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<SEC-DOCUMENT>0001079974-06-000434.txt : 20061120
<SEC-HEADER>0001079974-06-000434.hdr.sgml : 20061120
<ACCEPTANCE-DATETIME>20061120172533
ACCESSION NUMBER:		0001079974-06-000434
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20060930
FILED AS OF DATE:		20061120
DATE AS OF CHANGE:		20061120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ZYNEX MEDICAL HOLDINGS INC
		CENTRAL INDEX KEY:			0000846475
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				870403828
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	033-26787-D
		FILM NUMBER:		061230884

	BUSINESS ADDRESS:	
		STREET 1:		8100 SOUTH PARK WAY
		STREET 2:		SUITE A-9
		CITY:			LITTLETON
		STATE:			CO
		ZIP:			80120
		BUSINESS PHONE:		(303) 703-4906

	MAIL ADDRESS:	
		STREET 1:		8100 SOUTH PARK WAY
		STREET 2:		SUITE A-9
		CITY:			LITTLETON
		STATE:			CO
		ZIP:			80120

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ZYNEX MEDICAL HOLDINGS   INC
		DATE OF NAME CHANGE:	20040120

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FOX RIVER HOLDINGS  INC
		DATE OF NAME CHANGE:	20031126

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ARIZONA VENTURES INC
		DATE OF NAME CHANGE:	20030115
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>zynex10qsb_11182006.htm
<DESCRIPTION>QUARTERLY REPORT FOR PERIOD ENDED 9/30/2006
<TEXT>
<html>
  <head>
    <title>
      Quarterly Report for Period Ended 9/30/2006
</title>
<!-- Licensed to: EdgarTech Filing Services-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
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  <body bgcolor="#ffffff">
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>U.S.
        SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>FORM
        10-QSB</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">QUARTERLY
        REPORT UNDER SECTION 13 OR 15(d) OF</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">THE
        SECURITIES EXCHANGE ACT OF 1934</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">For
        the
        quarterly period ended </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>September
        30, 2006</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Commission
        File Number: </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>33-26787-D</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong><u>Zynex
        Medical Holdings, Inc.</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Exact
        name of small business issuer as specified in its charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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              <td valign="top" width="36%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;<u>Nevada</u></strong></font></div>
              </td>
              <td valign="top" width="23%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>33-26787-D</u></strong></font></div>
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              <td valign="top" width="28%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>90-0275169</u></strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="36%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction of incorporation)</font></div>
              </td>
              <td valign="top" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Commission
                  File Number)</font></div>
              </td>
              <td valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>8100
        Southpark Way, Suite A-9 </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>Littleton,
        Colorado 80120</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Address
        of Principal Executive Offices Zip Code</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>(303)
        703-4906</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Registrant's
        Telephone Number,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Including
        Area Code</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Check
        whether the issuer (1) filed all reports required to be filed by Section
        13 or
        15(d) of the Exchange Act during the preceding 12 months (or for such shorter
        period that the Registrant was required to file such reports), and (2) has
        been
        subject to such filing requirements for the past 90 days. </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Yes
        [X]</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;
        No [ ]</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act). Yes [ ] </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>No
        [X]</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
        of
        September 30, 2006, 24,205,893 shares of common stock were outstanding.&#160; As
        of November 20, 2006, 24,954,106 shares of common stock were
        outstanding.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Transitional
        Small Business Disclosure Format (check one): Yes [ ]&#160;&#160; </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>No
        [X]</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
            MEDICAL HOLDINGS, INC.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
            10-QSB</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INDEX</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%" style="border-bottom: #ffffff thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u><strong>Page
                      No.</strong></u></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Item
                      1. Financial Statements:</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Condensed
                      Consolidated Balance Sheet (unaudited) - September 30,
                      2006</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3</font></div>
                  </td>
                </tr>
                <tr bgcolor="#cceeff">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Condensed
                      Consolidated Statements of Operations (unaudited) - </font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Three
                      Months Ended September 30, 2006 and 2005 and Nine</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Months
                      ended September 30, 2006 and 2005</font></div>
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                  <td align="left" valign="top" width="6%">
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <td valign="bottom" width="16%">
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                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">7</font></div>
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                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Item
                      2. Management's Discussion and Analysis or Plan of
                      Operations</font></div>
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                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <td valign="top" width="16%">
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                  <td align="left" valign="top" width="66%">
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                      3. Controls and Procedures </font></div>
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                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <td valign="bottom" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">21</font></div>
                  </td>
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                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">PART
                      II: OTHER INFORMATION</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Item
                      1. Legal Proceedings</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">22</font></div>
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                <tr bgcolor="#cceeff">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Item
                      2. Unregistered Sales of Equity Securities and Use of
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                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">22</font></div>
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                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Item
                      3. Defaults Upon Senior Securities</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">22</font></div>
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                <tr bgcolor="#cceeff">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Item
                      4. Submission of Matters to a Vote of Security Holders</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">22</font></div>
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                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Item
                      5. Other Information</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">22</font></div>
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                <tr bgcolor="#cceeff">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Item
                      6. Exhibits</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">23</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#cceeff">
                  <td align="left" valign="top" width="66%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
                  </td>
                  <td align="left" valign="top" width="6%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">24</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
              </div>
            </div>
            <div id="PN" style="PAGE-BREAK-AFTER: always">
              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">2</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="2">
              </div>
            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right">
              </div>
            </div>
            <div>
              <div align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">ITEM
                  1.&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FINANCIAL
                  STATEMENTS</font></strong></div>
              </div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Zynex
                Medical Holdings, Inc.</strong></font></div>
            </div>
            <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Condensed
                Consolidated Balance Sheet</strong></font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>September
                30, 2006</strong></font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
            </div>
            <div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                <div>
                  <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                      <tr>
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">ASSETS&#160;</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Current
                            Assets:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                            and cash equivalents</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,344</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Receivables,
                            less allowance for uncollectible accounts of $1,226,731</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,192,845</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Inventory</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">472,563</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Deferred
                            consulting fees and other</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,733</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Prepaid
                            expenses</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">97,502</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Other</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,159</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Total
                            Current Assets</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,785,146</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Property
                            and equipment, less accumulated depreciation of $231,576</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">300,627</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Deposits</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,940</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,096,713</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">LIABILITIES
                            AND STOCKHOLDERS' EQUITY</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Current
                            Liabilities:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Notes
                            payable</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">220,552</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Capital
                            lease</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15,327</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Loans
                            from stockholder</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">57,013</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Accounts
                            payable</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">456,636</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Accrued
                            payroll and payroll taxes</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">57,539</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Other</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,499</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Total
                            Current Liabilities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">910,566</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Notes
                            payable, less current maturities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">304,448</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Capital
                            lease, less current maturities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,266</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Loans
                            from stockholder, less current maturties</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,883</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,262,163</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Stockholders'
                            Equity:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Preferred
                            stock, $0.001 par value, 10,000,000 shares authorized,
                            no shares issued or
                            outstanding</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Common
                            stock, $0.001 par value, 100,000,000 shares authorized,
                            24,205,893 shares
                            issued and outstanding</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,206</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Additional
                            paid-in capital</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,757,441</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Accumulated
                            deficit</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(947,097</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">834,550</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="85%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,096,713</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>

                  </table>
                </div>
              </div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
                accompanying notes to financial statements.</font></div>
            </div>
            <div>&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">3</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
            <div>&#160;</div>
            <div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Zynex
                Medical Holdings, Inc.</strong></font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Condensed
                Consolidated Statements of Operations</strong></font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
            </div>
            <div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><br></font>
                <div>
                  <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Three
                            Months Ended September 30,</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nine
                            Months Ended September 30,</font>&#160; </div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2006</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2005</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2006</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2005</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">as
                            Restated, Note 9</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">as
                            Restarted, Note 9</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            sales and rental income</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">743,787</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">604,141</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,809,738</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,738,566</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cost
                            of sales and rentals</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,191</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,405</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">233,194</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">75,161</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Gross
                            Profit</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">634,596</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">570,736</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,576,544</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,663,405</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Operating
                            expenses:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Selling, general and administrative</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">576,030</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">415,148</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,560,334</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,215,772</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Depreciation</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,479</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,032</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">66,713</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">48,860</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">600,509</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">431,180</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,627,047</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,264,632</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Income
                            (loss) from operations</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">34,087</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">139,556</font></div>
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(50,503</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">)&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">398,773</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Interest
                            and other expense</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(11,195</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,616</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(42,248</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(12,715</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Net
                            income (loss)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,892</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">135,940</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,751</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">386,058</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            income (loss) per common and common equivalent share</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Basic</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Diluted</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">&#160;</td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighted
                            average number of shares outstanding</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Basic</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,095,566</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,141,330</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,531,017</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,095,520</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Diluted</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,300,389</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,383,878</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,531,017</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,210,830</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>

