<SEC-DOCUMENT>0001171520-20-000249.txt : 20200529
<SEC-HEADER>0001171520-20-000249.hdr.sgml : 20200529
<ACCEPTANCE-DATETIME>20200529134913
ACCESSION NUMBER:		0001171520-20-000249
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200529
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200529
DATE AS OF CHANGE:		20200529

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:		20926404

	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
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<FILENAME>eps9075.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">&nbsp;</P>

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

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

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported): <B>May 29,
2020</B></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><U>Sono-Tek Corporation</U></B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center">(Exact name of registrant as specified in its charter)</P>

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

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center">Commission File Number: <B>0-16035</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 10pt"><B><U>New York</U></B></FONT></TD>
    <TD STYLE="width: 5%; font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 43%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 10pt"><B><U>14-1568099</U></B></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; font-size: 10pt">(State of Incorporation)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 10pt">(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>
    <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; font-size: 10pt"><B><U>2012 Route 9W, Milton, New York</U></B></FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 10pt"><B><U>12547</U></B></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; font-size: 10pt">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 10pt">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including area code <B>(845)
795-2020</B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-bottom: 6pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Mincho; font-size: 10.5pt">&#9744;</FONT></TD>
    <TD STYLE="width: 95%; padding-bottom: 6pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; font-size: 10.5pt">Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 6pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Mincho; font-size: 10.5pt">&#9744;</FONT></TD>
    <TD STYLE="padding-bottom: 6pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; font-size: 10.5pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 6pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Mincho; font-size: 10.5pt">&#9744;</FONT></TD>
    <TD STYLE="padding-bottom: 6pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; font-size: 10.5pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Mincho; font-size: 10.5pt">&#9744;</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; font-size: 10.5pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Cambria,serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0">Securities registered pursuant to Section 12(b) of the Act:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 30%; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif; font-size: 9pt"><B><U>Title of each class</U></B></FONT></TD>
    <TD STYLE="width: 13%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 9pt"><B>Trading</B></FONT><FONT STYLE="font-size: 9pt"><BR>
<FONT STYLE="font-family: Cambria,serif"><B><U>Symbol(s)</U></B></FONT></FONT></TD>
    <TD STYLE="width: 57%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Cambria,serif; font-size: 9pt"><B><U>Name of each exchange on which registered</U></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 3pt; font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">None</FONT></TD>
    <TD STYLE="padding-top: 3pt; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 11pt">N/A</FONT></TD>
    <TD STYLE="padding-top: 3pt; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 11pt">N/A</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0">Indicate by check mark whether the registrant is an emerging growth company as defined
in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(&sect;240.12b-2 of this chapter).</P>

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

<P STYLE="font: 11pt Times New Roman,serif; margin: 0"><FONT STYLE="font-family: Cambria,serif">Emerging growth company </FONT><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></P>

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

<P STYLE="font: 11pt Times New Roman,serif; margin: 0"><FONT STYLE="font-family: Cambria,serif">If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. </FONT><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></P>

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






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

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

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

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B>Item 2.02: Results of Operations and Financial Condition.</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B>Item 7.01: Regulation FD Disclosure</B></P>

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

<P STYLE="font: 11pt Cambria,serif; margin: 0">On May 29, 2020, Sono-Tek Corporation issued a press release regarding its financial
results for the fiscal year ended February 29, 2020 and provided first quarter 2021 revenue guidance, in the form attached as exhibit
99.1.</P>

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

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

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B>Item 9.01: Financial Statements and Exhibits.</B></P>

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

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

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

<P STYLE="font: 11pt Cambria,serif; margin: 0">99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="ex99-1.htm">Press Release dated May 29, 2020</A>.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0 0 0 45pt">&nbsp;</P>

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

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

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

<P STYLE="font: 11pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">SONO-TEK CORPORATION</P>

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

<P STYLE="font: 11pt 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: 11pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">Stephen J. Bagley</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">Chief Financial Officer</P>

