<SEC-DOCUMENT>0001171520-19-000037.txt : 20190114
<SEC-HEADER>0001171520-19-000037.hdr.sgml : 20190114
<ACCEPTANCE-DATETIME>20190114162104
ACCESSION NUMBER:		0001171520-19-000037
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190114
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20190114
DATE AS OF CHANGE:		20190114

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SONO TEK CORP
		CENTRAL INDEX KEY:			0000806172
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				141568099
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0228

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-16035
		FILM NUMBER:		19525266

	BUSINESS ADDRESS:	
		STREET 1:		2012 RT 9W BLDG 3
		CITY:			MILTON
		STATE:			NY
		ZIP:			12547
		BUSINESS PHONE:		8457952020

	MAIL ADDRESS:	
		STREET 1:		2012 RT. 9W, BLDG. 3,
		CITY:			MILTON
		STATE:			NY
		ZIP:			12547
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>eps8320.htm
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<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">UNITED STATES</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported): January 14,
2019</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Cambria,serif; margin: 0; text-align: center"><B><U>Sono-Tek Corporation</U></B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">(Exact name of registrant as specified in its charter)</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Commission File Number: 0-16035</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif"><U>New York</U></FONT></TD>
    <TD STYLE="width: 50%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif"><U>14-1568099</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif">(State of Incorporation)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif">(I.R.S. Employer ID No.)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif"><U>2012 Route 9W, Milton, New York</U></FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif"><U>12547</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including area code (845)
795-2020</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">Check appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following provisions:</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&#9744; Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&#9744; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&#9744; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&#9744; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>Item 2.02: Results of Operations and Financial Condition.</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>Item 7.01: Regulation FD Disclosure</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">On January 14, 2019, Sono-Tek Corporation issued a press release regarding its financial
results for the quarter ended November 30, 2018, in the form attached as exhibit 99.1.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall
not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange
Act&rdquo;) or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference
into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>Item 9.01: Financial Statements and Exhibits.</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">(d) Exhibits</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="ex99-1.htm">Press Release dated January 14, 2019</A>.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Signatures</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">SONO-TEK CORPORATION</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">By: <U>/s/ Stephen J. Bagley</U></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">Stephen J. Bagley</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">Chief Financial Officer</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">January 14, 2019</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"></P>

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<TYPE>EX-99.1 CHARTER
<SEQUENCE>2
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<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: justify">FOR IMMEDIATE RELEASE</P>

<P STYLE="font: 14pt Cambria,serif; margin: 12pt 0 6pt; text-align: center"><B>Sono-Tek Reports 7% Sales Growth and Record Backlog<BR>
in Third Quarter Fiscal 2019 and Provides Sales Guidance</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 10pt 0 0">MILTON, N.Y., January 14, 2019 &ndash; <FONT STYLE="color: Blue"><U>Sono-Tek
Corporation</U></FONT> (OTCQX: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial
results for its fiscal 2019 third quarter and year-to-date period ended November 30, 2018.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0"><B>Financial Highlights </B></P>

<UL STYLE="margin-top: 0in; list-style-type: disc">

<LI STYLE="font: 11pt Cambria,serif; margin: 0 0 4pt"><I>Net sales increased 7% to $3.2 million in the quarter and were up 7% to
$8.7 million for the year-to-date period</I></LI>

<LI STYLE="font: 11pt Cambria,serif; margin: 0 0 4pt"><I>Backlog more than doubled and reached a record level of $3.0 million at
quarter end, which includes an order for the Company&rsquo;s highest value ultrasonic coating machine to date</I></LI>

<LI STYLE="font: 11pt Cambria,serif; margin: 0 0 4pt"><I>Advancing market position in China fuel cell market: shipped three ultrasonic
coating solutions to new fuel cell customers during the quarter</I></LI>

