----

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**Washington,      D.C. 20549 **

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**Form      10-KSB **

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**ANNUAL      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**For      the fiscal year ended December 31, 2006 **

**OR**

**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**For      the transition period from **
**            **
**      to **
**            **
** **

**Commission      file number 001-14257 **

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**Alpha      Innotech Corp. **

***(Name      of small business issuer in its charter)***
** **

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| **Delaware**                                                                                            | **58-1729436**                                                                |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| **(State                  or other jurisdiction of****incorporation                  or organization)** | **(I.R.S.                  Employer****Identification                  No.)** |
|                                                                                                    |                                                                          |
| **2401                  Merced Street, San Leandro, CA**                                                | **94577**                                                                     |
| **(Address                  of principal executive offices)**                                           | **(Zip                  Code)**                                               |

**Issuer’s      telephone number (510) 483-9620 **

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**None**

**Securities      registered pursuant to section 12(g) of the Act: **

| **Title                of each class**                                |
|-----------------------------------------------------------------------|
|  **Common                Stock, par value $.01 per share**  |

**Documents      Incorporated by Reference**

----

**TABLE      OF CONTENTS **

| **FORWARD                  LOOKING STATEMENTS**        | 3                                         |
|--------------------------------------------------------|-------------------------------------------|
| **PART I**                                        |                                      | 3 |
|                                                   | **    ITEM 1.**  | **DESCRIPTION                  OF BUSINESS** | 3 |
|                                                   | **    ITEM 2.**  | **DESCRIPTION                  OF PROPERTY** | 9 |
|                                                   | **    ITEM 3.**  | **LEGAL                  PROCEEDINGS** | 9 |
|                                                   | **    ITEM 4.**  | **SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY HOLDERS** | 9 |
|                                                   |                                      |   |
| **PART II**                                       |                                      | 10 |
|                                                   | **    ITEM 5.**  | **MARKET                  FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS                  ISSUER                  PURCHASES OF EQUITY SECURITIES** | 10 |
|                                                   | **    ITEM 6.**  | **MANAGEMENT’S                  DISCUSSION AND ANALYSIS** | 10 |
|                                                   | **    ITEM 7.**  | **FINANCIAL                  STATEMENTS** | 16 |
|                                                   | **    ITEM 8.**  | **CHANGES                  IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                  DISCLOSURE** | 16 |
|                                                   | **    ITEM 8A.** | **CONTROLS                  AND PROCEDURES** | 16 |
|                                                   | **    ITEM 8B.** | **OTHER                  INFORMATION** | 16 |
|                                                   |                                      |   |
| **PART III**                                      |                                      | 17 |
|                                                   | **    ITEM 9.**  | **DIRECTORS,                  EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS AND CORPORATE                  GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE                  ACT** | 17 |
|                                                   | **    ITEM 10.** | **EXECUTIVE                  COMPENSATION** | 18 |
|                                                   | **    ITEM 11.** | **SECURITY                  OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED                  STOCKHOLDER MATTERS** | 18 |
|                                                   | **    ITEM 12.** | **CERTAIN                  RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR                  INDEPENDENCE** | 18 |
|                                                   | **    ITEM 13.** | **EXHIBITS** | 19 |
|                                                   | **    ITEM 14.** | **PRINCIPAL                  ACCOUNTANT FEES AND SERVICES** | 20 |
| **CONSOLIDATED                  FINANCIAL STATEMENTS** | F-1                                       |
| **SIGNATURES**                                    | S-1                                       |
| **EXHIBITS**                                      |                                      |

----

**FORWARD      LOOKING STATEMENTS **

**Safe      Harbor Statement under the Private Securities Litigation Reform Act of 1995      **

**PART      I **

**ITEM 1.      DESCRIPTION OF BUSINESS **

**Introduction      **

**Products      and Markets **

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**Distribution      **

**Competition      **

**Sources      and Availability of Materials **

**Dependence      on One or Few Customers**

**Intellectual      Property **

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**Effect      of Existing or Probable Governmental Regulation on the Business**

**Research      and Development Activities **

**Employees      **

**RISK      FACTORS **

***Alpha      CA has a history of operating losses and may incur future losses.***

***Our      competitors have more resources than we do.***

***Additional      financing may be required for our future business and operations.***

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***Our        business depends on research and development spending levels of pharmaceutical        and biotechnology companies and academic and governmental research institutions.***

***We      depend on a limited number of suppliers and we will face delays in manufacturing      of our products if shipments from these suppliers are delayed or interrupted.***

***Our      dependence on contract manufacturing and outsourcing other portions of our      supply chain may adversely affect our ability to bring products to market.***

***If      we are unable to maintain our relationships with collaborative partners, we      may      have difficulty developing and selling our products and services.***

***If      we are unable to maintain our relationships with our selling and distribution      partners, our growth and financial results may be adversely affected.***

----

***Due        to the international nature of our business, political or economic changes        or        other factors could harm our business.***

***We      could fail in our efforts to expand our distribution and development activities      in Asia.***

***Third      parties may claim that we are infringing their intellectual property, and we      could suffer significant litigation or licensing expenses or be prevented from      selling products.***

***Third      parties may infringe our intellectual property, and we may expend significant      resources enforcing our rights or suffer competitive injury.***

