<SEC-DOCUMENT>0001157523-14-003339.txt : 20140806
<SEC-HEADER>0001157523-14-003339.hdr.sgml : 20140806
<ACCEPTANCE-DATETIME>20140806161614
ACCESSION NUMBER:		0001157523-14-003339
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140806
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140806
DATE AS OF CHANGE:		20140806

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSGENOMIC INC
		CENTRAL INDEX KEY:			0001043961
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				911789357
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36439
		FILM NUMBER:		141020170

	BUSINESS ADDRESS:	
		STREET 1:		12325 EMMET ST
		CITY:			OMAHA
		STATE:			NE
		ZIP:			68164
		BUSINESS PHONE:		4027385480

	MAIL ADDRESS:	
		STREET 1:		12325 EMMET STREET
		CITY:			OMAHA
		STATE:			NE
		ZIP:			68164
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50920321.htm
<DESCRIPTION>TRANSGENOMIC, INC. 8-K
<TEXT>
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    <p style="text-align: center">
      <br>
      <br>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Pursuant
      to Section 13 or 15(d) of The Securities Exchange Act of 1934</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">Date of
      Report (Date of earliest event reported):</font><br><font style="font-size: 10pt; font-family: Times New Roman">August
      6, 2014</font><font style="font-size: 10pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 10pt"></font><br><br><u><font style="font-size: 12pt; font-family: Times New Roman">TRANSGENOMIC,
      INC.</font></u><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 33%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Delaware</u>
          </p>
        </td>
        <td style="width: 34%; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>000-30975</u>
          </p>
        </td>
        <td style="width: 33%; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>911789357</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 33%; padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State of incorporation)
          </p>
        </td>
        <td style="width: 34%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            File Number)
          </p>
        </td>
        <td style="width: 33%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Identification Number)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 60%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>12325 Emmet Street, Omaha, Nebraska</u>
          </p>
        </td>
        <td style="width: 40%; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>68164</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 60%; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="width: 40%; padding-left: 0.0px; text-align: center" valign="bottom">
          <font style="font-family: Times New Roman; font-size: 10pt">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <u><font style="font-family: Times New Roman; font-size: 10pt">(402)
      452-5400</font></u><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-size: 10pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 10pt">(Registrant&#8217;s
      telephone number, including area code)</font><br><br><br><u>Not
      applicable</u><br><font style="font-family: Times New Roman; font-size: 10pt">(Former
      name or former address, if changed since last report)</font>
    </p>
    <p>

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><br>
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: justify">
      <b>Item 2.02. &#160;Results of Operations and Financial Condition.</b>
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      On August 6, 2014, Transgenomic, Inc. issued a press release announcing
      its financial results for the second quarter 2014.&#160;&#160;A copy of the press
      release is being furnished herewith as Exhibit 99.1 to this Current
      Report on Form 8-K.
    </p>
    <p style="text-indent: 30.0px; text-align: justify">
      The information referenced in this Current Report on Form 8-K (including
      Exhibit 99.1 referenced in Item&#160;9.01 below) is being &#8220;furnished&#8221; under
      &#8220;Item 2.02. Results of Operations and Financial Condition&#8221; and, as such,
      shall not be deemed to be &#8220;filed&#8221; for the purposes of Section 18 of the
      Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), or
      otherwise subject to the liabilities of that Section.&#160;&#160;The information
      set forth in this Current Report on Form 8-K (including Exhibit 99.1
      referenced in Item 9.01 below) shall not be incorporated by reference
      into any registration statement or other document pursuant to the
      Securities Act of 1933, as amended (the&#160;&#8220;Securities Act&#8221;), except as
      shall be expressly set forth by specific reference in such filing.
    </p>
    <p style="white-space: nowrap; text-align: justify">
      <b>Item 9.01.&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
    <p style="white-space: nowrap; text-align: justify">
      (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits.
    </p>
    <p style="white-space: nowrap; text-align: justify">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(99.1)&#160;&#160;&#160;&#160;Press release dated August 6, 2014, announcing
      Transgenomic, Inc.&#8217;s financial results for the second quarter 2014.
    </p>
    <p>
      <br>
      <br>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, as amended, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
<div style="text-align:left">
    <table style="width: 100%; margin-bottom: 10.0px; font-size: 10pt; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="width: 6%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td style="width: 44%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            August 6, 2014
          </p>
        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            TRANSGENOMIC, INC.