</UL>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0.7pt 6pt 0">&ldquo;The effectiveness of our efforts to provide application engineering
expertise and more complete subsystems increased customer demand for custom-designed, higher value, complex machines as well as
higher demand from original equipment manufacturers for application-focused subsystems,&rdquo; commented<BR>
Dr. Christopher L. Coccio, Chairman and CEO. &ldquo;In particular, we are pleased with our early prospects in the Alternative Energy
market in China, having shipped three ultrasonic coating solutions to new fuel cell customers during the third quarter. We expect
that over the long term, demand from this market is poised for substantial growth as the industry continues to scale up from R&amp;D
prototype production to low rate production.&rdquo;</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Dr. Coccio concluded, &ldquo;We expect solid mid-single digit sales growth for
fiscal year 2019 including the impact of lighter fourth quarter shipments due to timing. Fourth quarter fiscal 2019 sales are expected
to be generally in line with the prior year&rsquo;s period. Fiscal 2020 should be another year of solid sales growth given our
robust pipeline of opportunities and record backlog.&rdquo;</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0 0 6pt"><B>Year-to-Date Fiscal 2019 Results </B><I>(Narrative compares with prior-year
period unless otherwise noted)</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10.5pt Cambria, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">Nine Months Ended <BR>
November 30,</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">Change</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; text-align: left">Net Sales</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,674,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,114,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">560,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">7%</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,912,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,951,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1%</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">45.1%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">48.7%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">96,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">299,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(203,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(68%</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">1.1%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">3.7%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">265,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(164,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(62%</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">1.2%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">3.3%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Diluted Earnings Per Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>Weighted Average Shares - Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,284,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,074,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">The net sales growth in the year-to-date period was driven primarily by increased
demand of highly customized, more complex systems from the Alternative Energy and Medical markets. As expected, third quarter sales
were measurably stronger to Alternative Energy customers driving this market&rsquo;s year-to-date sales up 41% to $1.6 million.</P>


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<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Use of the Company&rsquo;s development laboratory by customers to develop their
products and validate the capabilities of Sono-Tek&rsquo;s coating technologies has recently reached record levels. In particular,
the Medical industry has been especially active in the Company&rsquo;s lab and, as a result of providing application engineering
expertise along with paid coating services, helped drive year-to-date Medical market sales of $2.7 million, up 20%.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">In the first nine months of fiscal 2019, approximately 62% of sales originated
outside of the United States and Canada compared with 57% in the prior-year period.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">From a product sales perspective, year-to-date Multi-Axis Coating Systems increased
$797,000, or 26%, to $3.8 million as a result of higher sales of more complex, highly engineered and higher value machines primarily
for the Medical and Alternative Energy markets. OEM Systems were up 60%, or $519,000, to $1.4 million as the Company continued
to successfully provide subsystems and components, including the custom-designed Align system, to OEMs. These increases more than
offset the decline in sales of Integrated Coating Systems, which primarily are for more mature applications in the Medical market
and can be highly variable in order volume. <I>See the accompanying tables at the end of this release for a breakout of sales by
Market and Product for the nine months ended November 30, 2018. </I></P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Gross margin was negatively impacted by the change in product mix toward more
complex machines requiring more outsourced hardware content such as advanced motion control systems. Operating expenses were up
in the period as the Company continued to invest in research and product development as well as marketing and selling activities
in order to expand its future market opportunities. This includes additional software and resources as the Company begins to integrate
smart technology into its products.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">In the first nine months of fiscal 2019, net income and earnings per share reflect
$189,000 of unrealized losses on marketable securities.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Backlog of $3.0 million more than doubled from $1.2 million at the end of fiscal
2018 and $1.4 million at the end of the trailing second quarter of fiscal 2019. Included in the recent backlog total was the order
for an approximately $1.7 million ultrasonic coating machine, the single highest valued machine in the Company&rsquo;s history.
This machine is scheduled to be delivered by the end of fiscal 2020, which concludes on February 29, 2020. Orders can be highly variable from quarter-to-quarter resulting in large fluctuations in backlog, as product
shipments are more systematically managed for both customer timing requirements and staffing management. Excluding the large machine
order, the remainder of the backlog is expected to ship within one year.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0 0 6pt"><B>Third Quarter Fiscal 2019 Results </B><I>(Narrative compares with prior-year
period unless otherwise noted) </I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10.5pt Cambria, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">Three Months Ended <BR>
November 30,</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt">Change</FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; text-align: left">Net Sales</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,155,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,960,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">195,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">7%</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,296,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,442,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(146,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10%</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">41.1%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">48.7%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">188,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(138,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(73%</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">1.6%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">6.4%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">194,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(174,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(90%</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">0.6%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">6.6%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Diluted Earnings Per Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>Weighted Average Shares - Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,386,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,113,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">&nbsp;</P>