                  </table>
                </div>
                <div>&#160;</div>
              </div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
                accompanying notes to financial statements.</font></div>
            </div>
            <div>&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">4</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
            <div>&#160;</div>
            <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Zynex
              Medical Holdings, Inc.</strong></font></div>
            <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Condensed
              Consolidated Statement of Stockholders' Equity</strong></font></div>
            <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Nine
              Months Ended September 30, 2006</strong></font></div>
            <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
          </div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><br></font>
              <div>
                <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                    <tr>
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                      <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                      <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Number
                          of Shares</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                        <div>&#160;</div>
                      </td>
                      <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Amount</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                        <div>&#160;</div>
                      </td>
                      <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Additional
                          Paid in Capital</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                        <div>&#160;</div>
                      </td>
                      <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Accumulated
                          Deficit</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                        <div>&#160;</div>
                      </td>
                      <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Total</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Balances
                          at December 31, 2005 as originally reported</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,199,421
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,199</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,465,024</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,047,454</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">440,769</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Prior
                          period adjustment (note 9)</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">193,108
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">193,108
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">&#160;</td>
                      <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Balances
                          at December 31, 2005 as restated</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,199,421
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,199
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,465,024
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(854,346</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">633,877
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Issuance
                          of common stock for consulting services</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">395,612
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">396
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">126,604
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">127,000
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Issuance
                          of common stock in private placement offering </font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">610,860
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">611
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">151,377
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">151,988
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Employee
                          stock compensation expense</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,436
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,436
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                          loss</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,751</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,751</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">&#160;</td>
                      <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff solid;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">September
                          30, 2006</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">$</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,205,893
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">$</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,206
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">$</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,757,441
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">$</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(947,097</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">$</td>
                      <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">834,550
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                    </tr>

                </table>
              </div>
            </div>
            <div>
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
                accompanying notes to financial statements</font></div>
            </div>
            <div>&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">5</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
            <div>
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Zynex
                Medical Holdings, Inc.</strong></font></div>
            </div>
            <div>
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Condensed
                Consolidated Statements of Cash Flow</strong></font></div>
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </div>
            <div>
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><br></font>
                <div>
                  <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td align="left" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nine
                            Months Ended September 30,</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2006</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2005</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(as
                            Restated, Note 9)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                            flows from operating activities:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            income (loss)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,751</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">386,058</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Adjustments
                            to reconcile net income (loss) to net cash (used in)
                            provided by
                            operations:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Depreciation</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">66,713
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">48,860
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Issuance of stock for consulting services</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">127,000
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,728
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Amortization of deferred consulting fees and other</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,556
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Employee stock compensation expense</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,436
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            Changes in operating assets and liabilities:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Accounts receivable</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(497,954</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(467,539</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Inventory</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21,629
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(169,726</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Refundable income taxes</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,586
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,105
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Other current assets</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">273
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,025
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Prepaid expenses</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(84,378</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Deposits</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,532
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Accounts payable</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">174,591
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">215,697
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                            Accrued liabilities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">38,902
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,559
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">&#160;</td>
                        <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            cash (used in) provided by operating activities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(206,397</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">76,299
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                            flows from investing activities:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Purchase
                            of equipment</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(102,522</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(70,362</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">&#160;</td>
                        <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            cash used in investing activities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(102,522</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(70,362</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                            flows from financing activities:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Payments
                            of notes payable and capital leases</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(151,374</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(66,598</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Proceeds
                            from note payable</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">240,000
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Proceeds
                            from loans from stockholder</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">146,900
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">92,011
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Payments
                            of loans from stockholder</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(90,984</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(44,000</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Issuance
                            of common stock</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">151,988
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Bank
                            overdraft</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,572
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            cash provided by (used in) financing activities</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">296,530</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9,015</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Decrease
                            in cash and cash equivalents</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(12,389</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,078</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                            and cash equivalents at beginning of period</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,733
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,078
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">&#160;</td>
                        <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                            and cash equivalents at end of period</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,344</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">$&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Supplemental
                            cash flow information:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Interest
                            paid, including interest paid to stockholder of $5,407
                            in
                            2006</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46,459</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,693</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>

