September
30,
|
||||||||||
2005
|
December
31,
|
December
31,
|
||||||||
|
(unaudited)
|
2004
|
2003
|
|||||||
ASSETS
|
||||||||||
Current
assets
|
||||||||||
Cash
|
$
|
416
|
$
|
586
|
$
|
475
|
||||
Accounts
receivable, net
|
654
|
665
|
580
|
|||||||
Inventory
|
316
|
297
|
211
|
|||||||
Prepaid
expenses
|
139
|
2
|
-
|
|||||||
Deferred
tax asset
|
24
|
12
|
-
|
|||||||
Total
current assets
|
1,549
|
1,562
|
1,266
|
|||||||
Property
and equipment
|
||||||||||
Property
and equipment, net
|
172
|
195
|
225
|
|||||||
Total
property and equipment
|
172
|
195
|
225
|
|||||||
Other
assets
|
||||||||||
Investments
|
75
|
75
|
50
|
|||||||
Rent
deposit
|
17
|
23
|
23
|
|||||||
Total
other assets
|
92
|
98
|
73
|
|||||||
TOTAL
ASSETS
|
$
|
1,813
|
$
|
1,855
|
$
|
1,564
|
||||
|
September
30,
|
|||||||||
2005
|
December
31,
|
December
31,
|
||||||||
(unaudited)
|
2004
|
2003
|
||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||
Current
liabilities
|
||||||||||
Accounts
payable and accrued expenses
|
$
|
257
|
$
|
205
|
$
|
160
|
||||
Related
party payable
|
80
|
140
|
-
|
|||||||
Redemption
payable
|
100
|
-
|
-
|
|||||||
Taxes
payable
|
1
|
179
|
65
|
|||||||
Deferred
tax liability
|
-
|
-
|
3
|
|||||||
Tenant
deposit
|
6
|
6
|
-
|
|||||||
Total
current liabilities
|
444
|
530
|
228
|
|||||||
Long-term
liabilities
|
||||||||||
Deferred
tax liability
|
11
|
16
|
13
|
|||||||
Total
long-term liabilities
|
11
|
16
|
13
|
|||||||
Commitments
and contingencies
|
-
|
-
|
-
|
|||||||
Stockholders’
equity
|
||||||||||
Common
stock, no par, 10,000,000 shares
|
||||||||||
authorized;
217,696, 239,676 and 259,676 shares issued and outstanding,
respectively
|
552
|
552
|
552
|
|||||||
Retained
earnings
|
806
|
757
|
771
|
|||||||
Total
stockholders’ equity
|
1,358
|
1,309
|
1,323
|
|||||||
TOTAL
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
$
|
1,813
|
$
|
1,855
|
$
|
1,564
|
Nine
Months Ended
|
|||||||||||||
September
30,
|
September
30,
|
Year
Ended
|
|||||||||||
2005
|
2004
|
December
31,
|
December
31,
|
||||||||||
|
(unaudited)
|
(unaudited)
|
|
2004
|
2003
|
||||||||
Revenues
|
$
|
3,041
|
$
|
3,174
|
$
|
4,077
|
$
|
3,962
|
|||||
Cost
of goods sold
|
1,422
|
1,484
|
1,954
|
1,806
|
|||||||||
Gross
profit
|
1,619
|
1,690
|
2,123
|
2,156
|
|||||||||
Expenses
|
|||||||||||||
Travel
and entertainment
|
51
|
43
|
52
|
78
|
|||||||||
Depreciation
|
40
|
55
|
74
|
60
|
|||||||||
General
and administrative
|
389
|
402
|
561
|
508
|
|||||||||
Insurance
|
82
|
79
|
131
|
128
|
|||||||||
Professional
fees
|
53
|
27
|
34
|
145
|
|||||||||
Research
and development
|
552
|
450
|
839
|
442
|
|||||||||
Taxes
|
17
|
8
|
9
|
49
|
|||||||||
Total
expenses
|
1,184
|
1,064
|
1,700
|
1,410
|
|||||||||
Income
from operations
|
435
|
626
|
423
|
746
|
|||||||||
Other
income (expenses)
|
|||||||||||||
Interest
income
|
8
|
2
|
5
|
4
|
|||||||||
Asset
disposal (loss)
|
-
|
-
|
(27
|
)
|
-
|
||||||||
Miscellaneous
income (expense)
|
1
|
(28
|
)
|
(24
|
)
|
7
|
|||||||
Moving
expense
|
(1
|
)
|
(44
|
)
|
(98
|
)
|
(1
|
)
|
|||||
Research
grant
|
-
|
99
|
99
|
-
|
|||||||||
Rental
income
|
32
|
-
|
-
|
-
|
|||||||||
Vendor
compensation
|
10
|
-
|
-
|
-
|
|||||||||
Total
other income (expenses)
|
50
|
29
|
(45
|
)
|
10
|
||||||||
Income