<P STYLE="font: 11pt Cambria,serif; margin: 0">May 29, 2020</P>

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

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

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

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

<P STYLE="font: 16pt Cambria,serif; margin: 12pt 0 0.25in; text-align: center"><B>Sono-Tek Announces Record Sales of $15.3 Million
and Record Net Income of $1.1 Million for Fiscal Year 2020 and Provides First Quarter FY2021 Sales Guidance and FY2021 Outlook</B></P>

<P STYLE="font: 14pt Cambria,serif; margin: 12pt 0 0.25in; text-align: center"><I>Record Yearend Backlog of $3.5 Million for Fiscal
Year 2020</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 4.5pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Strong demand in leading markets drove a sales increase of 32.3% over fiscal 2019
to $15.3 million with gross margin of 48%, a 240 basis point improvement; For the fourth quarter, sales were up 88% over the prior-year
period with gross margin of 48%, a 280 basis point improvement.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 4.5pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Higher net sales were driven by demand for highly customized ultrasonic coating systems
in the electronics/microelectronics market, as well as increased sales in the medical market for stent coating machines.&nbsp;
The continued product line expansion towards more complex higher value machinery, at higher prices, was a major factor in this
growth.&nbsp;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 4.5pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Achieved record yearend backlog of $3.5 million, up 16% over the prior year from continued
strong demand in the microelectronics/electronics, specialty glass, and medical markets. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 4.3pt"></TD><TD STYLE="width: 22.3pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">First quarter of fiscal 2021 sales growth is expected to increase approximately
21% from the prior year period with measurable conversion of sales to operating income and earnings.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt; text-align: justify"></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt; text-align: justify">MILTON, N.Y., May 29, 2020 &ndash; Sono-Tek Corporation
(OTCQX: SOTK) the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for its fourth
quarter and fiscal year ended February 29, 2020 (&ldquo;fiscal 2020&rdquo;).</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0.7pt 6pt 0; text-align: justify">Dr. Christopher L. Coccio, Chairman and CEO of
Sono-Tek, commented, &ldquo;During fiscal 2020, our strategy to expand the addressable market for our unique ultrasonic coating
technology continued to gain traction, reflecting our ongoing development of new, complex solutions for the Alternative Energy,
Microelectronics and Medical markets. These more complex solutions address high value applications for our customers and provide
economically compelling alternatives to traditional coating technologies. We focused our sales and marketing resources on these
targeted opportunities and, combined with strong market conditions, generated a sales increase of 32.3% to $15.3 million for the
fiscal year.&rdquo;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0.7pt 6pt 0; text-align: justify">&ldquo;The strong sales growth and 240 basis point
improvement in gross margin increased our operating leverage and drove a nearly seven fold increase in net income to a record $1.1
million for the year. We achieved this even as we continued to invest in advancing our technologies through new product development
and adding to our experienced staff of application engineers to further fuel growth.&rdquo;</P>




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

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<P STYLE="font: 12pt Cambria,serif; margin: 0">&ldquo;Our strong pipeline of opportunities gained momentum as well. This momentum,
combined with our record yearend backlog of $3.5 million, would normally provide us with confidence in our expectations for significant
revenue growth in fiscal 2021. However, COVID-19 broke out just as we began our new fiscal year in March 2020, making the full
year&rsquo;s revenue more challenging to forecast. With a strong pre-COVID-19 backlog in place, we now anticipate achieving a revenue
increase of approximately 21% for the first quarter of the new fiscal year, which ends May 31, 2020. This is slightly less than
our prior forecasted Q1 growth, and results from a delayed shipment of 1 -2 weeks, due to COVID-19 related schedule challenges.
It is also possible to forecast an improved second quarter, with revenue growth of 15% - 20% compared to last fiscal year, as our
business has evolved to larger projects with longer lead times. At this time though, we don&rsquo;t believe that we will be able
to maintain the same pace of growth in the last two quarters of the year compared to the same period of last fiscal year, due to
the current economic uncertainty coupled with lower GDP and higher unemployment. Therefore, the negative impacts of COVID-19 on
our business are most likely to occur in the second half of FY2021 and first half of FY2022, unless the lockdowns ease on our customers
and their consumers soon. We are continuing to work hard to accelerate our growth strategies and develop new business to offset
the potential COVID-19 related declines and firmly believe that we will thrive in spite of the current economic issues due to our
market leadership and successful history of developing our target markets,&rdquo; concluded Dr. Coccio.</P>