                  </table>
                </div>
              </div>
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
                accompanying notes to financial statements.</font></div>
            </div>
            <div>&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">6</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
            <div>&#160;</div>
            <div>&#160;</div>
            <div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>1.&#160;&#160;&#160;
                Nature of Business</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Zynex
                Medical Holdings, Inc. ("Zynex" or the "Company") develops, manufactures,
                markets and sells its own design of FDA cleared (1) standard electrotherapy
                medical devices for pain relief / pain management, and (2) the </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">NeuroMove
                &#8482; medical device for stroke and spinal cord injury ("SCI")
                rehabilitation.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>2.&#160;&#160;&#160;
                Basis of Presentation</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                accompanying condensed consolidated financial statements are unaudited
                pursuant
                to the rules and regulations of the Securities and Exchange Commission
                and in
                accordance with accounting principles for interim financial information.
                In the
                opinion of management, these condensed consolidated financial statements
                contain
                all adjustments (consisting only of normal recurring adjustments)
                necessary to
                fairly state the financial position of the Company as of September
                30, 2006 and
                the results of its operations for the quarters and nine months ended
                September
                30, 2006 and 2005, and its cash flows for the nine months ended September
                30,
                2006 and 2005.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certain
                information and footnote disclosures normally included in financial
                statements
                prepared in accordance with generally accepted accounting principles
                have been
                condensed or omitted. Furthermore, these financial statements should
                be read in
                conjunction with Zynex Medical Holdings, Inc.'s audited financial
                statements at
                December 31, 2005 included in the Company's Form 10-KSB filed April
                18,
                2006.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                preparation of financial statements in conformity with accounting
                principles
                generally accepted in the United States requires management to make
                estimates
                and assumptions. Such estimates and assumptions affect the reported
                amounts of
                assets and liabilities as well as disclosure of contingent assets
                and
                liabilities at the date of the financial statements and the reported
                amounts of
                revenue and expense during the reporting period. Actual results could
                differ
                from those estimates.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certain
                reclassifications have been made to conform previously reported data
                to the
                current presentation. These reclassifications have no effect on net
                income
                (loss), financial position or cash flows as previously reported.
                During the
                quarter ended March 31, 2006 the Company changed its classification
                of freight
                out costs from cost of sales and rentals to selling, general and
                administrative
                expenses as management considers these costs to be part of its marketing
                program
                and thus they believe it is preferable to classify these costs as
                a component of
                selling, general and administrative expenses. Freight costs included
                in selling,
                general and administrative expenses </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">during
                the three months ended September 30, 2006 and 2005 are $11,152 and
                $4,042
                respectively, and for the nine months ended September 30, 2006 and
                2005 are
                $31,513 and $16,233 respectively.</font></div><br>
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                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
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                </div>
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              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>3.&#160;&#160;&#160;
                  Recent Accounting Pronouncements</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  December 2004, the Financial Accounting Standards Board ("FASB")
                  issued SFAS No.
                  123 (revised 2004), "Share-Based Payment" ("SFAS 123R"), which
                  is a revision of
                  SFAS No. 123, "Accounting for Stock-Based Compensation". SFAS 123R
                  supersedes
                  APB Opinion No. 25, "Accounting for Stock Issued to Employees"
                  and amends SFAS
                  No. 95, "Statement of Cash Flows". SFAS 123R focuses primarily
                  on accounting for
                  transactions in which an entity obtains employee services in share-based
                  payment
                  transactions and requires all share-based payments to employees,
                  including
                  grants of employee stock options, to be recognized as additional
                  compensation
                  expense in the financial statements based on the calculated fair
                  value of the
                  awards. SFAS 123R also requires the benefits of tax deductions
                  in excess of
                  recognized compensation costs to be reported as a financing cash
                  flow. This
                  requirement will reduce net operating cash flows and increase net
                  financing cash
                  flows in periods after adoption. We adopted this statement effective
                  for our
                  fiscal year beginning January 1, 2006. We have described the impact
                  of adopting
                  SFAS 123R in our condensed consolidated financial statements below.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  July
                  2006, the FASB issued Interpretation No. 48 ("FIN 48"), "Accounting
                  for
                  Uncertainty in Income Taxes: an interpretation of FASB Statement
                  No. 109". This
                  interpretation clarifies the accounting for uncertainty in income
                  taxes
                  recognized in an entity's financial statements in accordance with
                  SFAS No. 109,
                  "Accounting for Income Taxes". FIN 48 prescribes a recognition
                  threshold and
                  measurement principles for financial statement disclosure of tax
                  positions taken
                  or expected to be taken on a tax return. This interpretation is
                  effective
                  for</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">fiscal
                  years beginning after December 15, 2006. The Company is currently
                  assessing the
                  impact the adoption of FIN 48 will have on its consolidated financial
                  statements.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements".
                  This
                  statement defines fair value, establishes a framework for measuring
                  fair value
                  in generally accepted accounting principles and expands disclosures
                  about fair
                  value measurements. This statement applies under other accounting
                  pronouncements
                  that require or permit fair value measurements. SFAS No. 157 is
                  effective for
                  fiscal years beginning after November 15, 2007. The Company is
                  currently
                  assessing the impact the adoption of SFAS No. 157 will have on
                  its consolidated
                  financial statements.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  September 2006, the SEC issued SAB No. 108 in order to eliminate
                  the diversity
                  of practice surrounding how public companies quantify financial
                  statement
                  misstatements. In SAB 108, the SEC staff established an approach
                  that requires
                  quantification of financial statement misstatements based on the
                  effects of the
                  misstatements on each of the company's financial statements and
                  related
                  financial statement disclosures. SAB 108 is effective for fiscal
                  years ending
                  after November 15, 2006. The Company is currently assessing the
                  impact the
                  adoption of SAB No. 108 will have on its consolidated financial
                  statements.</font></div><br></div>
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                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
                    <hr style="COLOR: black" noshade size="2">
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              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>4.&#160;&#160;&#160;&#160;
                Stock Based Compensation</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                Company has a 2005 Stock Option Plan (the "Option Plan") and has
                reserved
                3,000,000 shares of common stock for issuance under the Option Plan.
                Vesting
                provisions are determined by the Board of Directors. All stock options
                expire no
                later than ten (10) years from the date of grant.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Effective
                January 1, 2006, the Company adopted Statement of Financial Accounting
                Standards
                ("SFAS") No. 123 (revised 2004), "Share-Based Payment" ("SFAS 123R"),
                using the
                modified prospective method. SFAS 123R requires the recognition of
                the cost of
                employee services received in exchange for an award of equity instruments
                in the
                financial statements and is measured based on the grant date fair
                value of the
                award. SFAS 123R also requires the stock option compensation expense
                to be
                recognized over the period during which an employee is required to
                provide
                service in exchange for the award (the vesting period). Prior to
                our adopting
                SFAS 123R, we accounted for our stock-based compensation plans under
                Accounting
                Principles Board Opinion ("APB") No. 25, Accounting for Stock Issued
                to
                Employees" ("APB 25"). Under APB 25, generally no compensation expense
                is
                recorded when the terms of the award are fixed and the exercise price
                of the
                employee stock option equals or exceeds the fair value of the underlying
                stock
                on the date of grant. We adopted the disclosure-only provision of
                SFAS No. 123,
                "Accounting for Stock-Based Compensation" ("SFAS 123"). </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">For
                the
                three months and nine months ended September 30, 2006, the Company
                recorded
                compensation expense related to stock options that decreased&#160;both
                net&#160;income from operations and&#160;net income by $4,727 and $14,426,
                respectively. The stock option compensation expense was included
                in selling,
                general and administrative expenses in the accompanying condensed
                consolidated
                statement of operations. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">For
                the
                three months ended September 30, 2006 the Company granted 122,000
                stock options
                to </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>employees
                </u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">at
                an
                exercise price of $0.27 per share. The fair value of stock options
                at the date
                of grant during the three months ended September 30, 2006 and September
                30, 2005
                was $24,888 and $13,834 The Company used the following assumptions
                to determine
                the fair value of stock option grants during the three months ended
                September
                30, 2006 and 2005: </font></div><br>
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                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
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              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div align="left">
                <table cellpadding="0" cellspacing="0" width="100%">

                    <tr>
                      <td align="left" valign="top" width="10%">&#160;</td>
                      <td width="5%">
                        <div>&#160;<u>2006 </u></div>
                        <div>&#160;</div>
                      </td>
                      <td align="left" valign="top" width="4%">&#160;<u>2005</u></td>
                    </tr>
                    <tr>
                      <td align="left" valign="top" width="10%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Expected
                          life </font></div>
                      </td>
                      <td width="5%">&#160;4 years</td>
                      <td align="left" valign="top" width="4%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4
                          years</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="top" width="10%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Volatility
                          </font></div>
                      </td>
                      <td width="5%">&#160;111.6%</td>
                      <td align="left" valign="top" width="4%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">122%</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="top" width="10%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Risk-free
                          interest rate </font></div>
                      </td>
                      <td width="5%">&#160;4.71%</td>
                      <td align="left" valign="top" width="4%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4.95%</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="top" width="10%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dividend
                          yield</font></div>
                      </td>
                      <td width="5%">&#160; 0</td>
                      <td align="left" valign="top" width="4%">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">0</font></div>
                      </td>
                    </tr>

                </table>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  expected life of stock options represents the period of time that
                  the stock
                  options granted are expected to be outstanding based on historical
                  exercise
                  trends. The expected volatility is based on the historical price
                  volatility of
                  our common stock. The risk-free interest rate represents the U.S.
                  Treasury bill
                  rate for the expected life of the related stock options. The dividend
                  yield
                  represents our anticipated cash dividend over the expected life
                  of the stock
                  options.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">A
                  summary
                  of stock option activity for the&#160;nine months ended September 30, 2006 is
                  presented below: </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>-</strong></font></div><br></div>
              <div>
                <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                    <tr>
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Shares
                          Under Option</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighted
                          Average Exercise Price</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighed
                          Average Remaining Contractual Life</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Aggregate</font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Intrinsic</font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Value</font></div>
                      </td>
                    </tr>
                    <tr>
                      <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Outstanding
                          at&#160;January 1, 2006</font></div>
                      </td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                    </tr>
                    <tr>
                      <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;
                          Stock option plan</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176,670</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.40</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Granted</font></div>
                      </td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">122,000</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.27</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exercised</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">--</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">--</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Forfeited
                          </font></div>
                      </td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(36,000</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.40</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Outstanding
                          at September 30, 2006</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">262,670</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.34</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9.07
                          Years</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">240</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exercisable
                          at September 30, 2006</font></div>
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                      <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30,668</font></div>
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                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.35</font></div>
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                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8.56
                          Years</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">60</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>

                </table><br>
                <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                  <div id="FTR">
                    <div id="GLFTR" style="WIDTH: 100%" align="left">
                    </div>
                  </div>
                  <div id="PN" style="PAGE-BREAK-AFTER: always">
                    <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">10</font></div>
                    <div style="WIDTH: 100%; TEXT-ALIGN: center">
                      <hr style="COLOR: black" noshade size="2">
                    </div>
                  </div>
                  <div id="HDR">
                    <div id="GLHDR" style="WIDTH: 100%" align="right">
                    </div>
                  </div>
                </div><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">A
                summary
                of the status of the Company's non-vested shares as of and for the
                nine months
                ended September 30, 2006,&#160;is presented below.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              <div align="left">
                <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