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<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Net sales growth was driven by higher value multi-axis coating machines primarily
for the Alternative Energy market in the third quarter. <I>See the accompanying tables at the end of this release for a breakout
of sales by Market and Product for the three months ended November 30, 2018. </I>Approximately 62% of sales originated outside
of the United States and Canada in the third quarter compared with 60% in the prior-year period.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">The change in gross margin reflects similar commentary as the year-to-date discussion
above combined with an aggressive pricing strategy to establish a leading foothold in the China fuel cell market. Net income and
earnings per share reflect $59,000 of unrealized losses on marketable securities.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0 0"><B>Balance Sheet and Cash Flow Overview</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Cash and cash equivalents and short-term investments at quarter-end were $5.7
million, down from $6.4 million at the end of fiscal 2018. The decline was the result of the timing of working capital requirements primarily due
to an increase in receivables and inventory. The increase in accounts receivable was due to a large number of orders being shipped
in the last month of the quarter to accommodate customer scheduling requests. Higher inventory is to address both customer demand
for shorter delivery cycles and increased order levels.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Year-to-date capital expenditures were $487,000 compared with $158,000 in the
prior-year period.&nbsp; The increase was primarily due to investments of $337,000 to upgrade the Company&rsquo;s CNC machinery.&nbsp;The
Company expects that capital expenditures for the remainder of the fiscal year to be nominal for a total of approximately $0.5
million.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">At November 30, 2018, the Company had total debt of $910,000, down $117,000
since fiscal 2018 year-end. Long-term debt is comprised of the mortgage on the Company&rsquo;s industrial park complex and has
an interest rate of 4.15%. Sono-Tek has a revolving credit line of $750,000, of which $659,000 was being utilized to collateralize
a letter of credit issued to a customer that has remitted a cash deposit on an order.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0"><B>About Sono-Tek</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0">Sono-Tek Corporation is the leading developer and manufacturer of ultrasonic
coating systems for applying precise, thin film coatings to protect, strengthen or smooth surfaces on parts and components for
the microelectronics/electronics, alternative energy, medical and industrial markets, including specialized glass applications
in construction and automotive.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0; background-color: white">The Company&rsquo;s solutions are environmentally-friendly,
efficient and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and
provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0; background-color: white">Sono-Tek&rsquo;s growth strategy is focused on leveraging
its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film
coating technologies that enable better outcomes for its customers&rsquo; products and processes. <FONT STYLE="background-color: white">For
further information, visit <FONT STYLE="color: Blue"><U>www.sono-tek.com</U></FONT></FONT>.</P>