          </p>
        </td>
      </tr>
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        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
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        <td style="width: 6%; padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="width: 44%">

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 6%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 44%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 4%; padding-left: 0.0px; text-align: left" valign="top">
          By:
        </td>
        <td style="width: 46%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>/s/ Mark P. Colonnese</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 46%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Mark P. Colonnese
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 46%; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      2
    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a50920321ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <title></title>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Transgenomic
      Reports Second Quarter 2014 Financial Results</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Conference
      Call to Be Held at 5:00 PM Eastern Time Today</b></font>
    </p>
    <p>
      OMAHA, Neb.--(BUSINESS WIRE)--August 6, 2014--<b>Transgenomic, Inc.
      (NASDAQ:TBIO)</b> today reported financial results for the second
      quarter ended June 30, 2014, and provided a business update.
    </p>
    <p>
      <u><b>Second Quarter Financial Results</b></u>
    </p>
    <p>
      Net sales for the second quarter of 2014 were $6.8 million compared with
      $7.3 million for the same period in 2013. The year-to-year decline is
      attributable to a $0.3 million decrease in the Genetic Assays and
      Platforms segment, due to fewer instrument sales, and a $0.2 million
      decrease in the Laboratory Services segment, resulting from lower sales
      of contract development services to pharmaceutical clients. Partially
      offsetting the decline in contract lab services were higher sales of
      patient tests, spurred by a number of new products launched in late
      2013. Net sales in the second quarter of 2014 showed a nearly
      double-digit increase over net sales in the first quarter of 2014,
      including a second consecutive quarter of increases in the patient
      testing business.
    </p>
    <p>
      Gross profit was $2.4 million, or 35 percent of net sales, compared with
      gross profit of $3.0 million or 41 percent of net sales for the same
      period in 2013. Gross profit decreased approximately $0.6 million as a
      result of fewer instrument sales in the Genetic Assays and Platforms
      segment and the impact of lower sales in the Laboratory Services segment.
    </p>
    <p>
      Operating expenses were $6.3 million during the second quarter of 2014,
      compared with $5.9 million in the prior year. The increase in operating
      expenses was primarily due to higher non-cash stock compensation costs
      and a higher bad debt provision in the second quarter of 2014 as
      compared to the second quarter of 2013.
    </p>
    <p>
      In the second quarter of both 2014 and 2013, there was $0.2 million of
      non-cash income related to warrant revaluation. This income for each
      period resulted from a lower value being assigned to the warrants.
    </p>
    <p>
      The net loss for the second quarter of 2014 was $3.9 million or $0.57
      per share, compared with a net loss of $2.9 million or $0.41 per share
      for the second quarter of 2013.
    </p>
    <p>
      Modified EBITDA, which is a non-GAAP measure that Transgenomic views as
      an appropriate and sound measure of the Company's results, was a loss of
      $3.2 million for the second quarter of 2014, compared to a $2.2 million
      loss for the same period in 2013. A reconciliation of Net Loss to
      Modified EBITDA is presented below.
    </p>
    <p>
      Cash and cash equivalents were $1.2 million as of June 30, 2014,
      compared with $1.6 million as of December 31, 2013. After the close of
      the quarter, in July 2014, the Company sold the rights to its SURVEYOR
      Nuclease technology and assets for a minimum of $4.25 million. The net
      proceeds from this sale will be used to pay down debt under the
      Company&#8217;s revolving credit facility, which may be redrawn as needed, and
      for working capital and other general corporate purposes.
    </p>
    <p>
      <u><b>Six Month Financial Results</b></u>
    </p>
    <p>
      Net sales for the six months ended June 30, 2014 were $13.0 million
      compared with $14.7 million for the same period in 2013. The decline
      includes an 11 percent decrease in the Laboratory Services segment,
      which resulted from lower sales of contract laboratory services and from
      a higher than usual level of sales in the first half of 2013 that
      resulted from working down a backlog of Nuclear Mitome tests from the
      previous year. These decreases were partially offset by higher sales of
      patient tests, reflecting revenues from a number of new products
      launched in late 2013, and a continuing increase in revenues from our
      core patient testing products. In the Genetic Assays and Platforms
      segment, net sales for the six months ended June 30, 2014 declined 12
      percent as compared to the same period in 2013 as a result of fewer
      instrument sales.