                    <tr>
                      <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nonvested&#160;Shares
                          </font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Under
                          Option</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighted
                          Average </font></div>
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Grant
                          Date Fair Value</font></div>
                      </td>
                    </tr>
                    <tr>
                      <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nonvested
                          at&#160;January 1, 2006</font></div>
                      </td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176,670</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.26</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Granted</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">122,000</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.20</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Vested</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(30,668</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.23</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Forfeited</font></div>
                      </td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(36,000</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.36</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>
                    <tr bgcolor="#cceeff">
                      <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nonvested
                          at September 30, 2006</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">232,002</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.23</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                      </td>
                      <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                      </td>
                    </tr>

                </table>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
                  of
                  September 30, 2006, we had $26,544 of unrecognized compensation
                  cost related to
                  stock options that will be recognized over a weighted average period
                  of
                  approximately two years.</font></div><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Prior
                  to
                  January 1, 2006, we accounted for stock-based compensation plans
                  under APB 25.
                  We adopted the disclosure-only provision of SFAS 123. Had compensation
                  expense
                  for stock option grants been determined based on the fair value
                  at the grant
                  dates consistent with the method prescribed by SFAS 123, our net
                  income and net
                  income per share would have been adjusted to the pro forma amounts
                  for the three
                  and nine months ended September 30, 2005, as indicated below:</font></div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div id="FTR">
                  <div id="GLFTR" style="WIDTH: 100%" align="left">
                  </div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always">
                  <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">11</font></div>
                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR">
                  <div id="GLHDR" style="WIDTH: 100%" align="right">
                  </div>
                </div>
              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><br></font>
                <div>
                  <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Three
                            Months Ended </font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">September
                            30, 2005</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nine</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Months</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Ended
                            </font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">September
                            30,</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2005</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;as
                              Restated, Note 9</font></div>
                          </div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;as
                            Restated, Note 9</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                            income as reported</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">135,940</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">386,058</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Deduct:
                            total stock-based employee compensation expense determined
</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                            under fair value based method for all awards</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,327</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,463</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pro
                            forma net income</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">131,613</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">377,595</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Income
                            per share:</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Basic
                            - as reported </font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0,02</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Diluted
                            - as reported</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Basic
                            - pro forma </font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#cceeff">
                        <td align="left" valign="bottom" width="71%" style="border-bottom: #cceeff solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Diluted
                            - pro forma</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #cceeff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff solid;">&#160;</td>
                      </tr>

                  </table>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5.&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 18pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;Earnings
                  Per Share</font></strong></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  Company computes net earnings (loss) per share in accordance with
                  SFAS No. 128,
                  "Earnings per Share", which establishes standards for computing
                  and presenting
                  net earnings (loss) per share. Basic earnings (loss) per share
                  are computed by
                  dividing net income (loss) by the weighted average number of common
                  shares
                  outstanding during the period. Diluted earnings per share is computed
                  by
                  dividing net income (loss) by the weighted average number of common
                  shares
                  outstanding and the number of dilutive potential common share equivalents
                  during
                  the period.</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                  <div id="FTR">
                    <div id="GLFTR" style="WIDTH: 100%" align="left">
                    </div>
                  </div>
                  <div id="PN" style="PAGE-BREAK-AFTER: always">
                    <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">12</font></div>
                    <div style="WIDTH: 100%; TEXT-ALIGN: center">
                      <hr style="COLOR: black" noshade size="2">
                    </div>
                  </div>
                  <div id="HDR">
                    <div id="GLHDR" style="WIDTH: 100%" align="right">
                    </div>
                  </div>
                </div><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  calculation of basic and diluted earnings (loss) per share for
                  the three and
                  nine months ended September 30, 2006 and 2005 is as follows: </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                  <div>
                    <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                        <tr>
                          <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a name="ftable"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Basic</font></a></div>
                          </td>
                          <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                          <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Three
                              Months Ended September 30, 2006</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                          <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Three
                              Months Ended September 30, 2005</font></div>
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">as
                              Restated, Note 9</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                          <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nine
                              Months Ended September 30, 2006</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                          <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Nine
                              Months Ended September 30, 2005</font></div>
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">as</font></div>
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Restated,
                              Note 9</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                        </tr>
                        <tr bgcolor="#cceeff">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net&#160;
                              income (loss) applicable to common stockholders </font></div>
                          </td>
                          <td width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,892</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">135,940</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,751</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">386,058</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighted
                              average shares outstanding - basic</font></div>
                          </td>
                          <td width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,095,566</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,141,330</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,531,017</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,095,520</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        </tr>
                        <tr bgcolor="#cceeff">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                                income (loss) per share - basic</font></div>
                            </div>
                          </td>
                          <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                          </td>
                          <td width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        </tr>
                        <tr bgcolor="#cceeff">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Diluted</font></div>
                          </td>
                          <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net&#160;income
                              (loss) applicable to common stockholders </font></div>
                          </td>
                          <td width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,892</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">135,940</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,751</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">386,058</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        </tr>
                        <tr bgcolor="#cceeff">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighted
                              average shares outstanding - basic</font></div>
                          </td>
                          <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,095,566</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,141.330</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23531,017</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,095,520</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dilutive
                              securities, treasury stock method</font></div>
                          </td>
                          <td width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">204,824</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">242,545</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">115,310</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        </tr>
                        <tr bgcolor="#cceeff">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Weighted
                              average shares outstanding - diluted</font></div>
                          </td>
                          <td width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,300,389</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,383,878</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,531,017</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: #cceeff;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,210,830</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: #cceeff;">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Net
                              income (loss) per share - diluted</font></div>
                          </td>
                          <td width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00
                              </font></div>
                          </td>
                          <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                          </td>
                          <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
                          </td>
                          <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        </tr>