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<P STYLE="font: 11pt Cambria,serif; margin: 6pt 0.7pt 6pt 0"><B><I>Safe Harbor Statement </I></B><BR>
<I>We discuss expectations regarding our future performance, such as our business outlook, in our annual and quarterly reports,
news releases, and other written and oral statements. These &ldquo;forward-looking statements&rdquo; are based on currently available
competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that
events could turn out to be significantly different from our expectations and could cause actual results to differ materially.
These factors include, among other considerations, general economic and business conditions; political, regulatory, tax, competitive
and technological developments affecting our operations or the demand for our products, including the imposition of tariffs; timely
development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing;
capacity additions, the ability to enforce patents; maintenance of operating leverage; maintenance of increased order backlog;
consummation of order proposals; completion of large orders on schedule and on budget; continued sales growth in the medical and
alternative energy markets; successful transition from primarily selling ultrasonic nozzles and components to a more complex business
providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted
range. We refer you to documents that the company files with the Securities and Exchange Commission, which includes Form 10-K and
Form 10-Qs containing additional important information</I>.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0 0 6pt"><B>For more information, contact:</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 42%; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Stephen J. Bagley</FONT></TD>
    <TD STYLE="width: 58%; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Deborah K. Pawlowski </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Chief Financial Officer</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Investor Relations</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Sono-Tek Corporation</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">(716) 843-3908</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; color: Blue"><U>info@sono-tek.com</U></FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; color: Blue"><U>dpawlowski@keiadvisors.com</U></FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Cambria,serif; margin: 0.25in 0 0"><B>FINANCIAL TABLES FOLLOW</B></P>


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<P STYLE="font: 11pt Cambria,serif; margin-top: 0; text-align: center; margin-bottom: 0"><B>SONO-TEK CORPORATION</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME</B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Nine&nbsp;Months&nbsp;Ended<BR>
    November 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Three&nbsp;Months&nbsp;Ended<BR>
    November 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; font: 9.5pt Cambria,serif; text-align: left">Net Sales</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9.5pt Cambria,serif; text-align: right">8,673,849</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9.5pt Cambria,serif; text-align: right">8,114,007</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9.5pt Cambria,serif; text-align: right">3,155,258</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9.5pt Cambria,serif; text-align: right">2,959,577</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">Cost of Goods Sold</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">4,761,919</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">4,162,819</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,858,970</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,517,414</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Profit</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">3,911,930</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">3,951,188</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,296,288</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,442,163</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; text-indent: -0.1in; padding-left: 0.2in">Research and product development costs</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">978,733</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">941,497</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">324,969</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">324,324</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; text-indent: -0.1in; padding-left: 0.2in">Marketing and selling expenses</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,979,365</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,880,115</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">652,664</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">664,644</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.2in">General and administrative costs</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">857,832</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">830,137</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">268,632</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">265,157</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">3,815,930</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">3,651,749</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,246,265</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,254,125</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Operating Income</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">96,000</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">299,439</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">50,023</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">188,038</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Interest Expense</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(30,501</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(35,330</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(9,684</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(11,299</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Interest and Dividend Income</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">104,686</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">58,298</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">33,164</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">22,087</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Realized gain on sale of marketable securities</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">119,075</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">11,207</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">19,791</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Net unrealized loss on marketable securities</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(189,016</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(59,359</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">Other income</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">28,196</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">23,785</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">8,681</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">16,193</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Income&nbsp;Before Income Taxes</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">128,440</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">357,399</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">22,825</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">234,810</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">Income Tax Expense</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">27,627</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">92,443</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">2,566</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">40,368</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Net Income</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">100,813</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">264,956</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">20,259</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">194,442</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Other Comprehensive Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.2in">Net unrealized gain on marketable securities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">111,137</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">51,499</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 2.5pt">Comprehensive Income</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">100,813</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">376,093</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">20,259</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">245,941</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">Basic Earnings&nbsp;Per Share</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.01</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.02</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.00</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.01</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">Diluted Earnings&nbsp;Per Share</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.01</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.02</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.00</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">0.01</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">Weighted Average Shares - Basic</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">15,078,933</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">14,964,048</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">15,164,440</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">14,969,933</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">Weighted Average Shares - Diluted</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">15,284,071</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">15,073,576</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">15,386,094</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">15,113,389</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; padding-bottom: 2pt; border-bottom: rgb(98,145,178) 2pt solid"></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
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<P STYLE="font: 11pt Cambria,serif; margin: 0"></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>SONO-TEK CORPORATION</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 9.5pt Cambria,serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center"><FONT STYLE="font-size: 10pt">November 30,</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center"><FONT STYLE="font-size: 10pt">February 28,</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">(Unaudited)</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: center">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Current Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 68%; font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Cash and cash equivalents</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 9.5pt Cambria,serif; text-align: right">1,626,881</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 9.5pt Cambria,serif; text-align: right">2,016,464</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; text-indent: -13.5pt; padding-left: 31.5pt">Marketable securities</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">4,091,350</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">4,405,900</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; text-indent: -13.5pt; padding-left: 31.5pt">Accounts receivable (less allowance of $46,000)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,163,316</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">774,778</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Inventories, net</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,742,885</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,354,083</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Prepaid expenses and other current assets</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">289,797</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">139,406</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.75in">Total current assets</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">8,914,229</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">8,690,631</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif">Land</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">250,000</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">250,000</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Buildings, net</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,746,568</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">1,807,339</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Equipment, furnishings and building improvements, net</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">800,127</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">498,401</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Intangible assets, net</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">125,813</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">136,576</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">Deferred tax asset</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">396,387</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">396,387</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 2.5pt">TOTAL ASSETS</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">12,233,124</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">11,779,334</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Accounts payable</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">818,029</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">652,863</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Accrued expenses</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">628,278</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">893,192</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Customer deposits</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">964,401</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">344,098</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Current maturities of long term debt</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">161,102</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">156,119</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Income taxes payable</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">10,821</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">84,621</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.75in">Total current liabilities</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">2,582,631</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">2,130,893</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Deferred tax liability</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">385,384</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">385,384</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">Long term debt, less current maturities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">748,994</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">870,532</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.75in">Total liabilities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">3,717,009</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">3,386,809</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Commitments and Contingencies</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">Stockholders&rsquo; Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; text-indent: -9pt; padding-left: 27pt">Common stock, $.01 par value; 25,000,000 shares authorized, 15,191,725 and 14,986,367 shares issued and outstanding at November 30 and February&nbsp;28, respectively</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">151,918</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">149,864</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Additional paid-in capital</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">8,921,894</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">8,901,171</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.25in">Accumulated deficit</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(557,697</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(760,115</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Accumulated other comprehensive income</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">101,605</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.75in">Total stockholders&rsquo; equity</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">8,516,115</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">8,392,525</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">12,233,124</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">11,779,334</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>


