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<SEC-DOCUMENT>0000944075-06-000012.txt : 20060214
<SEC-HEADER>0000944075-06-000012.hdr.sgml : 20060214
<ACCEPTANCE-DATETIME>20060214165454
ACCESSION NUMBER:		0000944075-06-000012
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20051231
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060214
DATE AS OF CHANGE:		20060214

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13810
		FILM NUMBER:		06616558

	BUSINESS ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
		BUSINESS PHONE:		5107442700

	MAIL ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0206.htm
<TEXT>
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<!-- saved from url=(0086)file://N:\SECINFO\STMNTS\SEC\2003_1022_8K_PressReleaseQ3Earnings\EDGAR\form-8k1003.htm -->
<HTML><HEAD><TITLE>Untitled Document</TITLE>

<BODY bgColor=#ffffff>
<DIV align=left>
<HR>

<DIV align=center><FONT face="Times New Roman, Times, serif" size=3><B><FONT
size=4>UNITED STATES<BR></FONT></B></FONT><FONT
face="Times New Roman, Times, serif" size=4><STRONG>SECURITIES AND EXCHANGE
COMMISSION</STRONG></FONT></DIV></DIV>
<P align=center><FONT face="Times New Roman, Times, serif" size=3>Washington,
D.C. 20549<BR><BR><BR><B>FORM 8-K</B><BR><BR><BR></FONT><FONT
face="Times New Roman, Times, serif" size=3><B>CURRENT REPORT</B><BR></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=3>Pursuant to
Section 13 or 15(d) of </FONT><FONT face="Times New Roman, Times, serif"
size=3>the Securities Exchange Act of 1934<BR><B><BR></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=3><B>February
  14 </B></FONT><B><FONT face="Times New Roman, Times, serif" size=3>, 2006</FONT></B><FONT face="Times New Roman, Times, serif" size=3><BR>
  Date of
Report <BR>
  <font size="2">(date of earliest event reported)</font></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif"
size=3><BR></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=5><STRONG><FONT
size=4>SOCKET COMMUNICATIONS, INC. </FONT></STRONG></FONT><FONT
face="Times New Roman, Times, serif"><BR><FONT size=2>(Exact name of Registrant
as specified in its charter) </FONT></FONT></P>
<P>&nbsp;
<TABLE cols=3 width="100%">

  <TR>
    <TD height=30 width="37%">
      <CENTER><FONT face="Times New Roman, Times, serif" size=3>Delaware
      </FONT></CENTER></TD>
    <TD height=30 width="26%">
      <CENTER><FONT face="Times New Roman, Times, serif" size=3>001-13810
      </FONT></CENTER></TD>
    <TD height=30 width="37%">
      <CENTER><FONT face="Times New Roman, Times, serif" size=3>94-3155066
      </FONT></CENTER></TD></TR>
  <TR>
    <TD width="37%">
      <CENTER><FONT face="Times New Roman, Times, serif" size=2>(State or other
      jurisdiction of incorporation) </FONT></CENTER></TD>
    <TD width="26%">
      <CENTER><FONT face="Times New Roman, Times, serif" size=2>(Commission File
      Number) </FONT></CENTER></TD>
    <TD width="37%">
      <CENTER><FONT face="Times New Roman, Times, serif" size=2>(IRS employer
      identification number) </FONT></CENTER></TD></TR>
  </TABLE><FONT
face="Times New Roman, Times, serif"><BR></FONT>
<P align=center><FONT face="Times New Roman, Times, serif" size=3>37400 Central
Court<BR>Newark, CA 94560</FONT><FONT
face="Times New Roman, Times, serif"><BR><FONT size=2>(Address of principal
executive offices, including zip code) </FONT></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=3>(510) 744-2700
</FONT><FONT face="Times New Roman, Times, serif"><BR><FONT size=2>(Registrant's
telephone number, including area code) <BR><BR><BR></FONT></FONT></P>
<DIV align=left></DIV>
<DIV align=left>
<HR>
</DIV><BR>
<P><FONT face="Times New Roman, Times, serif"><B>ITEM 2.02 RESULTS OF OPERATIONS
  AND FINANCIAL CONDITION</B><BR>
  </FONT></P>
<P><font face="Times New Roman, Times, serif" size="3">On February 14, 2006, Socket
  Communications, Inc. issued a press release reporting its results for the three
  months and year ended December 31, 2005. A copy of the press release is furnished
  as Exhibit 99.1.</font><FONT
face="Times New Roman, Times, serif"><BR>
  </FONT></P>
<P><FONT face="Times New Roman, Times, serif"><B>ITEM 9.01. FINANCIAL STATEMENTS
  AND EXHIBITS</B><BR>
  </FONT></P>
<P><FONT face="Times New Roman, Times, serif">(c) Exhibits.</FONT><FONT
face="Times New Roman, Times, serif"></FONT><FONT
face="Times New Roman, Times, serif"></FONT></P>
<P>&nbsp;</P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=left border=0>

  <TR vAlign=bottom>
    <TD width=215 height=54>
      <DIV align=center><FONT face="Times New Roman, Times, serif">Exhibit
      Number</FONT></DIV></TD>
    <TD width=29 height=54>&nbsp;</TD>
    <TD width=680 height=54>
      <DIV align=center><FONT
      face="Times New Roman, Times, serif">Description</FONT></DIV></TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=middle width=215>----------------------------</TD>
    <TD width=29>&nbsp;</TD>
    <TD width=680>
      <DIV
      align=center>----------------------------------------------------------------------------------------------------------------------</DIV>
    </TD></TR>
  <TR vAlign=top>
    <TD width=215>
      <DIV align=center><FONT
      face="Times New Roman, Times, serif">99.1</FONT></DIV></TD>
    <TD width=29>&nbsp;</TD>
    <TD width=680><FONT face="Times New Roman, Times, serif">Text of press release,