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

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt"><B>Fiscal 2020 Review </B><FONT STYLE="font-size: 9pt"><I>(Results compared
with fiscal 2019) </I></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: italic 9pt Cambria,serif">($ in thousands)</TD><TD STYLE="font: 12pt Times New Roman,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Times New Roman,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">Change</TD><TD STYLE="padding-bottom: 1pt; 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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">FY 2020</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">FY 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; font: 10pt Cambria,serif; text-align: left; padding-left: 5.4pt">Net Sales</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">15,355</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">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">11,610</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">3,745</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</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; padding-left: 5.4pt">Gross Profit</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">7,313</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">5,249</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">2,064</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">39</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: italic 10pt Cambria,serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Margin</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">47.6</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">%</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">45.2</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">%</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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="font: 12pt Times New Roman,serif; padding-left: 5.4pt">&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><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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 STYLE="font: 10pt Cambria,serif; text-align: left; padding-left: 5.4pt">Operating Income</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,115</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">82</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">1,033</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">1,260</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Margin</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">7.3</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">%</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">0.71</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">%</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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 STYLE="font: 12pt Times New Roman,serif; padding-left: 5.4pt">&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><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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="font: 10pt Cambria,serif; text-align: left; padding-left: 5.4pt">Net Income</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">1,107</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">162</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">$</TD><TD STYLE="font: 10pt Cambria,serif; text-align: right">945</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">583</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: italic 10pt Cambria,serif; text-align: left; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Margin</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">7.2</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">%</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">1.4</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">%</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; 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="font: 12pt Times New Roman,serif; padding-left: 5.4pt">&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><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: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">The introduction of several new high value machine offerings,
in combination with our continued investment in application engineering capabilities, drove sales up 32% to $15,355,000, compared
with the prior fiscal year.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">In fiscal 2020, approximately 71% of sales originated outside
of the United States and Canada. This compares with 65% in fiscal 2019. The geographic shift was mostly due to higher sales to
Asian and European markets.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">Gross profit and operating margins for fiscal 2020 increased
to 47.6% and 7.3%, respectively, from 45.2% and 0.71%, respectively, for fiscal 2019. The higher gross profit margin reflects a
strong year in providing complex coating solutions with increased applications engineering value to our customers, as well as a
shift in the mix of our markets. The shift in mix reflects increased sales to the microelectronics and medical sectors, whose products
contain the highest value of our applications expertise and contributed to increased margins as well.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">Sono-Tek achieved net income of $1.1 million, or $0.07
per share, basic and diluted, compared with $0.06 million, or $0.01 per share, basic and diluted, in the prior year. Weighted average
fully diluted common shares outstanding were 15,359,088 and 15,218,913 in fiscal 2020 and fiscal 2019, respectively.</P>


