Microsoft Corporation, with respect to encryption technology utilized by Microsoft&#146;s SKYPE video conferencing service.&nbsp; On July 8, 2013, Secure Web Conference Corporation initiated similar lawsuits in the United States District Court for the Eastern District of New York against Citrix Systems and Logitech International.&nbsp; We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On August 7, 2013, CTI&#146;s wholly owned subsidiary, J-Channel Industries Corporation, filed 8 separate patent infringement lawsuits in the United States District Court for the Eastern District of Tennessee, against Lowe&#146;s Companies, Clayton Homes, Pella Corporation, Jeld-Wen, Atrium Windows and Doors, Ply Gem Industries, RGF Industries, Tafco Corporation, Kinro Manufacturing, and Elixir Industries, all in connection with our patented J-Channel Window Frame Construction technology.</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter37> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">36</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_38> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader38> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader38> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader38> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; BACKGROUND:white" face="Times New Roman" color=black lang=EN-US>On August 20, 2013, </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>CTI&#146;s wholly owned subsidiary,</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> </font><font style="FONT-SIZE:12pt; BACKGROUND:white" face="Times New Roman" color=black lang=EN-US>Loyalty Conversion System Corporation, filed 10 separate patent infringement lawsuits in the United States District Court for the Eastern District of Texas, against Alaska Airlines, American Airlines, Delta Airlines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, United Airlines, and U.S. Airways, all in connection with our Loyalty Conversion Systems patent portfolio. </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Prior Agreements</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>AU Optronics Corp.</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In May 2011, we entered into an Exclusive License Agreement (the &#147;EPD License Agreement&#148;) and a License Agreement (the &#147;Nano Display License Agreement&#148;) with AUO (together the &#147;AUO License Agreements&#148;).&nbsp; Under the EPD License Agreement, we provided AUO with an exclusive, non-transferable, worldwide license of our E-Paper<sup>&#174;</sup> Electrophoretic Display patents and technology, in connection with AUO jointly developing products with CTI.&nbsp; Under the Nano Display License Agreement, we provided AUO with a non-exclusive, non-transferable, worldwide license of our nFED Display patents and technology, in connection with AUO jointly developing products with CTI.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On January 28, 2013, we terminated the AUO License Agreements due to numerous alleged material and continual breaches of the agreements by AUO.&nbsp; On January 28, 2013, we also filed a lawsuit in the United States District Court for the Northern District of California against AUO and E Ink in connection with the AUO License Agreements, alleging breach of contract, breach of the implied covenant of good faith and fair dealing, fraudulent inducement, unjust enrichment, unfair business practices, attempted monopolization, and other charges, and we are seeking compensatory, punitive, and treble damages (the &#147;AUO/E Ink Lawsuit&#148;).&nbsp; In June of 2013, CTI and AUO agreed to arbitrate CTI&#146;s charges, which we believe should result in a faster and more efficient adjudication. A copy of the Complaint filed in the AUO/E Ink Lawsuit is available at </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>www.CopyTele.com.</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp; For more details on the AUO/E Ink Lawsuit, please see &#147;Item 3, Legal Proceedings&#148; </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Videocon Industries Limited</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In November 2007, we entered into a Technology License Agreement (as amended in May 2008), (the &#147;Videocon License Agreement&#148;) with Videocon.&nbsp; Under the Videocon License Agreement, we provided Videocon with a non-transferable, worldwide license of our nFED technology.&nbsp; We are not presently involved in development efforts with Videocon and it is not anticipated that such efforts will be resumed in the future.&nbsp; We have entered into discussions with Videocon regarding the disposition of the Videocon License Agreement.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter38> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">37</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_39> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader39> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader39> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader39> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>At the same time we entered into the Videocon License Agreement in November 2007, we also entered into a Share Subscription Agreement (the &#147;Share Subscription Agreement&#148;) with Mars Overseas Limited, an affiliate of Videocon (&#147;Mars Overseas&#148;).&nbsp; Under the Share Subscription Agreement, Mars Overseas purchased 20,000,000 unregistered shares of our common stock (the &#147;CopyTele Shares&#148;) from us for an aggregate purchase price of $16,200,000.&nbsp; Also in November 2007, our wholly-owned subsidiary, CopyTele International Ltd. (&#147;CopyTele International&#148;), entered into a GDR Purchase Agreement with Global EPC Ventures Limited (&#147;Global&#148;), for CopyTele International to purchase from Global </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>1,495,845 global depository receipts of Videocon (the &#147;Videocon GDRs&#148;) for an aggregate purchase price of $16,200,000.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>For the purpose of effecting a lock up of the Videocon GDRs and CopyTele Shares (collectively, the &#147;Securities&#148;) for a period of seven years, and therefore restricting both parties from selling or transferring the Securities during such period, CopyTele International and Mars Overseas entered into two Loan and Pledge Agreements in November 2007.&nbsp; The Videocon GDRs are to be held as security for a loan in the principal amount of $5,000,000 from Mars Overseas to CopyTele International, and the CopyTele Shares are similarly held as security for a loan in the principal amount of $5,000,000 from CopyTele International to Mars Overseas.&nbsp; The loans are for a period of seven years, do not bear interest, and prepayment of the loans will not release the lien on the Securities prior to end of the seven year period.&nbsp; The loan agreements provide for customary events of default, which may result in forfeiture of the Securities by the defaulting party, and also provide for the transfer to the respective parties, free and clear of any encumbrances under the agreements, any dividends, distributions, rights or other proceeds or benefits in respect of the Securities.&nbsp; The loan receivable from Mars Overseas is classified as a contra-equity under shareholders&#146; deficiency in the accompanying condensed consolidated balance sheet, because the loan receivable is secured by the CopyTele Shares and the Share Subscription Agreement and Loan and Pledge Agreement were entered into concurrently.&nbsp; We have entered into discussions with Videocon regarding the disposition of the Subscription Agreement, GDR Purchase Agreement, and Loan and Pledge Agreements.&nbsp; The outcome of these discussions and the disposition of the related assets and liabilities may have a material effect on our financial statements.&nbsp; We cannot presently estimate the timing or impact of any such resolution.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In reviewing Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, you should refer to our condensed consolidated financial statements and the notes related thereto.</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>CRITICAL ACCOUNTING POLICES </font></u></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Our </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>condensed&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> consolidated financial statements are prepared in conformity with accounting principles generally </font><font style=FONT-SIZE:12pt color=black lang=EN-US>accepted in the United States of America.&nbsp; As such, we are required to make certain estimates,</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> judgments and assumptions that management believes are reasonable based upon the information available.&nbsp; These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>dates of the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>condensed&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter39> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">38</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_40> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>We believe the following critical accounting polices affect the more significant judgments and estimates used in the preparation of our </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>condensed&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> consolidated financial statements.&nbsp; For additional discussion on the application of these and other accounting policies, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Revenue Recognition</font></u></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed pursuant to the terms of the arrangement, (iii) amounts are fixed or determinable, and (iv) the collectability of amounts is reasonably assured.