      dated February 14, 2006, titled "</FONT>Socket Communications Reports 2005
      Fourth Quarter &amp; Year-End Financial Results&quot;.</TD>
  </TR>
  </TABLE>
<P>&nbsp;</P>
<P><FONT face="Times New Roman, Times, serif" size=3><BR></FONT></P>
<P><FONT face="Times New Roman, Times, serif" size=3><BR></FONT></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P> </P>
<HR>

<P align=center><FONT
face="Times New Roman, Times, serif"><B>SIGNATURE</B><BR></FONT></P>
<P><FONT face="Times New Roman, Times, serif">Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly
authorized.</FONT><FONT face="Times New Roman, Times, serif"
size=3><BR></FONT></P>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<BLOCKQUOTE><TR><TD>&nbsp;</TD> <TD>&nbsp;</TD> </TR><TR><TD>&nbsp;</TD>
  <TD>&nbsp;</TD> </TR><TR><TD>&nbsp;</TD> <TD>&nbsp;</TD>
  </TR><TR><TD>&nbsp;</TD> <TD>&nbsp;</TD> </TR><TR><TD>&nbsp;</TD>
  <TD>&nbsp;</TD> </TR><TR><TD>&nbsp;</TD> <TD>&nbsp;</TD>
  </TR><TR><TD>&nbsp;</TD> <TD>&nbsp;</TD> </TR><TR><TD>&nbsp;</TD>
  <TD>&nbsp;</TD> </TR>
  <P align=left> </P><TR valign="bottom"
align="left"></TR></BLOCKQUOTE></DIR></DIR></DIR></DIR></DIR>
<DIV align=left>
  <TABLE height=135 cellSpacing=0 cellPadding=0 width=847 align=left border=0>

    <TR>
      <TD width=470>
        <DIV align=left></DIV>
      </TD>
      <TD width=23>&nbsp;</TD>
      <TD width=348><font face="Times New Roman, Times, serif"><B>SOCKET COMMUNICATIONS,
        INC.</B></font></TD>
    </TR>
    <TR>
      <TD width=470>&nbsp;</TD>
      <TD width=23>&nbsp;</TD>
      <TD width=348><font face="Times New Roman, Times, serif">(Registrant)</font></TD>
    </TR>
    <TR>
      <TD width=470>&nbsp;</TD>
      <TD width=23>&nbsp;</TD>
      <TD width=348>&nbsp;</TD>
    </TR>
    <TR>
      <TD width=470>
        <DIV align=left></DIV>
      </TD>
      <TD width=23>&nbsp;</TD>
      <TD width=348>&nbsp;</TD>
    </TR>
    <TR>
      <TD width=470 height=19>
        <DIV align=left><FONT face="Times New Roman, Times, serif">Date: February
          14, 2006</FONT></DIV>
      </TD>
      <TD width=23 height=19><FONT
      face="Times New Roman, Times, serif">By:</FONT></TD>
      <TD width=348 height=19><FONT face="Times New Roman, Times, serif"><U>/s/
        David W. Dunlap</U></FONT></TD>
    </TR>
    <TR>
      <TD width=470 height=69>
        <DIV align=left></DIV>
      </TD>
      <TD width=23 height=69>&nbsp;</TD>
      <TD width=348 height=69><FONT face="Times New Roman, Times, serif">David
        W. Dunlap<BR>
        Vice President, Finance and Administration <BR>
        and Chief Financial Officer<BR>
        </FONT></TD>
    </TR>

  </TABLE>
</DIV>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<HR>

<P align=center><FONT face="Times New Roman, Times, serif"><B>EXHIBIT
INDEX</B></FONT></P>
<P align=center>&nbsp;</P>
<table cellspacing=0 cellpadding=0 width="100%" align=left border=0>
  <tr valign=bottom>
    <td width=215 height=54>
      <div align=center><font face="Times New Roman, Times, serif">Exhibit Number</font></div>
    </td>
    <td width=29 height=54>&nbsp;</td>
    <td width=680 height=54>
      <div align=center><font
      face="Times New Roman, Times, serif">Description</font></div>
    </td>
  </tr>
  <tr valign=top>
    <td valign=top align=middle width=215>----------------------------</td>
    <td width=29>&nbsp;</td>
    <td width=680>
      <div
      align=center>---------------------------------------------------------------------------------------------------------------------</div>
    </td>
  </tr>
  <tr valign=top>
    <td width=215 height="26">
      <div align=center><font
      face="Times New Roman, Times, serif">99.1</font></div>
    </td>
    <td width=29 height="26">&nbsp;</td>
    <td width=680 height="26"><font face="Times New Roman, Times, serif">Text
      of press release, dated February 14, 2006, titled "</font>Socket Communications
      Reports 2005 Fourth Quarter &amp; Year-End Financial Results&quot;.</td>
  </tr>
</table>
<P>&nbsp;</P>
<P align=center>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<HR>

<P>&nbsp;</P>
<DIV align=left>
<DIV align=left></DIV></DIV></BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1 CHARTER
<SEQUENCE>2
<FILENAME>pressrelease.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman, Times, serif" size="3"><b>Exhibit
  99.1</b></font></p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3"><b><font size="4">For Immediate
  Release</font></b></font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0" align="left">
  <tr valign="bottom">
    <td width="362" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>US
      Editorial Contact:</u></b></font></td>
    <td width="481" height="25">&nbsp;</td>
    <td width="362" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>Investor
      Relations Contact:</u></b></font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="25"><font face="Times New Roman, Times, serif" size="3">Cara
      Sloman </font></td>
    <td width="481" height="25"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp</font></td>
    <td width="362" height="25"><font face="Times New Roman, Times, serif" size="3">Todd
      Kehrli or Jim Byers</font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">Nadel
      Phelan for Socket Communications</font></td>
    <td width="481" height="20"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp</font></td>