    </p>
    <div style="width: 100%; margin-bottom: 10pt; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Gross profit was $4.9 million or 38 percent of net sales, compared with
      gross profit of $6.2 million, or 42 percent of net sales, for the same
      period in 2013. The decrease was largely attributable to the impact of
      lower sales of contract laboratory services and fewer instrument sales
      in the Genetic Assays and Platforms segment.
    </p>
    <p>
      Operating expenses were $12.4 million during the first half of 2014,
      compared with $13.0 million in the first half of 2013. The decrease is
      mainly due to lower bad debt provisions in the first half of 2014 as
      compared to 2013, along with lower salaries and employee-related costs
      due to a mid-year 2013 reduction in our Laboratory Services sales force.
      These decreases were partially offset by increased non-cash stock
      compensation costs.
    </p>
    <p>
      For the six months ended June 30, 2014 and 2013, non-cash income related
      to warrant revaluation was $0.3 million and $0.6 million, respectively.
    </p>
    <p>
      The net loss for the six months ended June 30, 2014 was $8.1 million or
      $1.17 per share compared with a net loss of $6.5 million, or $0.95 per
      share, for the comparable period of 2013.
    </p>
    <p>
      Paul Kinnon, President and Chief Executive Officer of Transgenomic,
      commented, &#8220;During the second quarter, we continued to make progress
      putting in place the elements needed to reach our goal of creating a
      revitalized company. Operationally, our patient testing business
      continues to show renewed strength, with revenues again growing
      sequentially quarter over quarter. We expect that this trend will
      continue in the third quarter, along with growth from new projects in
      our contract services laboratory.&#8221;
    </p>
    <p>
      Mr. Kinnon continued, &#8220;Strategically, we have executed on a number of
      actions that illustrate our roadmap for creating shareholder value.
      Importantly, during the quarter the company finalized two transactions
      that are foundational to our strategy. The first was our exclusive
      license from Dana-Farber Cancer Institute for the multiplexed version of
      our groundbreaking ICE COLD-PCR<sup>TM</sup> technology, which makes
      possible the simultaneous detection of multiple DNA mutations from a
      single liquid sample, such as blood or urine, or from tissue.
      Multiplexing makes ICE COLD-PCR far more efficient and allows us to
      assemble targeted panels of relevant mutations, which should greatly
      increase its utility for routine use in cancer therapy, as well as for
      biopharmaceutical customers who will use the technology to develop new
      cancer treatments and companion diagnostics.&#8221;
    </p>
    <p>
      &#8220;The second transaction involved the redeployment of a non-core asset,&#8221;
      said Mr. Kinnon. &#8220;The sale of our SURVEYOR Nuclease technology to IDT
      for the research market allows us to focus more resources on
      commercialization efforts in our core businesses. By licensing back
      exclusive rights to clinical and diagnostic uses, we ensured our
      continued access to SURVEYOR in high value applications. The
      monetization of this asset will also contribute to the expedited
      development and commercialization of ICE COLD-PCR. Other actions during
      the quarter included our uplisting to NASDAQ, which is important
      symbolically and also brings the company enhanced visibility and
      liquidity. We also added to our Board another outstanding business
      leader with extensive life science experience&#8212;the second high-caliber
      individual we have recruited in the past few months.&#8221;
    </p>
    <p>
      Mr. Kinnon concluded, &#8220;We are optimistic that the company&#8217;s turnaround
      is well underway. In the coming months we intend to share more
      information with respect to our commercialization plans for key parts of
      the business, including ICE COLD-PCR technology that we believe has
      great transformative potential.&#8221;
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

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        <div style="text-align: center">

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          <hr style="height: 1.5pt; color: black">

        </div>
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        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <u><b>Recent Highlights</b></u>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <i><b>TBIO Sells Rights to Surveyor Mutation Detection Technology and
        Assets to Integrated DNA Technologies: </b></i>On July 2, 2014,
        Transgenomic announced that it had entered into an agreement to sell
        to Integrated DNA Technologies, Inc. (IDT) rights to its SURVEYOR
        Nuclease technology and assets for a minimum of $4.25 million. As part
        of the agreement, IDT is exclusively sublicensing rights for all
        clinical and diagnostic applications of the technology back to
        Transgenomic. This sale to IDT for the non-core research market allows
        the company<i><b> </b></i>to focus resources on its core businesses
        while securing access to the technology for high value clinical and
        pharmaceutical applications.