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

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0"><B>Fourth Quarter Fiscal 2020 Review </B><FONT STYLE="font-size: 9pt"><I>(Results
compared with the fourth quarter of fiscal 2019)</I></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Cambria, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 9pt; font-style: italic">($ in thousands)</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 12pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 12pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 12pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 12pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Change</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt">&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">FY 2020</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&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">FY 2019</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&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">$</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; text-align: left; padding-left: 5.4pt">Net Sales</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">5,514</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,936</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,578</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">88</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,665</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,336</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,329</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">99</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; padding-left: 5.4pt">&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">48.3</TD><TD STYLE="font-style: italic; text-align: left">%</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">45.5</TD><TD STYLE="font-style: italic; text-align: left">%</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Operating Income (Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">749</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(14</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">763</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,450</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 5.4pt">&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">14</TD><TD STYLE="font-style: italic; text-align: left">%</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">(.46</TD><TD STYLE="font-style: italic; text-align: left">%)</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-size: 12pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Net Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">688</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">627</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,028</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; padding-left: 5.4pt">&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">12.5</TD><TD STYLE="font-style: italic; text-align: left">%</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">2.1</TD><TD STYLE="font-style: italic; text-align: left">%</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0"><B>Balance Sheet and Cash Flow Overview</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">Net cash generated in operating activities was $3,254,000
in fiscal 2020, compared with usage of $109,000 cash in fiscal 2019. Capital expenditures in fiscal 2020 increased to $722,000
compared with $547,000 in the prior fiscal year.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">At February 29, 2020, the Company had total debt of $708,000,
down $163,000 from fiscal 2019 year-end. Total debt is approximately 7% of the Company&rsquo;s total capitalization and is related
to the mortgage on the industrial park where the Company&rsquo;s manufacturing operations are located.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">Sono-Tek has a revolving credit line of $1,500,000 and
a $750,000 equipment purchase facility, both of which had no outstanding borrowings at year-end.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; text-align: justify">On April 17, 2020, the Company entered into a loan transaction
pursuant to which it received loan proceeds of $1,001,640 on May 8, 2020 under the Paycheck Protection Program (&ldquo;PPP&rdquo;).
The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act, provides for loans to qualifying companies
and is administered by the U.S. Small Business Administration.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>About Sono-Tek</B></P>

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

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

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: justify; 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 microscopic coating technologies that enable better outcomes for its customers&rsquo; products and processes.</P>

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; background-color: white"><FONT STYLE="background-color: white">For further information,
visit <FONT STYLE="color: Blue"><U>www.sono-tek.com</U></FONT></FONT>.</P>

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


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<P STYLE="font: 12pt Cambria,serif; margin: 0 0.9pt 0 0"><B><I>Safe Harbor Statement</I></B></P>

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: justify">We discuss expectations regarding our future performance, such as our business outlook, in our annual and quarterly reports, press
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. 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; the duration and scope of the COVID-19 pandemic; the extent and duration of the pandemic&rsquo;s
adverse effect on economic and social activity, consumer confidence, discretionary spending and preferences, labor and healthcare
costs, and unemployment rates, any of which may reduce demand for some of our products and impair the ability of those with whom
we do business to satisfy their obligations to us; our ability to sell and provide our services and products, including as a result
of continued pandemic related travel restrictions, mandatory business closures, and stay-at home or similar orders; any temporary
reduction in our workforce, closures of our offices and facilities and our ability to adequately staff and maintain our operations
resulting from the pandemic; the ability of our customers and suppliers to continue their operations as result of the pandemic,
which could result in terminations of contracts, losses of revenue, and further adverse effects to our supply chain; maintenance
of increased order backlog, including effects of any COVID-19 related cancellations; 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; consummation of order proposals; completion of large
orders on schedule and on budget; continued sales growth in the specialty glass and portable electronics 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 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.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0.9pt 0 0; text-align: justify">&nbsp;</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%; padding-right: 5.4pt; padding-left: 5.4pt; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Stephen Bagley</FONT></TD>
    <TD STYLE="width: 58%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Calibri,sans-serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Cambria,serif">Chief Financial Officer</FONT></TD>
    <TD STYLE="font: 11pt Calibri,sans-serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Calibri,sans-serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Cambria,serif">Sono-Tek Corporation</FONT></TD>
    <TD STYLE="font: 11pt Calibri,sans-serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 11pt Cambria,serif; margin: 0"><FONT STYLE="color: Blue"><U>info@sono-tek.com</U></FONT></P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">Investor Relations:</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">Stephanie Prince</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">PCG Advisory</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">(646) 762-4518</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0"><FONT STYLE="color: Blue"><U>sprince@pcgadvisory.com</U></FONT></P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt Cambria,serif; margin: 0">&nbsp;</P></TD>
    <TD STYLE="font: 11pt Calibri,sans-serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>