                    </table>
                  </div>
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">6.&#160;&#160;&#160;
                  </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Loans
                  from stockholder</font></strong></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Effective
                  March 1, 2006, a previously non interest-bearing loan from Thomas
                  Sandgaard,
                  President and Chief Executive Officer, in the amount of $14,476
                  was converted to
                  a 15 month, 8.25% term loan of $14,980, including accrued interest,
                  with equal
                  monthly payments of principal and interest commencing March 31,
                  2006. The loan
                  is current as of September 30, 2006. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">During
                  the nine months ended September 30, 2006, Mr. Sandgaard loaned
                  the Company
                  $146,900, of which $50,000 was converted in March 2006 to a 24
                  month, 8.25% term
                  loan of $50,454, including accrued interest, with equal monthly
                  payments of
                  principal and interest commencing March 31, 2006.</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  loan
                  is current as of September 30, 2006. The balance of $96,900 is
                  represented by
                  8.25% demand notes, of which $64,998 was repaid as of September
                  30, 2006. The
                  remaining $31,902 plus $497 accrued interest will be repaid as
                  the Company&#8217;s
                  cash position and its bank covenants allow. At September 30, 2006,
                  a total of
                  $70,896 in loans from Mr. Sandgaard remained outstanding and were
                  current.
</font></div>
              </div><br>
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                  <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">13</font></div>
                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
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                  </div>
                </div>
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                  </div>
                </div>
              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">At
                  January 1, 2006 the Company owed Mr. Sandgaard $2,845 as an account
                  payable for
                  monies advanced by Mr. Sandgaard on the Company&#8217;s behalf for operating expenses
                  incurred by the Company. During the nine months ended September
                  30, 2006.&#160;
Mr. Sandgaard advanced an additional $40,238 for operating expenses
                  incurred by
                  the Company and was paid back $10,579, leaving a September 30,
                  2006 non-interest
                  bearing accounts payable balance owing to Mr. Sandgaard of $32,504.
                  Subsequent
                  to September 30, 2006 the accounts payable balance was fully
                  repaid.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">7.&#160;&#160;
                  Stockholders' Equity</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 518.1pt">&#160;</font></strong></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">For
                  the
                  quarter ended September 30, 2006, the Company issued 339,999 shares
                  of common
                  stock to investor relations consultants for services performed
                  at a price of
                  $0.30 per share.&#160; In addition, 156,250 shares of common stock were sold in
                  a non public offering to accredited investors at $0.32 a share.
                  The Company also
                  issued warrants to purchase 125,000 shares to the investors in
                  the non-public
                  offering; these warrants have an exercise price of $0.39 per share
                  and a term
                  expiring June 30, 2011.&#160; Additionally, the Company issued
                  18,651</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">shares
                  of
                  common stock to the broker-dealer and an investment banker responsible
                  for the
                  non public offering. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Subsequent
                  to the quarter ended September 30, 2006 through November 9, 2006,
                  the Company
                  issued 23,333 shares of common stock to investor relations consultants
                  for
                  services performed at a price of $0.30 per share.&#160; In addition, 668,750
                  shares of common stock were sold in a non public offering to accredited
                  investors at $0.32 a share. The Company also issued warrants to
                  purchase 535,000
                  shares to the investors in the non-public offering; these warrants
                  have an
                  exercise price of $0.39 per share and a term expiring June 11,
                  2011.</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                  Additionally, the Company issued 78,244 shares of common stock
                  to the
                  broker-dealer and an investment banker responsible for the non
                  public offering.
                  At the date of this report, in the same non public offering we
                  also have
                  proposed sales of 957,375 shares of common stock and warrants to
                  purchase
                  767,500 common shares to potential investors.</font></div>
              </div><br>
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                  <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">14</font></div>
                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
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                </div>
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                </div>
              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><br></font>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">At
                  December 31, 2005, the Company had outstanding warrants and non-employee
                  options
                  to purchase 3,245,121 shares of common stock&#160;at a weighted average exercise
                  price of $2.04. During the nine months ended September 30, 2006,
                  the Company
                  issued warrants and non-employee options&#160;to purchase 437,500 shares of
                  common stock&#160;with a weighted average exercise price of $0.39. At September
                  30, 2006, the Company had outstanding warrants and non-employee
                  options to
                  purchase 3,682,621</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">shares
                  of
                  common stock at a weighted average exercise price of $1.85.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Additionally,
                  at&#160;September 30, 2006, the Company had outstanding 350,000 options
                  to an
                  employee granted in 2005, which were not issued pursuant to the
                  Option
                  Plan.&#160; The options have an exercise price of $0.22; have a remaining term
                  at September 30, 2006 of 8 &#189; </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">y</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">ears
                  and
                  have an intrinsic value of $28,000.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>8.&#160;&#160;&#160;
                  Subsequent Events - Notes</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">On
                  October 18, 2006, the Company entered into a loan transaction with
                  Ascendiant
                  Capital Group, LLC (an affiliate of Ascendiant Securities, LLC)
                  and issued to
                  Ascendiant Capital (a) a secured Note in the total principal amount
                  of $275,000
                  (the "Note") and (b) a five-year warrant to purchase a total of
                  429,867 shares
                  of our common stock at&#160;a fixed&#160;exercise price of $0.39 per share.
                  The&#160;Note is convertible into common stock at a fixed conversion price
                  of
                  $0.32 per share. Net proceeds of approximately $206,000 from the
                  transaction
                  have been or will be used for general working capital.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  principal and interest on the Note are due in one lump sum on April
                  18, 2007.
                  However, we may extend the maturity date so that the outstanding
                  principal
                  balance and accrued and unpaid interest become due and payable
                  in six equal
                  monthly installments beginning on the original maturity date and
                  ending on
                  October 18, 2007. Interest on amounts outstanding under the Note
                  are at the rate
                  of 15% per annum through January 17, 2007, 18% per annum from January
                  18, 2007
                  to the original maturity date, and, if the maturity date is extended,
                  21% from
                  the original maturity date to the extended maturity date. Events
                  of default
                  include, among other things, a failure to make payment of principal
                  or interest
                  due under the note and the occurrence of any event of default under
                  an
                  obligation for borrowed money in excess of $50,000. The note is
                  secured by a
                  second priority security interest in all of our assets. We issued
                  the Note with
                  an original issue discount of 5%, and we made a non-refundable
                  prepayment of
                  interest through April 18, 2007. In accordance with the Note, we
                  paid to
Ascendiant Capital $10,000 as a reimbursement of expenses in connection
                  with the
                  transaction and a fee of 65,000 shares of common stock. We also
                  paid Ascendiant
                  Securities a placement fee of $22,000 in cash </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">and
                  issued to Ascendiant Securities a&#160;five-year warrant for </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">103,139
                  shares of common stock at an exercise price of $0.39 per share.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
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                      <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">15</font></div>
                      <div style="WIDTH: 100%; TEXT-ALIGN: center">
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                      </div>
                    </div>
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                      </div>
                    </div>
                  </div><br></div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
                  may
                  prepay the convertible note in whole or part at any time provided
                  all accrued
                  but unpaid interest is included in any prepayment. We must redeem
                  the Note
                  within two business days after (1) closing an equity or debt financing
                  or series
                  of such financings resulting in an aggregate gross cash proceeds
                  of $1,000,000
                  or more within 12 months of the date of the Note or (2) the &#8220;Sale of
                  Maker.&#8221;</font></div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Both
                the
                Note and warrant contain anti-dilution provisions. These provisions
                are not
                triggered by a decline in the stock price and include, with certain
                exclusions:
                in the case of the Note, the issuance of common stock, securities
                convertible
                into common stock or rights to acquire common stock at a price below
                $0.32 per
                share; and in the case of the warrant, the issuance of options or
                other rights
                to acquire common stock at below $0.39 per share. We have provided
                to Ascendiant
                Capital piggyback registration rights for the common stock underlying
                the Note
                and warrants and for the shares issued as the placement fee. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Ascendiant
                Capital, Silicon Valley Bank and we have entered into a subordination
                agreement
                dated October 17, 2006 in which the security interest and payment
                rights of the
                Note are made subordinate to our indebtedness to Silicon Valley Bank.
                The holder
                of the Note is not to demand payment or exercise any remedy relating
                to the Note
                until our indebtedness to Silicon Valley Bank is fully paid, except
                that we may
                pay Ascendiant Capital regularly scheduled payments of interest or
                principal
                pursuant to the terms of the Note so long as there is not an event
                of default
                under our loan and security agreement with the Bank.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
                have
                also agreed to modify an engagement agreement which we have with
                Ascendiant
                Securities for private offerings so that Ascendiant Securities will
                serve as a
                Zynex financial advisor to any and all financing transactions that
                involve
                investors other than those introduced by Ascendiant Securities, except
                for
                certain parties exempt from the provision, during the 12-month period
                following
                the closing date. For these services, Ascendiant Securities will
                earn a fee
                equal to 3% of gross proceeds associated with the transactions.
</font></div><br>
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              </div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ZYNEX
                MEDICAL HOLDINGS, INC.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">9.&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;
                  </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Prior
                  Period Adjustments </font></strong></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">On
                  November 13, 2006, the Board of Directors of the Company concluded
                  that
                  (1)&#160;the Company&#8217;s financial statements for the year ended December 31,
                  2005, included in its annual report on Form 10-KSB for the fiscal
                  year ended
                  December 31, 2005 and (2)&#160;the Company&#8217;s financial statements for the
                  quarters ended September 30, 2005, March 31, 2006 and June 30,
                  2006, included in
                  its quarterly reports on Form 10-QSB for these quarters, should
                  be revised to
                  reflect adjustments to the Company&#8217;s inventory as of such dates. The adjustments
                  result from a detailed inventory analysis made in connection with
                  the financial
                  statements of the Company for the quarter ended September 30, 2006.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  Company discovered errors in its accounting for inventory that
                  understated both
                  the value and quantity of its finished goods and the value of its
                  rental
                  products. Accordingly, accumulated deficit at the beginning of
                  2006 has been
                  adjusted to correct the error. The error had no effect on net income
                  (loss) for
                  the three months and nine months ended September 30, 2006 because
                  the
                  adjustments are reflected in the financial statements for such
                  three and nine
                  month periods. An adjustment was recorded to decrease accumulated
                  deficit and
                  increase inventory at January 1, 2006 by $193,108. Additionally,
                  an adjustment
                  was recorded to decrease cost of sales and rentals by $6,530 and
                  $125,152 for
                  the three and nine months ended September 30, 2005, respectively.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  Company previously reported net income of $129,410, or $0.01 per
                  share and
                  $260,906, or $0.01 per share for the three and nine months ended
                  September 30,
                  2005 respectively. The restatements resulted in the Company reporting
                  net income
                  of $135,940, or $0.01 per share and net income of $386,058, or
                  $0.02, per share
                  for the three months and nine months ended September 30, 2006,
                  respectively.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                  Company will prepare revised financial statements </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">for
                  the
                  year ended December 31, 2005, and for the quarters ended March
                  31, 2006 and June
                  30, 2006.</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>&#160;</div>
            </div>
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                <div style="WIDTH: 100%; TEXT-ALIGN: center">
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              <div><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
                2.&#160;&#160;&#160; MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
                OPERATIONS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><br></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                following information should be read in conjunction with the Company's
                condensed
                consolidated financial statements and related footnotes contained
                in this
                report.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Prior
                Period Adjustments</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
                Note
                9 to the unaudited condensed consolidated financial statements above
                regarding
                adjustments to the Company&#8217;s financial statements for the three and nine months
                ended September 30, 2005 because of changes to the accounting for
                inventory.
</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Results
                of Operations </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Net
                Sales and Rental Income.</u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                Net
                sales and rental income for the quarters and nine months ended September
                30,
                2006 and 2005 were $743,787 and $604,141and $1,809,738 and $1,738,566
                respectively, an increase of $139,646 or 23.1% and $71,172 or 4.1%.
                The increase
                in net revenue for the quarter and nine months ended September 30,
                2006 compared
                to the quarter and nine months ended September 30, 2005 was primarily
                due to an
                increase in prescriptions (orders) for rentals and purchases of the
                Company&#8217;s
                standard electrotherapy products resulting from the addition of sixteen
                (16)
                standard product, industry experienced commission only sales representatives
                in
                July and August 2006. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
                sales
                and rental income is reported net, after deductions for bad debt
                and estimated
                insurance company reimbursement deductions. The deductions are known
                throughout
                the health care industry as &#8220;contractual adjustments&#8221; and describe the process
                whereby the healthcare insurers unilaterally reduce the amount they
                reimburse
                for our products as compared to the rental rates and sales prices
                charged by us.
                The amounts deducted from net sales and rental income for these charges
                increased in the third quarter of 2006 and for the nine months ended
                September
                30, 2006 by $327,431 and $617,683 when compared to the same periods
                in
                2005.&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Gross
                    Profit</u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
                    Gross
                    profit for the quarter and nine months ended September 30, 2006
                    was $634,596 or
                    85.3 % and $1,576,544 or 87.1% of net revenue for the respective
                    periods. For
                    the quarter and nine months ended September 30, 2006 this represents
                    an increase
                    of $63,860 or 11.2% and a decrease of $86,861 or 5.2 % from the
                    gross profit of
                    $570,736 or 94.5% of net revenue and $1,663,405 or 95.7% of net
                    revenue for the
                    quarter and nine months ended September 30, 2005 respectively.
                    The increase in
                    gross profit for the quarter ended September 30, 2006 as compared
                    with the same
                    period in 2005 is primarily because (1) revenue increased from
                    the prior period
                    and (2) rental revenue, which maintains a higher profit margin
                    than sales
                    revenue, represents a larger percentage of total revenue than
                    in the prior
                    periods. The decrease in gross profit for the nine months ended
                    September 30,
                    2006 compared to the nine months ended September 30, 2005 primarily
                    results from
                    the addition of inventory value in the 2005 period by the adjustments
                    described
                    in Note 9 of the unaudited consolidated financial statements.
                    </font></div>
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Selling,
                  General and Administrative.</u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                  Selling,
                  general and administrative expenses for the quarter and nine months
                  ended
                  September 30, 2006 were $576,030 an increase of $160,882 or 38,8%,
                  and
                  $1,560,334 an increase of $344,562 or 28,3 % respectively compared
                  to $415,148
                  and $1,215,772 for the same periods in 2005.&#160; The quarterly increase was
                  primarily due to increases in payroll, public company expenses,
                  advertising,
                  marketing and promotion, sales representative commissions, depreciation
                  because
                  of more equipment out on rental, postage and delivery.&#160; The increases were
                  in part offset by lower insurance premiums and legal expense. The
                  nine-month
                  increase was primarily due to increases in payroll, sales representative
                  commissions, depreciation expense, public company expenses, consulting
                  expenses,
                  and utilities (primarily because the local utility billed incorrectly
                  in 2004
                  and 2005 and recovered their billing shortfall in 2006). The nine
                  month
                  increases were partly offset by decreases in </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">a
                  number
                  of smaller decreases none of which were significant in
                  themselves.</font></div>
              </div>
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              <div><br><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Interest
                  and other income (expense).</u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;
                  Interest and other income (expense) was ($11,195) for the quarter
                  ended
                  September 30, 2006, an increase of $7,579 compared to ($3,616)
                  for the same
                  period last year, and ($42,248) for the nine months ended September
                  30, 2006, an
                  increase of $ 29,533 compared to ($12,715) for the same period
                  last year. The
                  increases resulted primarily from the Company's September 2005
                  and March 2006
                  increases in commercial bank debt&#160;as well as&#160;loans from its majority
                  stockholder, which is&#160;described in Note&#160;6 to the unaudited
                  consolidated financial statements in this Report.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Liquidity
                  and Capital Resources.</u></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                  We have
                  limited liquidity. During the third quarter of 2006, we sold in
                  a non-public
                  offering through a broker dealer&#160;156,250 shares of common stock at $0.32
                  per share resulting in net proceeds to us of $43,425. Subsequent
                  to September 30
                  we sold another 688,750 shares in the same offering resulting in
                  net proceeds to
                  us of $185,869 We issued warrants in conjunction with the sale
                  of these shares
                  of common stock. We have additional proposed sales in the non-public
                  offering
                  and have not determined when to end the non-public offering. See
                  Note 7 of Notes
                  to the unaudited consolidated financial statements in this Report.
</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  October, we issued notes to meet cash needs. See Note 8 of Notes
                  to the
                  unaudited consolidated financial statements in this Report. These
                  notes are
                  intended as a temporary financing. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
                  expect
                  that our cash requirements will increase as our operations expand
                  and to fully
                  implement our business plan. For this reason we may raise additional
                  debt or
                  equity financing in 2007. To achieve this objective from time to
                  time we are in
                  discussions with investment bankers and potential investors that
                  may provide
                  short and long term funding.</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">There
                  can
                  be no assurance that we will be able to raise such additional financing
                  or do so
                  on terms that are acceptable to the Company.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
                  limited liquidity is primarily a result of (a) the required high
                  levels of
                  consignment inventory that are standard in the electrotherapy industry,
                  (b) the
                  payment of commissions to salespersons based on sales or rentals
                  prior to
                  reimbursement for such transaction, (c) the high level of outstanding
                  accounts
                  receivable because of the deferred payment practices of third party
                  health
                  payers, and (d) the delayed cost recovery inherent in rental transactions.
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Contingencies
                  such as unanticipated shortfalls in revenues or increases in expenses
                  could
                  affect our projected revenue, cash resulting from operations and
                  liquidity.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                  used
                  in operating activities was $206,397 for the nine months ended
                  September 30,
                  2006 compared to $76,299 cash provided by operating activities
                  for the nine
                  months ended September 30, 2005. The primary reasons for the decrease
                  in cash
                  flow was the net loss in 2006 compared to 2005, an increase in
                  prepaid expenses,
                  an increase in accounts receivable due to the increase in gross
                  revenue and a
                  slower increase in accounts payable in 2006 than in 2005 made possible
                  by the
                  sale of common stock in the referenced non-public offering, proceeds
                  from a bank
                  note payable and net proceeds from loans from our major
                  stockholder.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                  used
                  in investing activities for the nine months ended September 30,
                  2006 was
                  $102,522 compared to cash used in investing activities of $70,362
                  for the same
                  period in 2005. Cash used in investing activities primarily represents
                  the
                  purchase and in-house production of rental products.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Cash
                  provided by financing activities was $296,530 for the nine months
                  ended
                  September 30, 2006 compared with cash used in financing activities
                  of $9,015 for
                  the nine months ended September 30, 2005. During the nine months
                  ended September
                  30, 2006 the Company received $151,988 from the sale of common
                  stock in a
                  non-public offering, $240,000 in bank financing, and $55,916 in
                  net loans from
                  Thomas Sandgaard. During the same period the Company repaid $151,374
                  in notes
                  payable and capital leases.</font></div><br></div>
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                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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              <div>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
                  primary sources of capital for the nine months ended September
                  30, 2006 and
                  through the date of this Report have been collections from our
                  sale and rental
                  activities, net borrowings from Silicon Valley Bank and Thomas
                  Sandgaard, the
                  notes sold in October, 2006 and the non-public offerings described
                  above. For
                  information regarding the borrowings from Silicon Valley Bank and
                  Mr. Sandgaard,
                  see Note 6 and Note 8 to our unaudited consolidated financial statements
                  in this
                  Report and Item 6 in our Form 10-KSB for the year ended December
                  31, 2005
</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Recently
                  issued accounting pronouncements:</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  December 2004, the Financial Accounting Standards Board ("FASB")
                  issued SFAS No.
                  123 (revised 2004), "Share-Based Payment" ("SFAS 123R"), which
                  is a revision of
                  SFAS No. 123, "Accounting for Stock-Based Compensation". SFAS 123R
                  supersedes
                  APB Opinion No. 25, "Accounting for Stock Issued to Employees"
                  and amends SFAS
                  No. 95, "Statement of Cash Flows". SFAS 123R focuses primarily
                  on accounting for
                  transactions in which an entity obtains employee services in share-based
                  payment</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">transactions
                  and requires all share-based payments to employees, including grants
                  of employee
                  stock options, to be recognized as additional compensation expense
                  in the
                  financial statements based on the calculated fair value of the
                  awards. SFAS 123R
                  also requires the benefits of tax deductions in excess of recognized
                  compensation costs to be reported as a financing cash flow. This
                  requirement
                  will reduce net operating cash flows and increase net financing
                  cash flows in
                  periods after adoption. We adopted this statement effective for
                  our fiscal year
                  beginning January 1, 2006. We have described the impact of adopting
                  SFAS 123R in
                  our condensed consolidated financial statements in Note 4, Stock
                  Based
                  Compensation.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  July
                  2006, the FASB issued Interpretation No. 48 ("FIN 48"), "Accounting
                  for
                  Uncertainty in Income Taxes: an interpretation of FASB Statement
                  No. 109". This
                  interpretation clarifies the accounting for uncertainty in income
                  taxes
                  recognized in an entity's financial statements in accordance with
                  SFAS No. 109,
                  "Accounting for Income Taxes". FIN 48 prescribes a recognition
                  threshold and
                  measurement principles for financial statement disclosure of tax
                  positions taken
                  or expected to be taken on a tax return. This interpretation is
                  effective
                  for</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">fiscal
                  years beginning after December 15, 2006. The Company is currently
                  assessing the
                  impact the adoption of FIN 48 will have on its consolidated financial
                  statements.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements".
                  This
                  statement defines fair value, establishes a framework for measuring
                  fair value
                  in generally accepted accounting principles and expands disclosures
                  about fair
                  value measurements. This statement applies under other accounting
                  pronouncements
                  that require or permit fair value measurements. SFAS No. 157 is
                  effective for
                  fiscal years beginning after November 15, 2007. The Company is
                  currently
                  assessing the impact the adoption of SFAS No. 157 will have on
                  its consolidated
                  financial statements.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
                  September 2006, the SEC issued SAB No. 108 in order to eliminate
                  the diversity
                  of practice surrounding how public companies quantify financial
                  statement
                  misstatements. In SAB 108, the SEC staff established an approach
                  that requires
                  quantification of financial statement misstatements based on the
                  effects of the
                  misstatements on each of the company's financial statements and
                  related
                  financial statement disclosures. SAB 108 is effective for fiscal
                  years ending
                  after November 15, 2006. The Company is currently assessing the
                  impact the
                  adoption of SAB No. 108 will have on its consolidated financial
                  statements.</font></div>
              </div>
            </div>
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SPECIAL
      CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certain
      information included in this quarterly report contains statements that are
      forward-looking, such as statements relating to plans for future expansion
      and
      other business development activities, as well as other capital spending and
      financing sources. Such forward-looking information involves important risks
      and
      uncertainties that could significantly affect anticipated results in the future
      and, accordingly, such results may differ from those expressed in any
      forward-looking statements made by or on behalf of the Company. These risks
      include the need to obtain additional capital in order to grow our business,
      larger competitors with greater financial resources, the need to keep pace
      with
      technological changes, our dependence on the reimbursement from insurance
      companies for products sold or rented to our customers, our dependence on third
      party manufacturers to produce our goods on time and to our specifications,
      the
      acceptance of our products by hospitals and clinicians, implementation of our
      sales strategy including a strong direct sales force and other risks described
      in our 10-KSB Report for the year ended December 31, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      3. CONTROLS AND PROCEDURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Disclosure
      Controls and Procedures</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
      of the
      end of the period covered by this quarterly report, an evaluation was performed
      under the supervision and with the participation of the Company's management
      including the Company's Chief Executive Officer and Chief Financial Officer,
      of
      the effectiveness of the design and operation of the Company's disclosure
      controls and procedures. Based on that evaluation, the Chief</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Executive
      Officer and Chief Financial Officer concluded that because of a material
      weakness in internal control over financial reporting relating to inventory,
      the
      Company&#8217;s disclosure controls and procedures were not effective as of September
      30, 2006. The inventory matters will result in revised financial statements
      described elsewhere in this Report. &#160;Although the material weakness was not
      remediated as of September 30, 2006 it has been substantially corrected in
      the
      fourth quarter of 2006.as noted below, and the Company&#8217;s management believes
      that the consolidated financial condition, results of operations and cash flows
      are fairly presented in this form 10-QSB Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Remediation
      Efforts</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      the
      fourth quarter of 2006, we implemented systems, procedures and controls relating
      to the cost and quantity of our inventory and in particular our rental products
      and finished goods. These systems and procedures include a comprehensive
      inventory tracking by serial number throughout our organization and on rental
      with our customers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><u><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Changes
      in Internal Control Over Financial Reporting </font><br></u></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">There
          have been no changes in internal control over financial reporting that
          occurred
          during the third quarter of 2006 that have materially affected, or are
          reasonably likely to affect, the Company&#8217;s internal control over financial
          reporting. However, subsequent to September 30, 2006 and prior to filing
          of this
          Form 10-QSB, the Company began implementing changes to its internal controls,
          as
          described above, to address the material weakness identified above. The
          Company
          will continue to review its internal controls and procedures and will take
          further action as appropriate. </font></div>
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      </div>
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    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>PART
        II - OTHER INFORMATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        1. LEGAL PROCEEDINGS.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">None.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
        PROCEEDS.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
        Note
        7 to the Notes to the Condensed Consolidated Financial Statements for
        Information regarding the issuance of common stock to investor relations
        consultants and sales of our common stock to new investors during the third
        quarter of 2006. In the issuances, we made no general solicitation, and we
        believe that the investor relations consultants and investors met the standards
        for a purchaser in a non-public offering. We relied upon an exemption from
        securities registration for a non-public offering in issuing these securities
        to
        the investor relations consultants and investors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
        sale
        to investors in the non-public offering pursuant to Section 4(2) of the
        Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated
        hereunder, was a sale to accredited investors of 156,250 shares of common
        stock
        at $.032 per share in cash. Such sales occurred on August 18, 2006. The shares
        were accompanied by warrants to purchase 125,000shares of common stock. See
        Note
        7 of Notes to Condensed Consolidated Financial Statements for additional
        information. The shares were offered through a broker-dealer who received
        commissions of $5,000 and 14,063 shares of our common stock (representing
        9% of
        the number of shares of common stock sold by the broker). Additionally, an
        investment banker who introduced us to the broker dealer received a finder&#8217;s fee
        of $1,575 and 4,219 shares of common stock. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        3. DEFAULTS UPON SENIOR SECURITIES.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">None</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">None</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5. OTHER INFORMATION.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">See
        Note
        7 to the Condensed Consolidated Financial Statements in this Report and Part
        II,
        Item 2 above for information on unregistered sales of securities which
        information is incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      6.&#160; &#160; EXHIBITS.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;
        (a)&#160;&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
      <table cellpadding="0" cellspacing="0" width="88%">