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">MKR
      Group, LLC</font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">831/440-2411
      </font></td>
    <td width="481" height="20"><font face="Times New Roman, Times, serif" size="3">&nbsp;&nbsp</font></td>
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">818/556-3700
      </font></td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20">cara@nadelphelan.com</td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">ir@mkr-group.com</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20">&nbsp;</td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="25"><font face="Times New Roman, Times, serif" size="3"><b><u>European
      Editorial Contact:</u></b></font></td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="25"><font face="Times New Roman, Times, serif" size="3">Anna
      Andersson </font></td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">Open2Europe
      for Socket Communications</font></td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20"><font face="Times New Roman, Times, serif" size="3">+33
      1 55 02 14 54</font></td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="362" height="20">a.andersson@open2europe.com</td>
    <td width="481" height="20">&nbsp;</td>
    <td width="362" height="20">&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p><p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b><font size="5"><br>
  Socket Communications Reports 2005 Fourth Quarter<br>
  &amp; Year-End Financial Results</font></b><br>
  <br>
  </font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="3"> </font><font face="Times New Roman, Times, serif" size="3"><b>
  NEWARK, Calif., - February 14, 2006</b> - Socket Communications, Inc. (NASDAQ:
  SCKT), an innovative provider of data collection and connectivity products for
  the mobile workforce, today reported results for the fourth quarter and year
  ended December 31, 2005.</font></p>
<p>For the year 2005, Socket reported annual revenue of $25.0 million, compared
  to revenue of $26.1 million in 2004. Net loss applicable to common stockholders
  for 2005 was $215,000, or $0.01 per share, compared to net income applicable
  to common stockholders of $288,000, or $0.01 per share, for 2004. Socket generated
  cash flow from operations of $2.2 million in 2005, compared to negative cash
  flow of $603,000 in 2004. Cash and cash equivalents were approximately $6.8
  million at December 31, 2005, an increase of 15% compared to $5.9 million as
  of December 31, 2004.</p>
<p>Revenue for the fourth quarter of 2005 was $5.9 million, compared to revenue
  of $6.5 million for the same quarter a year ago. Net loss applicable to common
  stockholders for the fourth quarter was $252,000, or $0.01 per share, compared
  to net income applicable to common stockholders of $116,000, or $0.00 per share,
  in the fourth quarter of 2004.</p>
<p>"While 2005 was a challenging year, we believe that there is significant opportunity
  ahead as enterprise workforce customers continue to make mobile productivity
  solutions a top priority," said Kevin Mills, president and chief executive officer
  of Socket Communications. "An increasing number of companies are recognizing
  the benefits of using mobile hand held devices and mobile platforms to enhance
  the productivity of their mobile workforce. Our customers' transition to the
  Windows Mobile 5.0 operating system and new Pocket PC models contributed to
  diminished sales in 2005, most notably impacting sales of our data collection
  products due to the long lead times for testing and applications development.
  We believe the product deployment delays resulting from these transitions will
  continue to impact the Company until completed."</p>
<p>"We continue to expand our family of data collection products and develop innovative
  new hardware and software products for mobile devices. Our recently introduced
  Cordless Ring Scanner, an efficient and uniquely designed hands-free laser bar
  code scanner, is now available and will be shipping in production quantities
  in March of this year. Additionally, the Palm Treo Smartphone's utilization
  of the Windows Mobile operating system opens new market opportunities to drive
  sales of Socket's supporting applications, including our Wi-Fi Companion software
  and SDIO wireless LAN connection card. Our Strategic Vertical Integrator (SVI)
  developer program now includes more than 70 partners that are integrating our
  data collection products into a variety of mobile enterprise applications aimed
  at increasing mobile productivity. These applications and the new products we
  introduced over this past year will enable strong participation in our growing
  markets," Mr. Mills concluded.</p>
<p><b>Quarterly Management Conference Call</b><br>
  Management of Socket will hold a conference call today at 2 p.m. Pacific time
  to discuss the quarterly results and outlook for the future. The call will be
  carried live and available via replay. Participants may join the call by telephone
  at (877) 407-8033 or (201) 689-8033, or hear a replay via telephone at (877)
  660-6853 or (201) 612-7415, using access code 286188004# for a week following
  the call. The call may also be broadcasted over the Internet on VCall.com and