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

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

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">February 29, 2020</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: bold 12pt Cambria,serif; text-align: center">ASSETS</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif; text-align: right">&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; text-align: center">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">Current Assets:</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 STYLE="width: 72%; font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Cash and cash equivalents</TD><TD STYLE="width: 2%; font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 11pt Cambria,serif; text-align: right">3,659,551</TD><TD STYLE="width: 1%; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 11pt Cambria,serif; text-align: right">3,144,123</TD><TD STYLE="width: 1%; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Marketable securities</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">4,219,240</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">2,365,706</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Accounts receivable (less allowance of $71,000 and $46,000, respectively)</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">929,701</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,397,891</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Inventories, net</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">2,381,891</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,658,016</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.3in">Prepaid expenses and other current assets</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">153,698</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">395,005</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.6in">Total current assets</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">11,344,081</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">8,960,741</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Times New Roman,serif">&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="font: 11pt Cambria,serif">Land</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">250,000</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">250,000</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">Buildings, net</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,654,061</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,731,547</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">Equipment, furnishings and leasehold improvements, net</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,212,578</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">802,932</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">Intangible assets, net</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">106,291</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">122,941</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt">Deferred tax asset</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">176,314</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">332,017</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Times New Roman,serif">&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="font: 11pt Cambria,serif; text-align: left; padding-bottom: 2.5pt">TOTAL ASSETS</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: right">14,743,325</TD><TD STYLE="padding-bottom: 2.5pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: right">12,200,178</TD><TD STYLE="padding-bottom: 2.5pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD 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; 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="font: bold 11pt Cambria,serif; text-align: center">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</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 STYLE="font: 12pt Times New Roman,serif">&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="font: 11pt Cambria,serif; text-align: left">Current Liabilities:</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 STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Accounts payable</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">668,721</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">585,694</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Accrued expenses</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,613,409</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">632,706</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Customer deposits</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,648,690</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">1,149,558</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Current maturities of long term debt</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">169,716</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">162,816</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.3in">Income taxes payable</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">70,621</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">6,272</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif; padding-left: 0.3in">&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 STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.6in">Total current liabilities</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">4,171,157</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">2,537,046</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 11pt Cambria,serif; text-align: left">Deferred tax liability</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">251,761</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">370,757</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt">Long term debt, less current maturities</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">538,000</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">707,715</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Times New Roman,serif">&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="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.3in">Total Liabilities</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">4,960,918</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">3,615,518</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Times New Roman,serif">&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="font: 11pt Cambria,serif; text-align: left">Commitments and Contingencies</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Times New Roman,serif">&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="font: 11pt Cambria,serif; text-align: left">Stockholders&rsquo; Equity</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 STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Common stock, $.01 par value; 25,000,000 shares authorized, 15,348,180 and 15,197,563 issued and outstanding, respectively</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">153,482</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">151,976</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-left: 0.3in">Additional paid-in capital</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">9,018,406</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; text-align: right">8,929,607</TD><TD STYLE="font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.3in">Accumulated earnings (deficit)</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">610,519</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">(496,923</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 1pt">Total stockholders&rsquo; equity</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">9,782,407</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 11pt Cambria,serif; text-align: right">8,584,660</TD><TD STYLE="padding-bottom: 1pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 11pt Cambria,serif; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: right">14,743,325</TD><TD STYLE="padding-bottom: 2.5pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 11pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 11pt Cambria,serif; text-align: right">12,200,178</TD><TD STYLE="padding-bottom: 2.5pt; font: 11pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 11pt Cambria,serif; margin: 0; text-align: center">See notes to consolidated financial statements.</P>