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We have assessed the revenue guidance of Accounting Standards Codification (&#147;ASC&#148;) 605-25 &#147;Multiple-Element Arrangements&#148; (&#147;ASC 605-25&#148;) to determine whether </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>multiple deliverables in our arrangements with AUO represent separate units of accounting</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp;Under the AUO License Agreements</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>, we</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> received initial license fees of $3 million, of aggregate license fees of up to $10 million.&nbsp;The additional $7 million in license fees were payable upon completion of certain conditions for the respective technologies.&nbsp;We have determined that the transfer of the licensed patents and technology and the effort involved in completion of the conditions for the respective technologies represent a single unit of accounting for each technology.&nbsp;Accordingly, using a proportional performance method, during the third quarter of fiscal year 2011 we began recognizing the $3 million initial license fees over the estimated periods that we expected to complete the conditions for the respective </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>technologies. We have not recognized any portion of the $7 million of additional license fees as either deferred revenue or revenue as it is considered contingent revenue. &nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The AUO License Agreements also provided for the basis for royalty payments on future production, if any, by AUO to CopyTele, which we have determined represent separate units of accounting.&nbsp;We have not recognized any royalty income under the AUO License Agreements.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Prior to initiation of the AUO/E Ink Lawsuit, at each reporting period</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> we assessed the progress in completing our performance obligations under the AUO License Agreements and recognized license fee revenue over the remaining estimated period that we expected to complete the conditions for the respective technologies.</font><font style=FONT-SIZE:12pt face="Times New Roman" color=red lang=EN-US>&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Commencing in the fourth quarter of fiscal year 2012, revenue recognition under the AUO License Agreements was suspended pending resolution of the AUO/E Ink Lawsuit.&nbsp; For more details on the AUO/E Ink Lawsuit, please see Note 9, &#147;Contingencies&#148; to the condensed consolidated financial statements.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the nine-month periods ended July 31, 2013 and 2012 we recognized approximately $-0- and $940,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 $-0- and $247,000, respectively, of license fee revenue from AUO.&nbsp;License fee payments received from AUO which are in excess of the amounts recognized </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>as revenue (approximately $1,187,000 as of July 31, 2013) are recorded as non-refundable deferred revenue on the accompanying consolidated balance sheet.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter40> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">39</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp;<a name=page_41> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Investment Securities</font></u></b></p> <p style="PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Our investment securities are classified as available-for-sale and reported at fair value.&nbsp;Unrealized gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a component of accumulated other comprehensive income (loss) until realized.&nbsp; Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis.&nbsp;Dividend and interest income are recognized when earned.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We monitor the value of our investments for indicators of impairment, including changes in market conditions and the operating results of the underlying investment that may result in the inability to recover the carrying value of the investment.&nbsp; During fiscal year 2012 we discontinued utilizing Volga&#150;Svet, Ltd., a Russian corporation (&#147;Volga&#148;), for contract research and development work.&nbsp; In evaluating our investment in Volga at October 31, 2012, we determined that the discontinuation of funding from CTI and lack of available financial information from Volga has impaired the value of our investment in Volga.&nbsp; </font></p> <h6 style="PADDING-LEFT:0%; MARGIN:12pt 0in 3pt; PADDING-RIGHT:0%"><b><u><font style="FONT-SIZE:12pt; FONT-STYLE:normal" face="Times New Roman" color=black>Stock-Based Compensation </font></u></b></h6> <p style="PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We account for stock options granted to employees and directors using the accounting guidance in ASC 718.&nbsp; We recognize compensation expense for stock option awards over the requisite or implied service period of the grant.&nbsp; We recorded stock-based compensation expense, related to stock options granted to employees and directors, of approximately $2,118,000 and $111,000 during the nine-month periods ended July 31, 2013 and 2012, respectively and during the three-month periods ended July 31, 2013 and 2012 of approximately $1,091,000 and $-0-, respectively.&nbsp; We account for stock options granted to consultants using the accounting guidance under ASC 505-50. &nbsp;We recognized stock-based compensation expense for stock options granted to non-employee consultants during the nine-month periods ended July 31, 2013 and 2012, of approximately $574,000 and $-0-, respectively and for the three-month periods ended July 31, 2013 and 2012, of approximately $147,000 and $-0-, respectively&nbsp; See Note 3 to the condensed consolidated financial statements for additional information.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We account for stock awards granted to employees and consultants based on their grant date fair value, in accordance with ASC 718 and ASC 505-50, respectively.&nbsp; We recorded stock-based compensation expense for the nine-month periods ended July 31, 2013 and 2012, of approximately $-0- and $861,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 of approximately $-0- and $337,000, respectively, for the shares of common stock issued to employees.&nbsp; In addition, we recorded consulting expense for the nine-month periods ended July 31, 2013 and 2012 of approximately </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>$168,000 and $40,000, respectively, and for the three-month periods ended July 31, 2013 and 2012 of approximately $117,000 and $-0-, respectively, for the shares of common stock issued to consultants.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><a name=_aciFooter41> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">40</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_42> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Determining the appropriate fair value model and calculating the fair value of stock-based awards requires judgment, including estimating stock price volatility, forfeiture rates and expected term.&nbsp; If factors change and we employ different assumptions in the application of ASC 718 and ASC 505-50 in future periods, the compensation expense that we record may differ significantly from what we have recorded in the current period.&nbsp; See Note 3 to the condensed consolidated financial statements for additional information.</font></p> <h6 style="PADDING-LEFT:0%; MARGIN:12pt 0in 3pt; PADDING-RIGHT:0%"><b><u><font style="FONT-SIZE:12pt; FONT-STYLE:normal" face="Times New Roman" color=black>Convertible Debentures </font></u></b></h6> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Company accounts for hybrid contracts that feature conversion options in accordance with applicable generally accepted accounting principles (&#147;GAAP&#148;).&nbsp; ASC &nbsp;815 &#147;Derivatives and Hedging Activities,&#148; (&#147;ASC 815&#148;) requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria includes circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b)&nbsp;the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c)&nbsp;a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion options that contain variable settlement features such as provisions to adjust the conversion price upon subsequent issuances of equity or equity linked securities at exercise prices more favorable than that featured in the hybrid contract generally result in their bifurcation from the host instrument.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company accounts for convertible instruments, when the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, in accordance with ASC 470-20 &#147;Debt with Conversion and Other Options&#148; (&#147;ASC 470-20&#148;). Under ASC 470-20 the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. The Company accounts for convertible instruments (when the Company has determined that the embedded conversion options should be bifurcated from their host instruments) in accordance with ASC 815.&nbsp;&nbsp;Under ASC 815, a portion of the proceeds received upon the issuance of the hybrid contract are allocated to the fair value of the derivative. The derivative is subsequently marked to market at each reporting date based on current fair value, with the changes in fair value reported in results of operations.