          <tr>
            <td valign="top" width="8%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<u>Exhibit</u></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><u><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Number</font></u></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="77%">
              <div>&#160;</div>
              <div><u>Description</u></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="top" width="77%">&#160;</td>
          </tr>
          <tr bgcolor="#cceeff">
            <td valign="top" width="8%">
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            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="77%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certification
                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
                Act of 2002</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="77%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">31.2</font></div>
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            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="77%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certification
                of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
                Act of 2002</font></div>
            </td>
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          <tr bgcolor="white">
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="77%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">32</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="77%">
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                of Chief Executive Officer and Chief Financial Officer Pursuant to
                Section
                18 U.S.C. Section 1350</font></div>
            </td>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      duly authorized.</font></div>
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          <tr>
            <td align="left" valign="top" width="42%">&#160;</td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dated:
                November 20, 2006</font></div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">/s/&#160;Thomas
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          <tr>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Thomas
                Sandgaard,</font></div>
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          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">President,
                Chief Executive Officer and Treasurer
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="top" width="46%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dated:&#160;November
                20, 2006</font></div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">/s/&#160;Peter
                J. Leveton</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Peter
                J. Leveton,</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
          <div style="WIDTH: 100%" align="left">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          </div>
        </div>
      </div>
    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><u><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibit
                </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Number</font></u></div>
            </td>
            <td align="left" valign="top" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="72%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><u><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Description</font></u></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">31.1</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certification
                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
                Act of 2002</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
            <td valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">31.2</font></div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Certification
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                Act of 2002</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#cceeff">
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                of Chief Executive Officer and Chief Financial Officer Pursuant to
                Section
                18 U.S.C. Section 1350</font></div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>zynex10qsbex311_11182006.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<html>
  <head>
    <title>
      Exhibit 31.1
</title>
<!-- Licensed to: EdgarTech Filing Services-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
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</head>
  <body bgcolor="#ffffff">
    <div>&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
      <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
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    <div>&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibit
      31.1</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATION
      PURSUANT TO</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">I,
      Thomas
      Sandgaard, President, Chief Executive Officer and Treasurer of Zynex Medical
      Holdings, Inc, certify that:</font></div>
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            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">I
                have reviewed this quarterly report on Form 10-QSB of Zynex Medical
                Holdings, Inc;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, this report does not contain any untrue statement
                of a
                material fact or omit to state a material fact necessary to make
                the
                statements made, in light of the circumstances under which such statements
                were made, not misleading with respect to the period covered by this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, the financial statements, and other financial information
                included in this report, fairly present in all material respects
                the
                financial condition, results of operations and cash flows of the
                small
                business issuer as of, and for, the periods presented in this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                small business issuer's other certifying officer(s) and I are responsible
                for establishing and maintaining disclosure controls and procedures
                (as
                defined in Exchange Act Rules 13a-15(e) and 15d-15(d)) for the small
                business issuer and have:</font></div>
            </td>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(a)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">designed
                such disclosure controls and procedures, or caused such disclosure
                controls and procedures to be designed under our supervision, to
                ensure
                that material information relating to the small business issuer,
                including
                its consolidated subsidiaries, is made known to us by others within
                those
                entities, particularly during the period in which this report is
                being
                prepared;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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          <tr valign="top" style="line-height: 1.25;">
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            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(b)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">evaluated
                the effectiveness of the small business issuer's disclosure controls
                and
                procedures and presented in this report our conclusions about the
                effectiveness of the disclosure controls and procedures, as of the
                end of
                the period covered by this report based on such evaluation;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(c)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">disclosed
                in this report any change in the small business issuer's internal
                control
                over financial reporting that occurred during the small business
                issuer's
                most recent fiscal quarter (the small business issuer's fourth fiscal
                quarter in the case of an annual report) that has materially affected,
                or
                is reasonably likely to materially affect, the small business issuer's
                internal control over financial reporting;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                small business issuer's other certifying officer(s) and I have disclosed,
                based on our most recent evaluation of internal control over financial
                reporting, to the small business issuer's auditors and the audit
                committee
                of the small business issuer's board of directors (or persons performing
                the equivalent functions):</font></div>
            </td>
          </tr>