      </li>
      <li style="margin-bottom: 10.0px">
        <i><b>Collaborative Studies Validating Transgenomic's ICE COLD-PCR
        Technology Highlighted at ASCO: </b></i>The potential of the ICE
        COLD-PCR technology was highlighted in scientific study materials
        displayed at Transgenomic&#8217;s booth at the 2014 ASCO Annual Meeting in
        late May, 2014. The studies provide further validation of key features
        of ICE COLD-PCR technology and were conducted by company researchers
        along with scientists at the University of Texas MD Anderson Cancer
        Center and the Dana-Farber Cancer Institute.
      </li>
      <li style="margin-bottom: 10.0px">
        <i><b>Transgenomic Licenses Exclusive Rights to Multiplexed ICE
        COLD-PCR Technology: </b></i>On May 28, 2014, the company announced an
        exclusive license with the Dana-Farber Cancer Institute for worldwide
        rights to develop and commercialize multiplexed versions of ICE
        COLD-PCR technology. The exclusive license covers all fields and
        applications of the technology, which makes possible the simultaneous
        detection of multiple DNA mutations from a single blood, urine or
        tissue sample. Multiplexing makes ICE COLD-PCR technology far more
        efficient, which should greatly increase its utility for routine use
        in cancer therapy and in new drug development.
      </li>
      <li style="margin-bottom: 10.0px">
        <i><b>John D. Thompson Joins Transgenomic&#8217;s Board of Directors: </b></i>On
        May 15, 2014, Transgenomic announced John Thompson&#8217;s appointment as a
        director. Mr. Thompson was an influential strategist and dealmaker at
        top tier life sciences firms such as Invitrogen and Life Technologies.
        He brings extensive experience in life sciences business development,
        corporate strategy and mergers and acquisitions to Transgenomic.
      </li>
      <li style="margin-bottom: 10.0px">
        <i><b>Transgenomic Uplists to NASDAQ Capital Market:</b></i>
        Transgenomic achieved a major goal when its uplisting to the NASDAQ
        Capital Market became effective on May 9, 2014. The move to a major
        organized stock exchange is expected to benefit shareholders through
        the company&#8217;s greater visibility, access to capital, and increased
        share liquidity.
      </li>
      <li style="margin-bottom: 10.0px">
        <i><b>Transgenomic Announces Collaboration with Raptor Pharmaceuticals
        for Genetic Testing Services: </b></i>On April 4, 2014, Transgenomic
        announced an agreement with Raptor Pharmaceuticals to provide genetic
        testing services for Raptor&#8217;s clinical trial evaluating RP103 as a
        potential treatment for Leigh syndrome and other inherited
        mitochondrial disorders. This agreement is an example of how
        Transgenomic is working with pharmaceutical companies to employ
        complementary genetic tests designed to improve clinical diagnoses and
        outcomes.
      </li>
    </ul>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <u><b>Conference Call</b></u>
    </p>
    <p>
      Transgenomic management will host a conference call to discuss second
      quarter 2014 financial results and answer questions beginning at 5:00
      p.m. Eastern Time today. To access the call via telephone, please dial
      866-952-1908 from the U.S. or Canada or 785-424-1827 for international
      participants and enter conference ID TRANS. The call also will be
      broadcast live over the Internet. To listen to the webcast, please log
      onto the Company's Investor Relations web page at <u>http://world.transgenomic.com/investor-relations/quarterly-conference-calls</u>
      and follow the instructions. An archived webcast of the call will be
      available for 30 days. A telephone replay will be available from 8:00
      p.m. Eastern Time on August 6, 2014 through 11:59 p.m. Eastern Time on
      August 20, 2014 by dialing 800-723-1517 (domestic) or 402-220-2659
      (international).