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%">&nbsp;</p><a name=_aciFooter42> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">41</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_43> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader43> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader43> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader43> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The conversion feature of the convertible debenture issued on January 25, 2013 qualified as an embedded derivative instrument and was bifurcated from the host convertible debenture.&nbsp; Accordingly, this instrument has been classified as a derivative liability in the accompanying condensed consolidated balance sheet as of July 31, 2013. &nbsp;Derivative liabilities are initially recorded at fair value and are then re-valued at each reporting date, with changes in fair value recognized in earnings during the reporting period.</font></p> <h4 style="PAGE-BREAK-AFTER:auto; MARGIN:12pt 0in 3pt"><b><u><font style=FONT-SIZE:12pt face="times new roman" color=black>RESULTS OF OPERATIONS</font></u></b></h4> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In light of the change in our primary operations to Patent Monetization and Patent Assertion from research, development and licensing, the comparison of our results of operations may have limited future value. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>RESULTS OF OPERATIONS</font></u></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0pt 0pt 0in"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Nine months ended July 31, 2013 compared with nine months ended July 31, 2012</font></u></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Net Revenue</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Net revenue decreased by approximately $945,000 in the nine months ended July 31, 2013, to approximately $2,000, as compared to approximately $947,000 in the comparable prior-year period.&nbsp; Revenue during the prior period was principally from display technology license fees related to the AUO License Agreements of approximately $940,000.&nbsp; We did not record revenue from display technology license fees during the comparable current-year period.&nbsp; Revenue recognition of license fees has been suspended pending resolution of the AUO/E Ink Lawsuit. See &#147;- General&#148; above in this Item 2.&nbsp; Revenue from sales of encryption products decreased by approximately $5,000 in the nine months ended July 31, 2013, to approximately $2,000, as compared to approximately $7,000 in the comparable prior-year period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp; &nbsp;</font></p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Cost of Encryption Products Sold</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The cost of encryption products sold increased by approximately $25,000 in the nine months ended July 31, 2013, to approximately $27,000, as compared to approximately $2,000 in the comparable prior-year period.&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>During the nine months ended July 31, 2013 we wrote-off our remaining inventory of encryption products of approximately $26,000.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Research and Development Expenses </font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We discontinued all research and development activity during the fourth quarter of fiscal year 2012.&nbsp; Accordingly, research and development expenses have decreased to $-0- in the nine months ended July 31, 2013 from approximately $1,712,000 during the prior year period. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter43> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">42</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_44> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader44> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader44> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader44> <div>&nbsp;</div> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Selling, General and Administrative Expenses</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Selling, general and administrative expenses increased by approximately $4,476,000 to approximately $6,117,000 in the nine months ended July 31, 2013, from approximately $1,641,000 in the comparable prior-year period.&nbsp; The increase in the current period reflected the effect of discontinuing research and development activities in the fourth quarter of fiscal year 2012, including the discontinuation of allocating certain overhead cost to research and development expense.&nbsp; The increase in selling, general and administrative expenses was principally due to an increase in employee stock option expense of approximately $2,048,000, an increase in consultant stock option expense of approximately $574,000, an increase in legal and accounting fees of approximately $449,000, an increase in shareholder relations expense of approximately $609,000, an increase in rent expense of approximately $220,000, and an increase in employee compensation and related costs, other than stock option expense, of approximately $262,000.&nbsp; D</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>uring the first quarter of fiscal 2013 we began to vacate and return a substantial portion of our facilities to the landlord for possible re-letting and recorded an expense of approximately $186,000 related to future rentals of unused facilities.&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The additional legal and accounting fees and shareholder relations expense are related to the Company&#146;s restructuring, which commenced in the fourth quarter of the fiscal year ended October 31, 2012, filing a registration statement with the SEC and the lawsuit filed against AUO and E Ink in January 2013. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Change in fair value of derivative liability</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The&nbsp;gain recorded from the change in fair value of derivative liability increased to approximately $315,000 in the nine months ended July 31, 2013, compared to $-0- in the comparable prior-year period.</font><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> &nbsp;</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Loss on extinguishment of debt</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Loss on extinguishment of debt&nbsp;aggregated approximately $344,000 in the nine months ended July 31, 2013, compared to $-0- in the comparable prior-year period.</font><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> &nbsp;</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest Expense</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest expense increased to approximately $983,000 in the nine month period ended July 31, 2013 from $-0- in the prior year period, due to interest expense and amortization of debt discount recorded in connection with the convertible debentures issued September 2012 and January 2013.&nbsp; The convertible debentures due September 2016 and accrued interest were converted into shares of common stock during the nine-month period ended July 31, 2013.&nbsp; The conversion of the debentures resulted in a charge to interest expense of approximately $717,000 during the second quarter of fiscal 2013.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Dividend Income</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Dividend income decreased approximately $13,000 in the nine months ended July 31, 2013 to approximately $-0- compared to $13,000 in the prior year period. Dividend </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>income received in the nine months ended July 31, 2012 was related to the Videocon GDR&#146;s acquired in December 2007. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter44> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">43</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_45> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest Income </font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest income decreased to $-0- in the current period compared to approximately $3,000 in the nine months ended July 31, 2012. </font></p> <p style="MARGIN:0in 0pt 0pt 0in">&nbsp;</p> <p style="MARGIN:0in 0pt 0pt 0in"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Three months ended July 31, 2013 compared with three months ended July 31, 2012</font></u></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Net Revenue</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Net revenue decreased by approximately $250,000 in the three months ended July 31, 2013, to $-0- as compared to approximately $250,000 in the comparable prior-year period.&nbsp; Revenue during the prior period was principally from display technology license fees related to the AUO License Agreements of approximately $247,000.&nbsp; We did not record revenue from display technology license fees during the comparable current-year period.&nbsp; Revenue recognition of license fees has been suspended pending resolution of the AUO/E Ink Lawsuit. See &#147;- General&#148; above in this Item 2.&nbsp; Revenue from sales of encryption products decreased by approximately $3,000 in the three months ended July 31, 2013, to approximately $-0-, as compared to approximately $3,000 in the comparable prior-year period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Cost of Encryption Products Sold</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The cost of encryption products sold was $-0- in the current year period compared to less than $1,000 in the comparable prior year period.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Research and Development Expenses </font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We discontinued all research and development activity during the fourth quarter of fiscal year 2012.&nbsp; Accordingly, research and development expenses have decreased to $-0- in the three months ended July 31, 2013 from approximately $458,000 during the prior year period. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 12pt 0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Selling, General and Administrative Expenses</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Selling, general and administrative expenses increased by approximately $1,785,000 to approximately $2,219,000 in the three months ended July 31, 2013, from approximately $434,000 in the comparable prior-year period.&nbsp; The increase in the current period reflected the effect of discontinuing research and development activities in the fourth quarter of fiscal year 2012, including the discontinuation of allocating certain overhead cost to research and development expense.&nbsp; The increase in selling, general and administrative expenses was principally due to an increase in employee stock option expense of approximately $1,091,000, an increase in consultant stock option expense of approximately $147,000, an increase in legal and accounting fees of approximately $127,000, an increase in shareholder relations expense of approximately $206,000, and an </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>increase in employee compensation and related costs, other than stock option expense, of approximately $140,000.&nbsp; The additional legal and accounting fees and shareholder relations expense are related to the Company&#146;s restructuring, which commenced in the fourth quarter of the fiscal year ended October 31, 2012 and the filing of a registration statement with the SEC during the current fiscal year.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter45> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">44</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_46> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader46> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader46> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader46> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Change in fair value of derivative liability</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The&nbsp;gain recorded from the change in fair value of derivative liability increased to approximately $105,000 in the three months ended July 31, 2013, compared to $-0- in the comparable prior-year period.</font><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> &nbsp;</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Loss on extinguishment of debt</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Loss on extinguishment of debt&nbsp;aggregated approximately $344,000 in the three months ended July 31, 2013, compared to $-0- in the comparable prior-year period.</font><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> &nbsp;</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest Expense</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest expense increased to approximately $125,000 in the three month period ended July 31, 2013 from $-0- in the prior year period, due to interest expense and amortization of debt discount recorded in connection with the convertible debentures issued January 2013.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Dividend Income</font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Dividend income decreased approximately $13,000 in the three months ended July 31, 2013 to approximately $-0- compared to $13,000 in the prior year period. Dividend income received in the three months ended July 31, 2012 was related to the Videocon GDR&#146;s acquired in December 2007. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><b><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest Income </font></i></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Interest income decreased to $-0- in the current period compared to approximately $1,000 in the three months ended July 31, 2012. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>LIQUIDITY AND CAPITAL RESOURCES</font></u></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In September 2012, the Company received aggregate gross proceeds of $750,000 from the issuance of 8% convertible debentures due September 12, 2016 in a private placement, of which $300,000 was sold to the Company&#146;s current Chairman and then Chief Executive Officer and one other director of the Company.&nbsp; The debentures paid interest quarterly and were convertible into shares of our common stock at a conversion price of $0.092 per share on or before September 12, 2016.&nbsp; The Company recorded a discount to the carrying amount of the debentures of approximately $717,000 related to the debentures&#146; beneficial conversion feature.&nbsp; The Company was permitted to prepay the debentures at any time without penalty upon 30 days prior notice.&nbsp; The Company also had </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>the option to pay interest on the debentures in common stock.&nbsp; During the three month period ended April 30, 2013, the entire $750,000 principal amount of these debentures were converted into 8,152,170 shares of common stock and an additional 100,725 shares were issued in payment of approximately $9,300 of accrued interest through the conversion date.&nbsp; The conversion of the debentures resulted in a charge to interest expense of approximately $717,000 during the second quarter of fiscal 2013.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter46> <div> <div> <div align=center><font style=FONT-SIZE:10pt>45</font></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_47> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;</font></p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In January 2013, we received aggregate gross proceeds of $1,765,000 from the issuance of 8% convertible debentures due January 25, 2015, of which $250,000 was received from our current President, Chief Executive Officer and director, and two other directors of the Company.&nbsp; The debentures pay interest quarterly and are convertible into shares of our common stock at a conversion price of $0.15 per share on or before January 25, 2015.&nbsp; The embedded conversion feature has certain weighted average anti-dilution protection provisions which would be triggered if the Company issues its common stock, or certain common stock equivalents, (as defined) at a price below $0.15 per share.&nbsp; We have the option to pay any interest on the debentures in common stock based on the average of the closing prices of&nbsp; our common stock for the 10 trading days immediately preceding the interest payment date.&nbsp; We also have the option to pay any interest on the debentures with additional debentures.&nbsp; We may prepay the debentures at any time without penalty upon 30 days prior notice but only if the sales price of the common stock on the principal market on which the common stock is primarily listed and quoted for trading is at least $.30 for 20 trading days in any 30-day trading period ending no more than 15 days before the Company&#146;s prepayment notice.&nbsp; In conjunction with the issuance of the debentures, we issued warrants to purchase 5,882,745 shares of our common stock.&nbsp; Each warrant grants the holder the right to purchase one share of our common stock at the purchase price of $0.30 per share on or before January 25, 2016.&nbsp; In connection with the sale of debentures, we paid a placement fee of approximately $41,000 and issued the placement agent a warrant to purchase 276,014 shares of common stock with identical provisions as warrants issued with the debentures.&nbsp; We also agreed to register the common stock issuable upon conversion of the debentures and exercise of the warrants. &nbsp;The warrants may be exercised on a cashless basis only if there is not an effective registration statement covering such shares.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:27.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>On April 23, 2013, we entered into a common stock purchase agreement (the &#147;Stock Purchase Agreement&#148;) with Aspire Capital Fund LLC (&#147;Aspire Capital&#148;), which provides that Aspire Capital is committed to purchase up to an aggregate of $10 million of shares of our common stock over the two-year term of the agreement.&nbsp; In consideration for entering into the Stock Purchase Agreement, concurrently with the execution of the agreement, we issued to Aspire Capital 3,500,000 shares of our common stock as a commitment fee. Upon execution of the Stock Purchase Agreement, Aspire Capital purchased 2,500,000 shares on April 23, 2013 for $500,000.&nbsp; In order to sell any additional shares under the Stock Purchase Agreement, we were required to have a registration statement covering the shares issued to Aspire Capital declared effective by the SEC.&nbsp; Such registration statement was declared effective by the SEC in June 2013.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 0pt; PADDING-RIGHT:0%; TEXT-INDENT:27.5pt">&nbsp;</p><a name=_aciFooter47> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <div> <div align=center><font style=FONT-SIZE:10pt>46</font></div></div> <div> <div align=left>&nbsp;</div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_48> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader48> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader48> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader48> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Under the Stock Purchase Agreement there are two ways that we can elect to sell shares of common stock to Aspire Capital.&nbsp; On any business day we can select: (1)&nbsp;through a regular purchase of up to 200,000 shares (but not to exceed $200,000) at a known price based on the market price of our common stock prior to the time of each sale, and (2)&nbsp;through a volume-weighted average price, or VWAP, purchase of a number of shares up to 30% of the volume traded on the purchase date at a price equal to the lesser of (i) the closing sale price on the purchase date or (ii) 95% of the VWAP for such purchase date.