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<P STYLE="font: 11pt Cambria,serif; margin: 0"><B></B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>SONO-TEK CORPORATION</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Unaudited</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Nine&nbsp;Months&nbsp;Ended<BR>
    November 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9.5pt Cambria,serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9.5pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9.5pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 72%; font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.15in">Net Income</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9.5pt Cambria,serif; text-align: right">100,813</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 9.5pt Cambria,serif; text-align: right">264,956</TD><TD STYLE="width: 1%; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.15in">Adjustments to reconcile net income&nbsp;to net cash provided by operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.5in">Depreciation and amortization</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">256,519</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">279,848</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.5in">Stock based compensation expense</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">22,777</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">31,536</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.5in">Inventory reserve</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">48,000</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">77,601</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.5in">Unrealized loss on marketable securities</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">189,016</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.5in">Decrease (Increase) in:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 49.5pt">Accounts receivable</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(388,538</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">172,465</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-left: 49.5pt">Inventories</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(436,802</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(240,144</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 49.5pt">Prepaid expenses and other current assets</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(150,391</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">20,841</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.5in">(Decrease) Increase in:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 49.5pt">Accounts payable and accrued expenses</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(99,748</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">186,659</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 49.5pt">Customer deposits</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">620,303</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">573,650</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 49.5pt">Income taxes payable</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(73,800</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">37,555</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt">Net Cash Provided by Operating Activities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">88,149</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">1,404,967</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.15in">Purchase of equipment and furnishings</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(486,711</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(157,727</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.15in">Sale (purchase) of marketable securities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">125,534</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(1,994,175</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.5in">Net Cash Used in Investing Activities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(361,177</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(2,151,902</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-left: 0.15in">Proceeds from exercise of stock options</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">210</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.15in">Repayment of long term debt</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(116,555</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(111,777</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.5in">Net Cash Used In Financing Activities</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(116,555</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">(111,567</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">NET DECREASE IN CASH AND CASH EQUIVALENTS</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(389,583</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 9.5pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: right">(858,502</TD><TD STYLE="font: 9.5pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">CASH AND CASH EQUIVALENTS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt; padding-left: 0.15in">Beginning of period</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">2,016,464</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 9.5pt Cambria,serif; text-align: right">2,557,223</TD><TD STYLE="padding-bottom: 1pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt; padding-left: 0.15in">End of period</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">1,626,881</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">1,698,721</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left">SUPPLEMENTAL CASH FLOW DISCLOSURE:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 2.5pt; padding-left: 0.15in">Interest paid</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">30,501</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">35,330</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9.5pt Cambria,serif; text-align: left; padding-bottom: 2.5pt; padding-left: 0.15in">Income Taxes Paid</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">101,426</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 9.5pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 9.5pt Cambria,serif; text-align: right">58,969</TD><TD STYLE="padding-bottom: 2.5pt; font: 9.5pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B><I>&nbsp;</I></B></P>