    </p>
    <p>
      <u><b>About Transgenomic</b></u><br><u>Transgenomic, Inc</u>. is a
      global biotechnology company applying sophisticated diagnostic
      technologies and products, such as its revolutionary ICE COLD-PCR<sup>TM</sup>,
      to advance personalized medicine in cardiology, oncology, and inherited
      diseases. The company offers a portfolio of unique genetic tests through
      its Patient Testing services business, provides specialized genomic
      clinical and research services to biopharmaceutical companies developing
      targeted therapies, and sells equipment, reagents and other consumables
      for applications in molecular testing and cytogenetics. Transgenomic&#8217;s
      diagnostic technologies and products are designed to improve medical
      diagnoses and patient outcomes in measureable ways.
    </p>
    <p>
      <u><b>Forward-Looking Statements</b></u><br>Certain statements in this
      press release constitute &#8220;forward-looking statements&#8221; of Transgenomic
      within the meaning of the Private Securities Litigation Reform Act of
      1995, which involve known and unknown risks, uncertainties and other
      factors that may cause actual results to be materially different from
      any future results, performance or achievements expressed or implied by
      such statements. Forward-looking statements include, but are not limited
      to, those with respect to management's current views and estimates of
      future economic circumstances, industry conditions, company performance
      and financial results, including the ability of the Company to grow its
      involvement in the diagnostic products and services markets. The known
      risks, uncertainties and other factors affecting these forward-looking
      statements are described from time to time in Transgenomic's filings
      with the Securities and Exchange Commission. Any change in such factors,
      risks and uncertainties may cause the actual results, events and
      performance to differ materially from those referred to in such
      statements. Accordingly, the Company claims the protection of the safe
      harbor for forward-looking statements contained in the Private
      Securities Litigation Reform Act of 1995 with respect to all statements
      contained in this press release. All information in this press release
      is as of the date of the release and Transgenomic does not undertake any
      duty to update this information, including any forward-looking
      statements, unless required by law.
    </p>
    <p>
      CONTACT:<br><i><b>Investor Contact</b></i><br>Argot Partners<br>Susan
      Kim, 212-600-1902<br><u>susan@argotpartners.com</u><br>or<br><i><b>Media
      Contact</b></i><br>BLL Partners<br>Barbara Lindheim, 212-584-2276<br><u>blindheim@bllbiopartners.com</u><br>or<br><i><b>Company
      Contact</b></i><br>Transgenomic, Inc.<br>Mark Colonnese, 203-907-2242<br>EVP
      and CFO<br><u>investorrelations@transgenomic.com</u>
    </p>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; width: 100%; font-size: 8pt; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="21">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="21" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>TRANSGENOMIC, INC. AND SUBSIDIARY</b>
        </td>
      </tr>
      <tr>
        <td colspan="21" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b>
        </td>
      </tr>
      <tr>
        <td colspan="21" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>(Dollars in thousands except per share data)</b>
        </td>
      </tr>
      <tr>
        <td colspan="21">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>Three Months Ended</b>
        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>Six Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="8" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center" valign="bottom">
          <b>June 30,</b>
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: center" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="8" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center" valign="bottom">
          <b>June 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2014</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2013</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2014</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2013</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>NET SALES:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Laboratory Services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          3,843
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          4,012
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,531
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          8,439
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Genetic Assays and Platforms
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          2,921
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          3,294
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          5,484
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,241
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,764
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,306
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          13,015
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          14,680
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>COST OF GOODS SOLD</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          4,371
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          4,333
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          8,128
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          8,452
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>GROSS PROFIT</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          2,393
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          2,973
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          4,887
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,228
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>OPERATING EXPENSES:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Selling, general and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          5,563
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          4,982
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          10,851
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          11,294
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          785
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          913
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,530
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,677
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,348
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          5,895
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          12,381
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          12,971
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>LOSS FROM OPERATIONS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (3,955
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (2,922
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (7,494
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (6,743
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>OTHER INCOME (EXPENSE):</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Interest expense, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (146
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (151
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (328
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (304
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Change in fair value of warrants
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          200
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          200
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          250
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          600
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Other, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          53
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          54
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          49
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (78
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          349
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>LOSS BEFORE INCOME TAXES</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (3,901
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (2,873
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (7,572
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (6,394
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>INCOME TAX (BENEFIT) EXPENSE</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (8
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (6
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          497
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          60
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>NET LOSS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (3,893
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (2,867
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (8,069
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (6,454
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>PREFERRED STOCK DIVIDENDS AND ACCRETION</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (305
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (181
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (535
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (362
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>NET LOSS AVAILABLE TO COMMON STOCKHOLDERS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (4,198
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (3,048
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (8,604
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (6,816
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>BASIC AND DILUTED LOSS PER COMMON SHARE</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (0.57
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (0.41
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (1.17
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          (0.95
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>BASIC AND DILUTED WEIGHTED AVERAGE SHARES OF COMMON STOCK
          OUTSTANDING</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,353,695
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,353,810
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,353,695
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,178,028
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <b>Transgenomic, Inc.</b><br><b>Summary Financial Results</b><br><b>Proforma
      Modified EBITDA</b><br><b>(dollars in thousands)</b>
    </p>
    <p>
      Management uses Modified EBITDA, a non-GAAP measure, to measure the
      Company's financial performance and to internally manage its businesses.