&nbsp; The Company can only require a VWAP purchase if the closing sale price for our Common Stock on the notice day for the VWAP purchase is higher than $0.50 and the Company has also submitted a regular purchase notice to Aspire Capital in the amount of 200,000 shares on the notice date for the VWAP purchase.&nbsp; During the three months ended July 31, 2013 we sold an additional 600,000 shares of our common stock to Aspire Capital for approximately $132,000.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:27.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>The number of shares covered by and the timing of, each purchase notice are determined by us, at our sole discretion.&nbsp; The Company cannot execute any sales under the Stock Purchase Agreement when the closing for our common stock is less than $0.15.&nbsp; Aspire Capital has no right to require any sales from us, but is obligated to make purchases as directed in accordance with the Stock Purchase Agreement.&nbsp; The Stock Purchase Agreement may be terminated by us at any time, at our discretion, without any cost or penalty.&nbsp; We incurred expenses of approximately $42,000 in connection with the execution of the Stock Purchase Agreement in addition to the 3,500,000 shares of common stock we issued as a commitment fee.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Based on currently available information, we believe that our existing cash and cash equivalents, together with expected cash flows from the Stock Purchase Agreement with Aspire Capital and expected cash flows from patent licensing and enforcement, and other potential sources of cash flows will be sufficient to enable us to continue our patent licensing and enforcement activities for at least 12 months.&nbsp; However, our projections of future cash needs and cash flows may differ from actual results.&nbsp; If current cash on hand and cash that may be generated from the Stock Purchase Agreement and from patent licensing and enforcement activities are insufficient to satisfy our liquidity requirements, we may seek to sell our investment securities or other financial assets or our debt or additional equity securities or obtain loans from various financial institutions where possible.&nbsp; The sale of additional equity securities or convertible debt could result in dilution to our shareholders.&nbsp; We can give no assurance that we will generate sufficient cash flows in the future (through licensing and enforcement of patents, or otherwise) to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available, if needed, on favorable terms or at all.&nbsp; We can also give no assurance that we will have sufficient funds to repay our convertible debt at maturity in fiscal year 2015.&nbsp; If we cannot obtain such funding if needed or if we cannot sufficiently reduce operating expenses, we would need to curtail or cease some or all of our operations.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter48> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">47</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_49> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader49> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader49> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader49> <div>&nbsp;</div><a name=_aciHeader49> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>As shown in the accompanying condensed consolidated financial statements, as of October 31, 2012 we had an accumulated deficit of approximately $125,083,000 and a net </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>shareholders&#146; deficiency of approximately $1,194,000.&nbsp;These and the other factors described in our Annual Report on Form10-K for the fiscal year ended October 31, 2012 raised substantial doubt about our ability to continue as a going concern.&nbsp;Management&#146;s plans in regard to these matters are set forth above.&nbsp;The accompanying condensed financial statements have been prepared assuming that we will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. The report from KPMG LLP, the Company&#146;s former independent registered public accountants, dated January 29, 2013, included in our Annual Report on Form10-K for the fiscal year ended October 31, 2012, included an explanatory paragraph related to our ability to continue as a going concern. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:31.7pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The following table presents our expected cash requirements for contractual obligations outstanding as of July 31, 2013:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <div align=left>&nbsp;</div> <div align=left> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td> <td width=56% colspan=13 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Payments Due by Period</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% colspan=2 style="BORDER-BOTTOM:#000000 1px solid" rowspan=2 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>Less</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>than</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>1 year</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>1 - 3</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>years</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>3 - 5</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>years</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" rowspan=2 valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=LINE-HEIGHT:normal>After</font><br></p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>5 years</font></font></font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Contractual Obligations</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=10% colspan=2 style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom><font style=FONT-SIZE:12pt><font style="FONT-FAMILY:times new roman"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right></font></font> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style="FONT-FAMILY:times new roman"><font style=FONT-SIZE:12pt><font style=LINE-HEIGHT:normal>Total</font></font></font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Non-cancelable Operating Leases</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>292,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>98,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>390,000 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Convertible Debentures due 2015</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,440,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>1,440,000 </font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=40% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Secured Loan Obligation to Mars Overseas</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,000,000 </font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=8% style="HEIGHT:14.5pt; BORDER-BOTTOM:#000000 1px solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt; BACKGROUND-COLOR:#cceeff" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>5,000,000 </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=40% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>Total Contractual Cash Obligations</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>292,000 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,538,000 </font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>-</font></p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>$</font></p></td> <td width=8% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 2.25pt double; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; FONT-FAMILY:times new roman; LINE-HEIGHT:normal" color=#000000>6,830,000 </font></p></td></tr></table></div></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>EFFECT OF RECENTLY ISSUED PRONOUNCEMENTS</font></u></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Refer to Note 7 to the condensed consolidated financial statements &#150; &#147;Effect of Recently Adopted and Issued Pronouncements&#148; for discussion regarding the impact of recently adopted accounting pronouncements on our condensed consolidated financial statements.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter49> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">48</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_50> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader50> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>FORWARD-LOOKING STATEMENTS</font></u></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Information included in this Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>1995.&nbsp; Forward-looking statements are not statements of historical facts, but rather reflect our current expectations concerning future events and results.&nbsp; We generally use the words &#147;believes,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;anticipates,&#148; &#147;likely,&#148; &#147;will&#148; and similar expressions to identify forward-looking statements.&nbsp; Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements.&nbsp; These risks, uncertainties and factors include, but are not limited to, those factors set forth in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012 under &#147;Item 1A &#150; &#147;Risk Factors.&#148;&nbsp; You should read this discussion and analysis along with our Annual Report on Form 10-K for the fiscal year ended October 31, 2012 and the condensed consolidated financial statements included in this Report.&nbsp; Except as required by applicable law, including the securities laws of the United States, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.