  may be accessed through the Company's website at http://www.mkr-group.com/SCKT/conference.html
  .</p>
<p><b>About Socket Communications</b><br>
  Socket Communications (NASDAQ: SCKT) develops and distributes a broad range
  of data collection and network connectivity products for mobile devices such
  as PDA's, Smartphones and tablet PCs. Working collaboratively with mobile solutions
  from leading Strategic Vertical Integrators, world-class third party software
  developers and OEM's, Socket's Mobility Friendly&reg; products are proven to
  drive operational efficiencies, increase mobile workforce productivity, boost
  corporate performance and improve customer satisfaction. Socket is headquartered
  in Newark, California and can be reached at 510-744-2700 or http://www.socketcom.com/</p>
<hr>
<p><b>Forward Looking Statements</b><br>
  This press release contains forward looking statements within the meaning of
  Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
  Securities Exchange Act of 1934, as amended. Such forward looking statements
  include, but are not limited to, statements forecasting future financial and
  operating results, including our ability to return to profitability in 2006
  or at any time in the future, statements predicting trends and opportunities
  in the markets in which we sell our products, including market opportunities
  and trends tied to the introduction of third-party products such as the Windows
  Mobile 5.0 operating system and the Palm Treo Smartphone, statements forecasting
  market acceptance of and demand for our products, and statements concerning
  the expansion of distribution channels for our products and adoption of our
  embedded products by third-party manufacturers of electronic devices. Such statements
  involve risks and uncertainties, and actual results could differ materially
  from the results anticipated in such forward looking statements as a result
  of a number of factors, including, but not limited to, the risk that market
  trends and opportunities may not materialize as quickly or as robustly as we
  anticipate, if at all, the risk of delays in our ability to design, manufacture
  and market new products due to technological, market, or financial factors including
  the availability of necessary working capital, and risks related to our ability
  to successfully introduce and market future products, our ability to effectively
  manage and contain our operating costs, the availability of announced handheld
  computer hardware and software, product delays associated with new model introductions
  and product changeovers, continued growth in demand for handheld computers,
  market acceptance of emerging standards such as Bluetooth and Wireless LAN and
  of our related connection and data collection products, the ability of our strategic
  partnerships to benefit our business as expected, our ability to enter into
  additional distribution relationships, or the other factors described in our
  most recent Form 10-K and 10-Q reports filed with the Securities and Exchange
  Commission.</p>
<p><i>Socket and Battery Friendly are registered trademarks of Socket Communications,
  Inc. The Mobile Connection Company, Mobility Friendly, and KwikBlue are trademarks
  of Socket Communications, Inc. The Bluetooth word mark and logos are owned by
  the Bluetooth SIG, Inc. and any use of such marks by Socket Communications,
  Inc. is under license. Wi-Fi&reg; is a registered trademark of the Wi-Fi Alliance.
  All other trademarks and trade names contained herein may be those of their
  respective owners. &copy; 2006, Socket Communications, Inc. All rights reserved.
  </i></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">--Financial
  tables to follow--</font></p>
<hr>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=800 align=center border=1>
  <tr valign=bottom>
    <td colspan=5 height=70>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><b>Socket Communications, Inc. </b></font><br>
        <font face="Times New Roman, Times, serif"
      size=3><b>Condensed Summary Statements of Operations<br>
        (Amounts in Thousands except per share amounts) </b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; </font></p>
    </td>
    <td colspan=2 height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>Year ended
        Dec 31,</font></p>
    </td>
    <td colspan=2 height=17>
      <div align="center"><font face="Times New Roman, Times, serif" size=3>Three
        Months ended Dec 31,</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=33>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; </font></p>
    </td>
    <td width="17%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2005</u> </font></p>
    </td>
    <td width="15%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u><br>
        2004</u>* </font></p>
    </td>
    <td width="15%" height=33>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2005</u> </font></p>
    </td>
    <td width="17%" height=33>