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      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(a)</font></div>
            </td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">all
                significant deficiencies and material weaknesses in the design or
                operation of internal control over financial reporting which are
                reasonably likely to adversely affect the small business issuer's
                ability
                to record, process, summarize and report financial information;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(b)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">any
                fraud, whether or not material, that involves management or other
                employees who have a significant role in the small business issuer's
                internal control over financial
                reporting.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dated&#160;November
                20, 2006</font></div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">/s/&#160;Thomas
                Sandgaard</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Thomas
                Sandgaard,</font></div>
            </td>
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          <tr>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">President
                and Chief Executive Officer,
                Treasurer</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>zynex10qsbex312_11182006.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<html>
  <head>
    <title>
      Exhibit 31.2
</title>
<!-- Licensed to: EdgarTech Filing Services-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
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  <body bgcolor="#ffffff">
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibit
      31.2</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATION
      PURSUANT TO</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">I,
      Peter
      J. Leveton, Chief Financial Officer of Zynex Medical Holdings, Inc, certify
      that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">I
                have reviewed this quarterly report on Form 10-QSB of Zynex Medical
                Holdings, Inc;</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Based
      on
      my knowledge, this report does not contain any untrue statement of a material
      fact or omit to state a material fact necessary to make the statements made,
      in
      light of the circumstances under which such statements were made, not misleading
      with respect to the period covered by this report;</font></div>
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          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">3.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, the financial statements, and other financial information
                included in this report, fairly present in all material respects
                the
                financial condition, results of operations and cash flows of the
                small
                business issuer as of, and for, the periods presented in this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                small business issuer's other certifying officer(s) and I are responsible
                for establishing and maintaining disclosure controls and procedures
                (as
                defined in Exchange Act Rules 13a-15(e) and 15d-15(d)) for the small
                business issuer and have:</font></div>
            </td>
          </tr>