&nbsp; You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this Report.</font></p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=Item3>Item 3.&nbsp; </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Quantitative and Qualitative Disclosures About Market Risk.</font></u></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>As a smaller reporting company, the Company is not required to provide the disclosures set forth in this Item.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=Item4>Item 4.&nbsp; </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Controls and Procedures.</font></u></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We carried out an evaluation, under the supervision and with the participation of our management including our President and Chief Executive Officer and our Vice President &#150; Finance and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13-15(b) of the Securities Exchange Act of 1934, as amended.&nbsp; Based upon that evaluation, our Chief Executive Officer and our Vice President &#150; Finance and Chief Financial Officer concluded that our disclosure controls and procedures are effective as of the end of the period covered by this report.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>There was no change in our internal control over financial reporting during the third quarter of fiscal year 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter50> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">49</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_51> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader51> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in" align=center><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=PARTII>PART II.&nbsp; OTHER INFORMATION</font></u></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in" align=center>&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US><a name=Legal>Item 1. </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Legal Proceedings.</font></u></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On January 28, 2013, we filed a lawsuit in the United States District Court for the Northern District of California against AUO and E Ink in connection with the AUO License Agreements, alleging breach of contract and other charges, and are seeking compensatory, punitive, and treble damages.&nbsp;&nbsp; In addition to numerous material breaches by AUO of the AUO License Agreements, the Complaint alleges that AUO and E Ink conspired to obtain rights to CopyTele&#146;s</font><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> </font></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>ePaper&#174; Electrophoretic Display technology, and CopyTele&#146;s Nano Field Emission Display technology.&nbsp; CopyTele alleges that such activities violated several State and Federal anti-trust and unfair competition statutes for which punitive and/or treble damages are applicable.&nbsp; We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On January 28, 2013, CopyTele also initiated a patent infringement lawsuit in the United States District Court for the Northern District of California against E Ink, regarding certain patents owned by CopyTele pertaining to CopyTele&#146;s&nbsp; ePaper&#174; Electrophoretic Display technology.&nbsp; CopyTele alleges that E Ink has infringed and continues to infringe such patents in connection with the manufacture, sale, use, and importation of eReaders, and other devices with electrophoretic displays. We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:2pt 0in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; TEXT-AUTOSPACE:ideograph-numeric" face="Times New Roman" lang=EN-US>In June of 2013, CopyTele and AUO agreed to arbitrate CopyTele&#146;s charges, which we believe should result in a faster and more efficient adjudication. The Court also ordered E Ink to participate in the arbitration, for purposes of discovery. Because issues in the AUO/E Ink arbitration need to be resolved before the patent infringement case can proceed against E Ink, the Court dismissed the patent infringement case, without prejudice, meaning that CopyTele can re-file the patent infringement lawsuit, if necessary, following the arbitration.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On May 1, 2013, CopyTele&#146;s wholly owned subsidiary, Secure Web Conference Corporation, initiated a patent infringement lawsuit in the United States District Court for the Eastern District of New York against Microsoft Corporation, with respect to encryption technology utilized by Microsoft&#146;s SKYPE video conferencing service. &nbsp;On July 8, 2013, Secure Web Conference Corporation initiated similar lawsuits in the United States District Court for the Eastern District of New York against Citrix Systems and Logitech International.&nbsp; We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On August 7, 2013, CopyTele&#146;s wholly owned subsidiary, J-Channel Industries Corporation, initiated 8 separate patent infringement lawsuits in the United States District Court for the Eastern District of Tennessee, against Lowe&#146;s Companies, Clayton Homes, Pella Corporation, Jeld-Wen, Atrium Windows and Doors, Ply Gem Industries, RGF Industries, Tafco Corporation, Kinro Manufacturing, and Elixir Industries, all in connection with our patented J-Channel Window Frame technology. We can give no assurance as to the potential outcome of this litigation. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p><a name=_aciFooter51> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">50</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_52> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader52> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader52> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader52> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On August 20, 2013, CopyTele&#146;s wholly owned subsidiary, Loyalty Conversion Systems Corporation, initiated 10 separate patent infringement lawsuits in the United States District Court for the Eastern District of Texas, against </font><font style="FONT-SIZE:12pt; BACKGROUND:white" face="Times New Roman" color=black lang=EN-US>Alaska Airlines, American Airlines, Delta Airlines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, United Airlines, and U.S. Airways, all in connection with our Loyalty Conversion Systems patent portfolio. &nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>We can give no assurance as to the potential outcome of this litigation.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; LETTER-SPACING:0pt" face="Times New Roman" color=black lang=EN-US>Other than the foregoing, we are not a party to any material pending legal proceedings.&nbsp; We are party to claims and complaints that arise in the ordinary course of business.&nbsp; We believe that any liability that may ultimately result from the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on our financial position or results of operations.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;</font></p> <p style="MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=Risk>Item 1A.&nbsp; </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Risk Factors</font></u></b><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>.&nbsp;</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>There have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2012.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US><a name=Saleofequity>Item 2.&nbsp; </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Unregistered Sales of Equity Securities and Use of Proceeds</font></u></b><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>. &nbsp;</font></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN-LEFT:0in; MARGIN-RIGHT:0in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>On May 29, 2013, the Company offered the holders of the warrants issued in our February 2011 private placement the opportunity to exercise the warrants at a reduced exercise price of $0.16 per share (payable in cash) during the period ended July 15, 2013.&nbsp;&nbsp; In connection therewith, Messrs. Titterton, Johnson and Herms exercised warrants to purchase 1,400,000, 700,000 and 280,000 shares of our Common Stock and we received gross proceeds of $380,800.&nbsp; On June 17 2013, Mr. Krusos exercised the warrants previously issued to him in our February 2011 private placement on a &#147;cashless&#148; basis and received 547,493 shares of Common Stock.&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN-LEFT:0in; MARGIN-RIGHT:0in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>During the quarter ended July 31, 2013, we issued 101,000 shares of our Common Stock in payment of interest on the $1,765,000 principal amount of 8% Convertible Debentures due 2015 that we issued in our January 2013 private placement.&nbsp; Between June 21, 2013 and July 9, 2013, holders of $325,000 and $5,878 of principal and interest, respectively, of the debentures, converted their holdings into an aggregate of 2,166,775 and 20,125 shares of Common Stock</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>On April 23, 2013, we entered into a common stock purchase agreement with Aspire Capital Fund LLC (&#147;Aspire Capital&#148;), which provides that Aspire Capital is committed to purchase up to an aggregate of $10 million of shares of our common stock over the two-year term of the agreement.&nbsp;During the quarter ended July 31, 2013, we sold an aggregate of 600,000 shares of common stock to Aspire Capital at an average purchase price of $0.2192 per share.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Pursuant to the terms of an Agreement, dated as of February 15, 2013, between the Company and Harllon Holdings, LLC (&#147;Harllon&#148;), the Company issued Harllon 375,000 </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>shares on June 7, 2013 of common stock in payment of public relations and communications services.