      <div align="center"><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2004</u> </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Revenue </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 25,034</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 26,130</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 5,924</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 6,451</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Cost of revenue </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,445</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,768</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,977</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,177</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Gross profit</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,589</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>13,362</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,947</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,274</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <blockquote>
        <p><font face="Times New Roman, Times, serif" size=3>Gross profit percent</font></p>
      </blockquote>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>50%</font> </p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>51%</font> </p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>50%</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>51%</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Research and development
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,511</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,658</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>876</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>918</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Sales and marketing
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>6,590</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>5,929</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,743</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>1,517</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>General and administrative
        </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>2,539</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,068</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>564</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>614</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17><font face="Times New Roman, Times, serif"
      size=3>Amortization of intangible technology</font></td>
    <td width="17%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>203</font></div>
    </td>
    <td width="17%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>397</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>36</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>106</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <blockquote>
        <p><font face="Times New Roman, Times, serif" size=3>Total operating expenses</font></p>
      </blockquote>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>12,843</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>13,052</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,219</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>3,155</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17><font face="Times New Roman, Times, serif"
      size=3>Interest (income) expense, net</font></td>
    <td width="17%" height=17>
      <div align=center>(87)</div>
    </td>
    <td width="17%" height=17>
      <div align=center>(28)</div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(32)</font></div>
    </td>
    <td width="15%" height=17>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(9)</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Net income (loss) </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(167)</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>338</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>(240)
        </font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>128 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=28>
      <p><font face="Times New Roman, Times, serif" size=3>Preferred stock dividends</font></p>
    </td>
    <td width="17%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(48)</font> </p>
    </td>
    <td width="17%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(50)</font> </p>
    </td>
    <td width="15%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(12)</font> </p>
    </td>
    <td width="15%" height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>(12)</font> </p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Net income (loss) applicable
        to common stockholders</font> </p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (215)</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 288</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (252)</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 116</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td valign=top width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>Basic and diluted net
        income (loss) per share applicable to common stockholders</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.01)</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 0.01</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (0.01)</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 0.00</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size="3">Weighted average
        shares outstanding: <br>
        </font><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbspBasic<br>
        &nbsp&nbsp&nbsp&nbsp&nbspFully Diluted </font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">30,181<br>
        30,181</font></p>
    </td>