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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(a)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">designed
                such disclosure controls and procedures, or caused such disclosure
                controls and procedures to be designed under our supervision, to
                ensure
                that material information relating to the small business issuer,
                including
                its consolidated subsidiaries, is made known to us by others within
                those
                entities, particularly during the period in which this report is
                being
                prepared;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(b)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">evaluated
                the effectiveness of the small business issuer's disclosure controls
                and
                procedures and presented in this report our conclusions about the
                effectiveness of the disclosure controls and procedures, as of the
                end of
                the period covered by this report based on such evaluation;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(c)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">disclosed
                in this report any change in the small business issuer's internal
                control
                over financial reporting that occurred during the small business
                issuer's
                most recent fiscal quarter (the small business issuer's fourth fiscal
                quarter in the case of an annual report) that has materially affected,
                or
                is reasonably likely to materially affect, the small business issuer's
                internal control over financial reporting;
                and</font></div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                small business issuer's other certifying officer(s) and I have disclosed,
                based on our most recent evaluation of internal control over financial
                reporting, to the small business issuer's auditors and the audit
                committee
                of the small business issuer's board of directors (or persons performing
                the equivalent functions):</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(a)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">all
                significant deficiencies and material weaknesses in the design or
                operation of internal control over financial reporting which are
                reasonably likely to adversely affect the small business issuer's
                ability
                to record, process, summarize and report financial information;
                and</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(b)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">any
                fraud, whether or not material, that involves management or other
                employees who have a significant role in the small business issuer's
                internal control over financial
                reporting.</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Dated&#160;November
                20, 2006</font></div>
            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">/s/&#160;
                Peter J. Leveton</font></div>
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                J. Leveton,</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></div>
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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>zynex10qsbex32_11182006.htm
<DESCRIPTION>EXHIBIT 32
<TEXT>
<html>
  <head>
    <title>
      Exhibit 32
</title>
<!-- Licensed to: EdgarTech Filing Services-->
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<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibit
      32</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">CERTIFICATION
      PURSUANT TO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">18
      U.S.C.
      SECTION 1350, AS ADOPTED PURSUANT TO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      undersigned, Thomas Sandgaard, President, Chief Executive Officer and Treasurer,
      and Peter J. Leveton, Chief Financial Officer of Zynex Medical Holdings, Inc.,
      hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></div>
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    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">the
                quarterly report on Form 10-QSB of Zynex Medical Holdings, Inc.,
                for the
                period ended June 30, 2006 (the &#8220;Report&#8221;) fully complies with the
                requirements of Section 13(a) or 15(d) of the Securities Exchange
                Act of
                1934; and</font></div>
            </td>
          </tr>

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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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</font></div>
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