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

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF OPERATIONS </B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">Fiscal Year Ended</TD><TD STYLE="padding-bottom: 1pt; 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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">February 29, 2020</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</TD><TD STYLE="padding-bottom: 1pt; 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: 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><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; background-color: rgb(230,239,255)">
    <TD STYLE="width: 72%; font: 12pt Cambria,serif; text-align: left">Net Sales</TD><TD STYLE="width: 2%; font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 12pt Cambria,serif; text-align: right">15,354,619</TD><TD STYLE="width: 1%; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 12pt Cambria,serif; text-align: right">11,609,599</TD><TD STYLE="width: 1%; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 1pt">Cost of Goods Sold</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">8,041,378</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">6,361,353</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.5in">Gross Profit</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">7,313,241</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">5,248,246</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; text-align: left">Operating Expenses</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="font: 12pt Cambria,serif; text-align: left; padding-left: 0.2in">Research and product development</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">1,427,543</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">1,324,766</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left; padding-left: 0.2in">Marketing and selling</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">3,403,133</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">2,686,382</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.2in">General and administrative</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">1,367,073</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">1,154,611</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.5in">Total Operating Expenses</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">6,197,749</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">5,165,759</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; text-align: left">Operating Income</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">1,115,492</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">82,487</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; text-align: left">Other Income (Expense):</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="font: 12pt Cambria,serif; text-align: left">Interest Expense</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">(33,038</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">(39,977</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">Interest and Dividend Income</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">101,592</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">136,677</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">Realized gain on sale of marketable securities</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">73,699</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">Net unrealized loss on marketable securities</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">(100,184</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 1pt">Other Income</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">29,401</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">28,732</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">Income before Income Taxes</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">1,213,447</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; text-align: right">181,434</TD><TD STYLE="font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 1pt">Income Tax Expense</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">106,005</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 12pt Cambria,serif; text-align: right">19,847</TD><TD STYLE="padding-bottom: 1pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; text-align: left; padding-bottom: 2.5pt">Net Income</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">1,107,442</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">161,587</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">Basic Earnings Per Share</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">.07</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">.01</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">Diluted Earnings Per Share</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">.07</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">.01</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif">&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 STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">Weighted Average Shares &ndash; Basic</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">15,302,367</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">15,107,778</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Cambria,serif; text-decoration: underline">&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 STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">Weighted Average Shares &ndash; Diluted</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">15,359,088</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 12pt Cambria,serif; text-align: right">15,218,913</TD><TD STYLE="padding-bottom: 2.5pt; font: 12pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">See notes to consolidated financial statements.</P>