    <td width="17%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">30,061<br>
        33,976</font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">30,211
        <br>
        30,211 </font></p>
    </td>
    <td width="15%" height=17>
      <p align=center><font face="Times New Roman, Times, serif" size="3">30,139
        <br>
        33,147 </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan="5" height=24>
      <p><font face="Times New Roman, Times, serif" size=3>*Derived from audited
        financial statements.</font></p>
      </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=800 align=center border=1>
  <tr valign=bottom>
    <td colspan=5 height=28>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><b>Reconciliation of Net Income (Loss) to Cash Flow from (Used by)
        Operations <br>
        </b></font><font face="Times New Roman, Times, serif"
      size=3><b> </b></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=17>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; <b>(Amounts
        in Thousands) </b></font></p>
    </td>
    <td colspan=4 height=17>
      <p align=center><font face="Times New Roman, Times, serif" size=3>Year ended
        Dec 31,</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=7>
      <p><font face="Times New Roman, Times, serif" size=3>&nbsp;&nbsp; </font></p>
    </td>
    <td width="30%" height=7>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>(Unaudited)<br>
        2005</u></font></p>
    </td>
    <td width="30%" height=7>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><u>2004*</u></font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=2>
      <p><font face="Times New Roman, Times, serif" size=3>Net income (loss)</font></p>
    </td>
    <td width="30%" height=2>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (167)</font></p>
    </td>
    <td width="30%" height=2>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 338</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=28>
      <p><font face="Times New Roman, Times, serif" size=3>Add back Non-cash charges:</font></p>
    </td>
    <td width="30%" height=28>
      <p align=center><font face="Times New Roman, Times, serif" size=3>&nbsp;</font></p>
    </td>
    <td width="30%" height=28>
      <p align=center><font face="Times New Roman, Times, serif" size=3>&nbsp;</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=20>
      <p><font face="Times New Roman, Times, serif" size=3>Depreciation/amortization
        of property</font></p>
    </td>
    <td width="30%" height=20>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>440</font></p>
    </td>
    <td width="30%" height=20>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>466</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=28><font face="Times New Roman, Times, serif"
      size=3>Amortization of intangible assets</font></td>
    <td width="30%" height=28>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>203</font></div>
    </td>
    <td width="30%" height=28>
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>397</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=13>
      <p><font face="Times New Roman, Times, serif" size=3>Foreign currency (gains)
        loss </font></p>
    </td>
    <td width="30%" height=13>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>48</font></p>
    </td>
    <td width="30%" height=13>
      <p align=center><font face="Times New Roman, Times, serif"
      size=3>55</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=13>
      <p><font face="Times New Roman, Times, serif" size=3>Compensatory stock
        option grants</font></p>
    </td>
    <td width="30%" height=13>
      <p align=center>21</p>
    </td>
    <td width="30%" height=13>
      <p align=center>--</p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=9>
      <p><font face="Times New Roman, Times, serif" size=3>Change in deferred
        rent </font></p>
    </td>
    <td width="30%" height=9>
      <p align=center>(33)</p>
    </td>
    <td width="30%" height=9>
      <p align=center><font face="Times New Roman, Times, serif" size=3>22</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=14>
      <p><font face="Times New Roman, Times, serif" size=3>Cash flow from (used
        by) operations<br>
        before working capital changes</font></p>
    </td>
    <td width="30%" height=14>
      <p align=center>512</p>
    </td>
    <td width="30%" height=14>
      <p align=center><font face="Times New Roman, Times, serif" size=3>1,278</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=13>
      <p><font face="Times New Roman, Times, serif" size=3>Working capital changes</font></p>
    </td>
    <td width="30%" height=13>
      <p align=center>1,671</p>
    </td>
    <td width="30%" height=13>
      <p align=center>(1,881)</p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=9>
      <p><font face="Times New Roman, Times, serif" size=3>Cash flow from (used
        by) operations</font></p>
    </td>
    <td width="30%" height=9>
      <p align=center>$ 2,183</p>
    </td>
    <td width="30%" height=9>
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ (603)</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="40%" height=20>
      <p><font face="Times New Roman, Times, serif" size=3>*Derived from audited
        financial statements.</font></p>