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><a name=_aciFooter52> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">51</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_53> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader53> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader53> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader53> <div>&nbsp;</div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Pursuant to the terms of a series of agreements between the Company and Larkin/Volpatt Communications (&#147;Larkin/Volpatt&#148;), the Company issued Larkin/Volpatt 40,000 shares common stock in payment of public relations and communications services during the quarter ended July 31, 2013.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>The issuances of the securities referred to above (i) were not registered under the Securities Act of 1933, as amended, in reliance on an exemption from registration under Section 3(b) or Section 4(2) of the Act, and Rule 506 promulgated thereunder, based on the fact that all of the investors are &#147;accredited investors,&#148; as such term is defined in Rule 501 of Regulation D and (ii) were not subject to any underwriting discounts or commissions.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US><a name=ITEM3>Item 3. </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Defaults Upon Senior Securities</font></u></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp;</font><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp; </font></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>None.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US><a name=ITEM4>Item 4</font></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>. </font><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Mine Safety Disclosures</font></u></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp; Not Applicable.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US><a name=ITEM5>Item 5. </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Other Information</font></u></b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There have been no material changes to the procedures by which security holders may recommend nominees to the Company&#146;s board of directors.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=ITEM6>Item 6.&nbsp; </font></b><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Exhibits.&nbsp;</font></u></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>31.1&nbsp;&nbsp; Certification of Chief Executive Officer, pursuant to Section 302 of&nbsp;&nbsp; the Sarbanes-Oxley Act of 2002, dated September 16, 2013.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>31.2&nbsp;&nbsp; Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated September 16, 2013.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>32.1&nbsp;&nbsp;&nbsp;&nbsp; Statement of Chief Executive Officer, pursuant to Section 1350 of Title 18 of the United States Code, dated September 16, 2013.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>32.2&nbsp;&nbsp;&nbsp;&nbsp; Statement of Chief Financial Officer, pursuant to Section 1350 of Title 18 of the United States Code, dated September 16 2013.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p><a name=_aciFooter53> <div> <div> <div align=center><font style=FONT-SIZE:10pt>52</font></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_54> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader54> <p style="MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciHeader54> <div><b><font style=TEXT-DECORATION:none face="Times New Roman" lang=EN-US><a href=#TableofContents><font style=FONT-SIZE:10pt>Table of Contents</font></a></font></b></div><a name=_aciHeader54> <div>&nbsp;</div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US><a name=Sign>SIGNATURES</font></u></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt 1.5in; TEXT-INDENT:-33pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>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, thereunto duly authorized.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:90%" face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> <div align=center> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=22% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=61% colspan=3 style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>COPYTELE, INC.</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=top> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>By:</font></p></td> <td width=44% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>/s/ Robert A. Berman</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Robert A. Berman</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>President and Chief Executive Officer </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>September 16, 2013</font></p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>(Principal Executive Officer)</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>By:</font></p></td> <td width=44% style="HEIGHT:15.25pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>/s/ Henry P. Herms</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Henry P. Herms</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Vice President - Finance and </font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Chief Financial Officer (Principal</font></p></td></tr> <tr style=HEIGHT:15.25pt> <td width=22% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>September 16, 2013</font></p></td> <td width=17% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=15% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=2% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=44% style="HEIGHT:15.25pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Financial and Accounting Officer)</font></p></td></tr></table></div> <p style="MARGIN:0in 0in 10pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p><a name=_aciFooter54> <div> <div> <div align=center> <table bordercolor=transparent style=WIDTH:0px cellpadding=0 cellspacing=0> <tr> <td style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" align=left valign=top> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style="FONT-SIZE:10pt; LETTER-SPACING:0pt" face="Times New Roman">53</font></font></p></td></tr></table></div></div> <div> <div align=left>&nbsp;</div></div></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div></a></body>
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<TYPE>EX-31
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<FILENAME>exhibit31_1.htm
<DESCRIPTION>EXHIBIT 31.1
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<head> </head> <body lang=EN-US> <div style=page:WordSection1> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right><u>Exhibit 31.1</u></p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center><u>CERTIFICATION</u></p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">I, Robert Berman, certify that:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q of CopyTele, Inc.; </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </p> <p style="TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; PAGE-BREAK-AFTER:avoid; TEXT-INDENT:-0.5in; MARGIN:0in 0in 12pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a&#8209;15(e) and 15d&#8209;15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style=LAYOUT-GRID-MODE:line>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style="LAYOUT-GRID-MODE:line; COLOR:black">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D</font>esigned such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style="LAYOUT-GRID-MODE:line; COLOR:black">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=LAYOUT-GRID-MODE:line>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style="LAYOUT-GRID-MODE:line; COLOR:black">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=LAYOUT-GRID-MODE:line>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </p> <p style="TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting. </p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <table width=50% bordercolor=transparent style="WIDTH:50%; BORDER-COLLAPSE:collapse; MARGIN-LEFT:4.65pt" cellpadding=0 cellspacing=0 align=left> <tr style=HEIGHT:15.95pt> <td width=172 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:128.9pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=328 nowrap style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:0px; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:246.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; BORDER-TOP:0px; BORDER-RIGHT:0px; PADDING-TOP:0in" valign=bottom> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style="COLOR:black; FONT-SIZE:11pt">&nbsp;/s/ Robert A. Berman</font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=172 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:128.9pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=328 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:246.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style="COLOR:black; FONT-SIZE:11pt">Robert A. Berman</font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=172 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:128.9pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=328 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:246.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style="COLOR:black; FONT-SIZE:11pt">President and Chief Executive Officer </font></p></td></tr> <tr style=HEIGHT:15.95pt> <td width=172 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:128.9pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt" align=right><font style="COLOR:black; FONT-SIZE:11pt">September 16, 2013</font></p></td> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=75 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:56.25pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <td width=328 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:246.05pt; PADDING-RIGHT:5.4pt; HEIGHT:15.95pt; PADDING-TOP:0in" valign=bottom> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style="COLOR:black; FONT-SIZE:11pt">(Principal Executive Officer)</font></p></td></tr></table> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p></div></body>