<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; padding-bottom: 2pt; border-bottom: rgb(98,145,178) 2pt solid"></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->


<P STYLE="font: 11pt Cambria,serif; margin: 0"></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>SONO-TEK CORPORATION</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center"><B>ADDITIONAL INFORMATION &ndash; MARKET AND PRODUCT SALES</B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0 0"><B><I>Market Sales:</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center"><FONT STYLE="font-size: 10pt">Three Months Ended</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">November
    30,</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Change</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; font: 10pt Cambria,serif">Electronics/Microelectronics</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">1,025,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">1,001,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">24,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">2%</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif">Medical</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">607,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">815,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(208,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(26%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Alternative Energy</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,004,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">539,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">465,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">86%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Emerging R&amp;D and Other</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">137,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">254,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(117,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(46%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">Industrial</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">382,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">351,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">31,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">9%</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">TOTAL</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">3,155,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">2,960,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">195,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">7%</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center"><FONT STYLE="font-size: 10pt">Nine Months Ended</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: 12pt Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">November
    30,</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Change</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2018</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2017</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">%</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; font: 10pt Cambria,serif">Electronics/Microelectronics</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">2,719,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">2,715,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">4,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif">Medical</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">2,658,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">2,211,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">447,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">20%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Alternative Energy</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,644,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,169,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">475,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">41%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Emerging R&amp;D and Other</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">238,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">438,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(200,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(46%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">Industrial</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">1,415,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">1,581,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">(166,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">(11%</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">TOTAL</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">8,674,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">8,114,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">560,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">7%</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0 0"><B><I>Product Sales:</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center">Three Months Ended</TD><TD STYLE="font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid; text-align: center">November 30,</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">Change</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; font: 10pt Cambria,serif; text-align: left">Fluxing Systems</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">281,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">337,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">(56,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">(17%</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Integrated Coating Systems</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">286,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">426,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(140,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(33%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Multi-Axis Coating Systems</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,681,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,251,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">430,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">34%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">OEM Systems</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">402,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">250,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">152,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">61%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">Other</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">505,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">696,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">(191,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">(27%</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">TOTAL</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">3,155,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">2,960,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">195,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">7%</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center"><FONT STYLE="font-size: 10pt">Nine Months Ended</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">November 30,</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman,serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Change</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; font: 10pt Cambria,serif; text-align: left">Fluxing Systems</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">854,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">822,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">32,000</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">4%</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Integrated Coating Systems</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">917,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,676,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(759,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">(45%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">Multi-Axis Coating Systems</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">3,813,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">3,016,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">797,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">26%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">OEM Systems</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,380,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">861,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">519,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">60%</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">Other</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">1,710,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">1,739,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">(29,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: right">(2%</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">TOTAL</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">8,674,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">8,114,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">560,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: right">7%</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
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