before income taxes
|
485
|
655
|
378
|
756
|
|||||||||
Provision
for income taxes
|
|||||||||||||
Current
|
133
|
78
|
104
|
208
|
|||||||||
Deferred
|
(16
|
)
|
(9
|
)
|
(12
|
)
|
16
|
||||||
117
|
69
|
92
|
224
|
||||||||||
Net
income
|
$
|
368
|
$
|
586
|
$
|
286
|
$
|
532
|
|||||
Basic
and diluted net income per
|
|||||||||||||
Common
share
|
$
|
1.58
|
$
|
2.34
|
$
|
1.14
|
$
|
2.01
|
|||||
Weighted
average number of basic
|
|||||||||||||
and
diluted common stock
|
|||||||||||||
shares
outstanding
|
232,349
|
250,787
|
251,841
|
264,774
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
||
Common
Stock
|
Retained
|
Stockholder's
|
|||||||||||
|
|
|
Shares
|
Amount
|
Earnings
|
Equity
|
|||||||
Balance
January 1, 2003
|
266,666
|
$
|
500
|
$
|
539
|
$
|
1,039
|
||||||
Stock
issuance for services at $4 per share
|
13,010
|
52
|
-
|
52
|
|||||||||
Stock
redeemed at $15 per share
|
(20,000
|
)
|
-
|
(300
|
)
|
(300
|
)
|
||||||
Net
income for year ended December 31, 2003
|
-
|
-
|
532
|
532
|
|||||||||
Balance,
December 31, 2003
|
259,676
|
552
|
771
|
1,323
|
|||||||||
Stock
redeemed at $15 per share
|
(20,000
|
)
|
-
|
(300
|
)
|
(300
|
)
|
||||||
Net
income for year ended December 31, 2004
|
-
|
-
|
286
|
286
|
|||||||||
Balance,
December 31, 2004
|
239,676
|
552
|
757
|
1,309
|
|||||||||
Stock
redeemed at $10 per share
|
(1,980
|
)
|
-
|
(19
|
)
|
(19
|
)
|
||||||
Stock
redeemed at $15 per share
|
(20,000
|
)
|
-
|
(300
|
)
|
(300
|
)
|
||||||
Net
income for nine months ended September 30, 2005 (unaudited)
|
-
|
-
|
368
|
368
|
|||||||||
Balance,
September 30, 2005 (unaudited)
|
217,696
|
$
|
552
|
$
|
806
|
$
|
1,358
|
Nine
Months Ended
|
|||||||||||||
September
30,
|
September
30,
|
Year
Ended
|
|||||||||||
2005
|
2004
|
December
31,
|
December
31,
|
||||||||||
(unaudited)
|
(unaudited)
|
2004
|
2003
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||||||||
Net
income
|
$
|
368
|
$
|
586
|
$
|
286
|
$
|
532
|
|||||
Adjustments
to reconcile net income to net cash provided
|
|||||||||||||
by
operations:
|
|||||||||||||
Depreciation
|
40
|
55
|
74
|
60
|
|||||||||
Stock
issued for services
|
-
|
-
|
-
|
52
|
|||||||||
Loss
on asset disposal
|
-
|
-
|
26
|
-
|
|||||||||
Decrease
(increase) in:
|
|||||||||||||
Receivables
|
11
|
(126
|
)
|
(84
|
)
|
(34
|
)
|
||||||
Inventory
|
(18
|
)
|
36
|
(87
|
)
|
51
|
|||||||
Prepaids
|
(137
|
)
|
-
|
(2
|
)
|
68
|
|||||||
Deposits
|
6
|
-
|
-
|
(17
|
)
|
||||||||
Deferred
tax asset
|
(13
|
)
|
(8
|
)
|
(11
|
)
|
-
|
||||||
Increase
(decrease) in:
|
|||||||||||||
Accounts
payable and accrued expenses
|
52
|
(44
|
)
|
45
|
(310
|
)
|
|||||||
Related
party payable
|
(60
|
)
|
-
|
140
|
-
|
||||||||
Taxes
payable
|
(178
|
)
|
93
|
114
|
61
|
||||||||
Deferred
tax liability
|
(4
|
)
|
(2
|
)
|
--
|
16
|
|||||||
Other
payables
|
100
|
-
|
6
|
-
|
|||||||||
Net
cash provided by operating activities
|
167
|
590
|
507
|
479
|
|||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||||||||
Additions
to property, plant and equipment
|
(17
|
)
|
(51
|
)
|
(71
|
)
|
(92
|
)
|
|||||
Investments
acquired
|
-
|
-
|
(25
|
)
|
(50
|
)
|
|||||||
Net
cash used by investing activities
|
(17
|
)
|
(51
|
)
|
(96
|
)
|
(142
|
)
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||||||||