    </td>
    <td width="30%" height=20>
      <p align=center><font face="Times New Roman, Times, serif" size=3>&nbsp;</font></p>
    </td>
    <td width="30%" height=20>
      <p align=center><font face="Times New Roman, Times, serif" size=3>&nbsp;</font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<hr>
<p>&nbsp;</p>
<table cellspacing=1 cellpadding=1 width=695 align=center border=1>
  <tr valign=bottom>
    <td colspan=3 height="61">
      <p align=center><font face="Times New Roman, Times, serif"
      size=3><b>Socket Communications, Inc. <br>
        Condensed Summary Balance Sheets <br>
        (Amounts in Thousands</b></font>) </p>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=26 width="44%">&nbsp;</td>
    <td height=26 colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">December
        31, </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td height=24 width="44%"><font face="Times New Roman, Times, serif" size=3>&nbsp</font></td>
    <td height=24 width="29%">
      <div align="center"><font face="Times New Roman, Times, serif" size=3>(Unaudited)<u><br>
        2005</u></font></div>
    </td>
    <td height=24 width="27%">
      <div align="center"><font face="Times New Roman, Times, serif" size=3><u>2004</u></font><u>*</u>
      </div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Cash</font> </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 6,833
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 5,932</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Accounts receivable
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3> 2,953</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>4,009</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Inventories </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,195
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,941
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Other current assets</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>315</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>160</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Property and equipment,
        net </font></p>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>628</font></div>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>479</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Goodwill </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>9,798
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>9,798
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Intangible technology</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>749</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>952</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Other assets</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>164</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>129</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Total Assets </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 23,635
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 24,400
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3><font face="Times New Roman, Times, serif"
      size=3>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Accounts payable and
        accrued liabilities</font> </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 3,346</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>$ 3,350</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Bank line of credit</font>
      </p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,309</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>2,949</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Deferred income on
        shipments to distributors</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>1,114</font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>1,056</font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%"><font face="Times New Roman, Times, serif" size=3>Capital
      leases/other non-current liabilities</font></td>
    <td width="29%">
      <div align=center>51</div>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>93</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Common and convertible
        preferred stock </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>50,704
        </font></p>
    </td>
    <td width="29%">
      <p align=center><font face="Times New Roman, Times, serif" size=3>50,626
        </font></p>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%">
      <p><font face="Times New Roman, Times, serif" size=3>Accumulated deficit</font>
      </p>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(33,889)</font></div>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif"
      size=3>(33,674)</font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="44%"><font face="Times New Roman, Times, serif" size=3>Total Liabilities
      and Equity</font></td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif" size=3>$ 23,635
        </font></div>
    </td>
    <td width="29%">
      <div align=center><font face="Times New Roman, Times, serif" size=3>$ 24,400
        </font></div>
    </td>
  </tr>
  <tr valign=bottom>
    <td colspan=3>
      <p><font face="Times New Roman, Times, serif" size=3>*Derived from audited
        financial statements. </font></p>
    </td>
  </tr>
</table>
<p align="center"># # #</p>
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