      Management believes that Modified EBITDA provides useful information to
      investors as a measure of comparison with peer and other companies.
      Modified EBITDA should not be considered an alternative to, or more
      meaningful than, net income or cash flow as determined in accordance
      with generally accepted accounting principles. Modified EBITDA
      calculations may vary from company to company. Accordingly, our
      computation of Modified EBITDA may not be comparable with a
      similarly-titled measure of another company.
    </p>
    <p>
      The following sets forth the reconciliation of Net Loss to Modified
      EBITDA for the periods indicated:
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; width: 100%; font-size: 8pt; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="8">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="8">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>Three Months Ended</b>
        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>Six Months Ended</b>
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="8" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center" valign="bottom">
          <b>June 30,</b>
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: center" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="8" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center" valign="bottom">
          <b>June 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2014</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2013</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2014</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2013</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>NET LOSS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(3,893</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(2,867</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(8,069</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>$</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(6,454</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>INTEREST EXPENSE</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>146</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>151</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>328</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>304</b>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>INCOME TAX (BENEFIT) EXPENSE</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(8</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(6</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>497</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>60</b>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>DEPRECIATION AND AMORTIZATION</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>488</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>687</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>981</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>1,431</b>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>CHANGE IN FAIR VALUE OF WARRANTS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(200</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(200</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(250</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(600</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>STOCK COMPENSATION EXPENSE</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>306</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(2</b>
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>637</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>162</b>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>MODIFIED EBITDA</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(3,161</b>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>$</b>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(2,237</b>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>$</b>
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(5,876</b>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>$</b>
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          <b>(5,097</b>
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: left; padding-right: 0.0px" valign="bottom">
          <b>)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; width: 100%; font-size: 8pt; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="9" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>TRANSGENOMIC, INC. AND SUBSIDIARY</b>
        </td>
      </tr>
      <tr>
        <td colspan="9" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
        </td>
      </tr>
      <tr>
        <td colspan="9" style="padding-left: 0.0px; text-align: center" valign="top">
          <b>(Dollars in thousands)</b>
        </td>
      </tr>
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>(unaudited)</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>June 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2014</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          <b>2013</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>CURRENT ASSETS:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,191
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,626
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          7,298
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          5,314
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Inventories, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          4,009
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          3,957
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          879
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          938
        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="bottom">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          13,377
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          11,835
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>PROPERTY AND EQUIPMENT, NET</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,836
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          2,003
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>OTHER ASSETS:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Goodwill
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,918
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,918
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Intangibles, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          8,665
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          9,195
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          295
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          327
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          31,091
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          30,278
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="bottom">
          <b>LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>CURRENT LIABILITIES</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          9,761
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          8,625
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>OTHER LIABILITIES:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Long term debt, less current maturities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,211
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          6,318
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Common stock warrant liability
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          350
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          600
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Accrued preferred stock dividend
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          2,521
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,986
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Other long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,897
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          1,303
        </td>
      </tr>
      <tr>
        <td style="padding-left: 30.0px; text-align: left" valign="bottom">
          Total liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          20,740
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          18,832
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          <b>STOCKHOLDERS&#8217; EQUITY</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          10,351
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          11,446
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          31,091
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: center; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="border-bottom: double black 2.25pt; white-space: nowrap; padding-left: 0.0px; text-align: right; padding-right: 0.0px" valign="bottom">
          30,278
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p>

    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