Treasury
stock purchased
|
(320
|
)
|
(200
|
)
|
(300
|
)
|
(300
|
)
|
|||||
Net
cash used by financing activities
|
(320
|
)
|
(200
|
)
|
(300
|
)
|
(300
|
)
|
|||||
Net
increase (decrease) in cash
|
(170
|
)
|
339
|
111
|
37
|
||||||||
CASH
- Beginning of period
|
586
|
475
|
475
|
438
|
|||||||||
CASH
- End of period
|
$
|
416
|
$
|
814
|
$
|
586
|
$
|
475
|
|||||
SUPPLEMENTAL
CASHFLOW DISCLOSURES
|
|||||||||||||
Interest
expense paid
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||
Income
taxes paid
|
$
|
-
|
$
|
-
|
$
|
104
|
$
|
208
|
|||||
NON-CASH
INVESTING AND FINANCING TRANSACTIONS
|
|||||||||||||
Stock
issued for services
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
52
|
September
30, 2005
|
December
31, 2004
|
December
31, 2003
|
|||||||
Checking
accounts
|
$
|
50,795
|
$
|
30,916
|
$
|
97,743
|
|||
Money
market accounts
|
365,018
|
554,601
|
376,889
|
||||||
Total
Cash and Cash Equivalents
|
$
|
415,813
|
$
|
585,517
|
$
|
474,632
|
September
30, 2005
|
December
31, 2004
|
December
31, 2003
|
|||||||
Furniture
and office equipment
|
$
|
197,316
|
$
|
195,585
|
$
|
156,478
|
|||
Laboratory
equipment
|
390,676
|
375,658
|
383,327
|
||||||
Leasehold
improvement
|
29,240
|
29,240
|
29,240
|
||||||
Total
Property and Equipment
|
617,232
|
600,483
|
569,045
|
||||||
Less:
Accumulated Depreciation
|
(445,241)
|
(405,463)
|
(344,455)
|
||||||
Property
and Equipment Net
|
$
|
171,991
|
$
|
195,020
|
$
|
224,590
|
2005
|
$
|
45,850
|
||
2006
|
188,888
|
|||
2007
|
194,526
|
|||
2008
|
166,928
|
|||
Total
|
$
|
596,192
|
2005
|
$
|
10,354
|
||
2006
|
42,656
|
|||
2007
|
43,936
|
|||
2008
|
45,254
|
|||
Total
|
$
|
142,200
|
September
30,
2005
|
December
31,
2004
|
December
31,
2003
|
|||||||
Beginning
balance
|
$
|
(11,451
|
)
|
$
|
2,778
|
$
|
-
|
||
Current:
|
|||||||||
Inventory
uniform capitalization
|
-
|
(3,984
|
)
|
2,279
|
|||||
State
income tax
|
(12,650
|
)
|
(10,245
|
)
|
499
|
||||
Current
Deferred Tax (asset)/liability
|
$
|
(24,101
|
)
|
$
|
(11,451
|
)
|
$
|
2,778
|
|
Beginning
balance
|
$
|
15,543
|
$
|
13,029
|
$
|
-
|
|||
Non-current:
|
|||||||||
Depreciation
|
(4,123
|
)
|
5,402
|
13,029
|
|||||
Loss
on the sale of assets
|
-
|
(2,888
|
)
|
-
|
|||||
Non-Current
Deferred Tax (asset)/liability
|
$
|
11,420
|
$
|
15,543
|
$
|
13,029
|
September
30,
2005
|
December
31,
2004
|
December
31,
2003
|
|||||||
Federal
income tax
|
$
|
133,218
|
$
|
103,949
|
$
|
207,931
|
|||
State
income tax
|
12,207
|
4,698
|
45,457
|
||||||
Total
Provision for Income Tax
|
$
|
145,425
|
$
|
108,647
|
$
|
253,388
|
September
30,
2005
|
December
31,
2004
|
December
31,
2003
|
|||||||
Federal
statutory income tax rate
|
34.00
|
%
|
34.00
|
%
|
34.00
|
%
|
|||
Research
tax credit
|
(7.39
|
%)
|
(12.57
|
%)
|
(6.88
|
%)
|
|||
Valuation
allowance on deferred tax assets
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
|||
Effective
Federal Tax Rate
|
26.61
|
%
|
21.43
|
%
|
27.12
|
%
|
September
30,
2005
|
|
December
31, 2004
|
|
December
31, 2003
|
|
State
statutory income tax rate
|
8.85%
|
8.85%
|
8.85%
|
||
Research
tax credit
|
(6.51%)
|
(8.02%)
|
(3.25%)
|
||
Valuation
allowance on deferred tax assets
|
0.00%
|
0.00%
|
0.00%
|
||
Effective
State Tax Rate
|
2.34%
|
0.83%
|
5.60%
|