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<TYPE>EX-31
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<FILENAME>exhibit31_2.htm
<DESCRIPTION>EXHIBIT 31.2
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<head> </head> <body lang=EN-US> <div style=page:WordSection1> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right><u>Exhibit 31.2</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center><u>CERTIFICATION</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">I, Henry P. Herms, certify that:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q of CopyTele, Inc.; </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; PAGE-BREAK-AFTER:avoid; TEXT-INDENT:-0.5in; MARGIN:0in 0in 12pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a&#8209;15(e) and 15d&#8209;15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style=LAYOUT-GRID-MODE:line>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style="LAYOUT-GRID-MODE:line; COLOR:black">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D</font>esigned such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style="LAYOUT-GRID-MODE:line; COLOR:black">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=LAYOUT-GRID-MODE:line>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"><font style="LAYOUT-GRID-MODE:line; COLOR:black">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=LAYOUT-GRID-MODE:line>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 0.5in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <table width=50% bordercolor=transparent style="WIDTH:50%; BORDER-COLLAPSE:collapse; MARGIN-LEFT:4.65pt" cellpadding=0 cellspacing=0> <tr style=HEIGHT:15.75pt> <td width=197 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:148pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=327 nowrap style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:0px; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:245pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px; PADDING-TOP:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style=COLOR:black>/s/ Henry P. Herms </font></p></td></tr> <tr style=HEIGHT:15.75pt> <td width=197 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:148pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=327 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:245pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style=COLOR:black>Henry P. Herms</font></p></td></tr> <tr style=HEIGHT:15.75pt> <td width=197 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:148pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=327 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:245pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style=COLOR:black>Vice President - Finance and </font></p></td></tr> <tr style=HEIGHT:15.75pt> <td width=197 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:148pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=327 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:245pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style=COLOR:black>Chief Financial Officer (Principal</font></p></td></tr> <tr style=HEIGHT:15.75pt> <td width=197 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:148pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style=COLOR:black>September 16, 2013</font></p></td> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=64 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:48pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=bottom> <td width=327 nowrap style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:245pt; PADDING-RIGHT:5.4pt; HEIGHT:15.75pt; PADDING-TOP:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt"><font style=COLOR:black>Financial and Accounting Officer)</font></p></td></tr></table> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p></div></body>
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<TYPE>EX-32
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<FILENAME>exhibit32_1.htm
<DESCRIPTION>EXHIBIT 32.1
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<head> </head> <body lang=EN-US> <div style=page:WordSection1> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right>&nbsp;</p> <p style="TEXT-ALIGN:right; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right><u>Exhibit 32.1</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center>Statement of Chief Executive Officer</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center>Pursuant to Section 1350 of Title 18 of the United States Code</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">Pursuant to Section 1350 of Title 18 of the United States Code, the undersigned, Robert A. Berman, the President and Chief Executive Officer of CopyTele, Inc., hereby certifies that:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <ol type=1 style="MARGIN-TOP:0in; MARGIN-BOTTOM:0in"> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt">The Company's Form 10-Q Quarterly Report for the period ended July 31, 2013 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </li></ol> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <ol type=1 style="MARGIN-TOP:0in; MARGIN-BOTTOM:0in" start=2> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </li></ol> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"> <table width=50% bordercolor=transparent style="WIDTH:50%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=20 style=HEIGHT:15pt> <td width=147 height=20 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; WIDTH:110pt; HEIGHT:15pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td width=64 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; WIDTH:48pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td width=64 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; WIDTH:48pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td width=280 style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; WIDTH:210pt; BORDER-TOP:0px; BORDER-RIGHT:0px">&nbsp;/s/ Robert A. Berman</td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">Robert A. Berman</td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">President and Chief Executive Officer&nbsp;</td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15pt; BORDER-TOP:0px; BORDER-RIGHT:0px" align=right> <p align=left>September 16, 2013</p></td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">(Principal Executive Officer)</td></tr></table></p></div></body>
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<TYPE>EX-32
<SEQUENCE>5
<FILENAME>exhibit32_2.htm
<DESCRIPTION>EXHIBIT 32.2
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<head> </head> <body lang=EN-US> <div style=page:WordSection1> <p style="TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:right; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=right><u>Exhibit 32.2</u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center>Statement of Chief Financial Officer</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt" align=center>Pursuant to Section 1350 of Title 18 of the United States Code</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">Pursuant to Section 1350 of Title 18 of the United States Code, the undersigned, Henry P. Herms, the Vice President - Finance and Chief Financial Officer of CopyTele, Inc., hereby certifies that:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <ol type=1 style="MARGIN-TOP:0in; MARGIN-BOTTOM:0in"> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt">The Company's Form 10-Q Quarterly Report for the period ended July 31, 2013 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </li></ol> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <ol type=1 style="MARGIN-TOP:0in; MARGIN-BOTTOM:0in" start=2> <li style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:ideograph-numeric; FONT-SIZE:12pt">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </li></ol> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.25in; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt"> <table width=50% bordercolor=transparent style="WIDTH:50%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=21 style=HEIGHT:15.75pt> <td width=197 height=21 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; WIDTH:148pt; HEIGHT:15.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td width=64 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; WIDTH:48pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td width=64 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; WIDTH:48pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td width=326 style="BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; WIDTH:245pt; BORDER-TOP:0px; BORDER-RIGHT:0px">/s/ Henry P. Herms&nbsp;</td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">Henry P. Herms</td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">Vice President - Finance and&nbsp;</td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">Chief Financial Officer (Principal</td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; HEIGHT:15.75pt; BORDER-TOP:0px; BORDER-RIGHT:0px">September 16, 2013</td> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px"> <td style="BORDER-BOTTOM:0px; BORDER-LEFT:0px; BORDER-TOP:0px; BORDER-RIGHT:0px">Financial and Accounting Officer)</td></tr></table></p> <p style="MARGIN:0in 0in 0pt; FONT-FAMILY:'Times New Roman','serif'; TEXT-AUTOSPACE:; FONT-SIZE:12pt">&nbsp;</p></div></body>
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