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

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">Fiscal Year Ended</TD><TD STYLE="padding-bottom: 1pt; 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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">February 29, 2020</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD><TD STYLE="font: bold 10pt Cambria,serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Cambria,serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Cambria,serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: bold 10pt Cambria,serif; text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES:</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="width: 72%; font: 10pt Cambria,serif; text-align: left; padding-left: 0.2in">Net Income</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">1,107,442</TD><TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Cambria,serif; text-align: right">161,587</TD><TD STYLE="width: 1%; 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; padding-left: 0.2in">Adjustments to reconcile net income to net cash provided by (used in) operating activities:</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="font: 10pt Cambria,serif; text-align: left; padding-left: 31.5pt">Depreciation and amortization</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">406,731</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">332,147</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; padding-left: 31.5pt">Stock based compensation expense</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">90,305</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">30,548</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; padding-left: 31.5pt">Bad debt expense</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">25,000</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: italic 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; padding-left: 31.5pt">Inventory reserve</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">(77,098</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">66,000</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 Times New Roman,serif; text-align: left; padding-left: 31.5pt">Unrealized loss on marketable securities</TD><TD STYLE="font: italic 10pt Cambria,serif">&nbsp;</TD>
    <TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: right">&mdash;</TD><TD STYLE="font: italic 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman,serif; text-align: right">100,184</TD><TD STYLE="font: 10pt Times New Roman,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; padding-left: 31.5pt">Deferred tax expense</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">36,707</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">49,743</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; padding-left: 0.5in">(Increase) Decrease in:</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 STYLE="font: 10pt Cambria,serif; text-align: left; padding-left: 31.5pt">Accounts receivable</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">443,190</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">(623,113</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Cambria,serif; padding-left: 31.5pt">Inventories</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">(646,777</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">(369,933</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; padding-left: 31.5pt">Prepaid expenses and other assets</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">241,307</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">(255,599</TD><TD STYLE="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; padding-left: 0.5in">(Decrease) Increase in:</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 STYLE="font: 10pt Cambria,serif; text-align: left; padding-left: 0.6in">Accounts payable and accrued expenses</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">1,063,730</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">(327,655</TD><TD STYLE="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; padding-left: 0.6in">Customer deposits</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">499,132</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">805,460</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; padding-bottom: 1pt; padding-left: 0.5in">Income taxes payable</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">64,349</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(78,349</TD><TD STYLE="padding-bottom: 1pt; 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; padding-bottom: 1pt; padding-left: 0.8in">Net Cash Provided by (Used In) Operating Activities</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">3,254,018</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(108,980</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font: 12pt Times New Roman,serif">&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="font: bold 10pt Cambria,serif; text-align: left; padding-left: 0.1in">CASH FLOWS FROM INVESTING ACTIVITIES:</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 STYLE="font: 10pt Cambria,serif; text-align: left; padding-left: 0.2in">Purchase of equipment, furnishings and leasehold improvements</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">(722,241</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">(547,251</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.2in">Sale (purchase) of marketable securities</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(1,853,534</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">1,940,010</TD><TD STYLE="padding-bottom: 1pt; 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; padding-bottom: 1pt; padding-left: 0.4in">Net Cash (Used In) Provided By Investing Activities</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(2,575,775</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">1,392,759</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif; padding-left: 0.1in">&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 STYLE="font: bold 10pt Cambria,serif; text-align: left; padding-left: 0.1in">CASH FLOWS FROM FINANCING ACTIVITIES:</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="font: 10pt Cambria,serif; text-align: left; padding-bottom: 1pt; padding-left: 0.2in">Repayment of long-term debt</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(162,815</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(156,120</TD><TD STYLE="padding-bottom: 1pt; 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; padding-bottom: 1pt; padding-left: 0.4in">Net Cash (Used In) Financing Activities</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(162,815</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">)</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">(156,120</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif; padding-left: 0.1in">&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 STYLE="font: bold 10pt Cambria,serif; text-align: left; padding-left: 0.1in">NET INCREASE IN CASH AND CASH EQUIVALENTS</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">515,428</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">1,127,659</TD><TD STYLE="font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif; padding-left: 0.1in">&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 STYLE="font: bold 10pt Cambria,serif; text-align: left; padding-left: 0.1in">CASH AND CASH EQUIVALENTS:</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="font: 10pt Cambria,serif; padding-bottom: 1pt; padding-left: 0.2in">Beginning of year</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">3,144,123</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 1pt">&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">2,016,464</TD><TD STYLE="padding-bottom: 1pt; 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: 2.5pt; padding-left: 0.2in">End of year</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: right">3,659,551</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: right">3,144,123</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 12pt Times New Roman,serif; padding-left: 0.2in">&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 STYLE="font: 12pt Times New Roman,serif; padding-left: 0.2in">&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="font: bold 10pt Cambria,serif; text-align: left">Supplemental Cash Flow Disclosure:</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 STYLE="font: 12pt Times New Roman,serif; padding-left: 0.2in">&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="font: 10pt Cambria,serif; text-align: left; padding-bottom: 2.5pt; padding-left: 0.2in">Interest Paid</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: right">33,038</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: right">39,977</TD><TD STYLE="padding-bottom: 2.5pt; 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; padding-bottom: 2.5pt; padding-left: 0.2in">Income Taxes Paid</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: right">4,948</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Cambria,serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Cambria,serif; text-align: right">28,178</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Cambria,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">See notes to consolidated financial statements.</P>

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

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