***Recent      changes in management may be disruptive.***

***If      we lose our key personnel or are unable to attract and retain additional skilled      personnel, our business may suffer.***

***To      attract and retain qualified personnel, we may need to grant large stock-based      incentives that could be dilutive to our shareholders and we may be required      to      offer highly competitive salaries which would increase future operating costs.***

----

***We      may engage in future acquisitions, which could be expensive and time consuming,      and such acquisitions could adversely affect your investment in us as we may      never realize any benefits from such acquisitions.***

***Integrating      technologies may be costly and may not result in technological advances.***

***If      we suffer loss to our factories, facilities or distribution system due to      catastrophe, our operations could be seriously harmed.***

***Compliance      with Section 404 of the Sarbanes-Oxley Act of 2002 will entail significant      expenditure and could materially affect our financial results.***

***Only      a relatively small quantity of our shares is available for trade and as a      result, our stock may suffer from limited liquidity and significant volatility.***

***Our      directors, officers and principal stockholders have significant voting power      and      may take actions that may not be in the best interests of our other      stockholders.***

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***Rules      applicable to trading of our common stock reduce the level of trading in the      secondary market for our stock and as a result, investors may find it difficult      to sell their shares.***

*www.sec.gov*

**ITEM 2.      DESCRIPTION OF PROPERTY **

**ITEM 3.      LEGAL PROCEEDINGS **

**ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS **

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**PART      II **

**ITEM 5.      MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER      PURCHASES OF EQUITY SECURITIES **

**Market      Information **

| **Fiscal Year 2006** |   | **High Bid** |                                | **Low Bid** |   |
|--------------------------------|--------|-------------------|-------------------------------------|------------------|--------|
| First Quarter             |   | $                 | 1.69                                |             | $      | 1.05 |   |
| Second Quarter            |   |              | 1.70                                |             |   | 1.05 |   |
| Third Quarter             |   |              | 1.15                                |             |   | 0.70 |   |
| Fourth Quarter            |   |              | 1.30                                |             |   | 0.70 |   |
|                           |   |              |                                |             |   |   |   |
| **Fiscal Year 2005** |   |              | **High                        Bid** |             |   | **Low                        Bid** |   |
| First Quarter*            |   | $                 | 1.95                                |             | $      | 1.40 |   |
| Second Quarter*           |   |              | 1.75                                |             |   | 1.40 |   |
| Third Quarter*            |   |              | 2.05                                |             |   | 1.41 |   |
| Fourth Quarter            |   |              | 2.00                                |             |   | 0.15 |   |

**Holders      **

**Dividends      **

**ITEM 6.      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS **

**Critical          Accounting Policies and Estimates **

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|                                              |   | **Twelve Months Ended****December 31,                    2006** |    |
|---------------------------------------------------|--------|--------------------------------------------------------------------------------|---------|
| Cost                    of goods sold             |   | $                                                                              | 7,191   |   |
| Sales                    and marketing            |   |                                                                           | 16,861  |   |
| Research                    and development       |   |                                                                           | 14,096  |   |
| General                    and administrative     |   |                                                                           | 259,114 |   |
| Total                    share-based compensation |   | $                                                                              | 297,262 |   |

----

|                                                                 |   | Number                    of Shares |     | Weighted                    Average Grant Date Fair Value |   |
|----------------------------------------------------------------------|--------|-------------------------------------|----------|-----------------------------------------------------------|--------|
| Non-vested                    stock outstanding at December 31, 2005 |   |                                | 124,287  |                                                      | $      | 1.40 |   |
| Granted                                                              |   |                                | 476,001  |                                                      |   | 1.40 |   |
| Vested                                                               |   |                                | (140,425 | )                                                         |   | 0.89 |   |
| Forfeited                                                            |   |                                | (70,297  | )                                                         |   | 2.29 |   |
| Non-vested                    stock outstanding at December 31, 2006 |   |                                | 389,566  |                                                      | $      | 1.42 |   |

|                                                                    |   | **Twelve Months Ended****December 31,                  2005** |       |
|-------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|------------|
| Net                  loss applicable to common stockholders as reported |   | $                                                                            | (3,126,404 | ) |
| Effect                  of stock-based compensation per SFAS 123        |   |                                                                         | (37,524    | ) |
| Net                  loss applicable to common stockholders - pro forma |   | $                                                                            | (3,163,928 | ) |

|                                                                    |   |                                                                 |   |
|-------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                                    |   | **Twelve Months Ended****December 31,** **2005** |   |
| Basic                  and Diluted:                                     |   |                                                                 |   |
| Net                  loss per share as reported                         |   | $                                                                    | (0.80  | ) |
| Effect                  of stock-based compensation per SFAS 123        |   |                                                                 | (0.01  | ) |
| Net                  loss applicable to common stockholders - pro forma |   | $                                                                    | (0.81  | ) |

|                                     |   | **2006** |                          | **2005** |   |
|------------------------------------------|--------|----------|-------------------------------|----------|--------|
| Risk-free                      interest  |   |     | 4.74                          | %        |   | 4.62 | % |
| Expected                      life       |   |     | 10                      Years |     |   | 10                      Years |   |
| Expected                      volatility |   |     | 73                            | %        |   | 70 | % |
| Expected                      dividend   |   |     | —                       |     |   | — |   |

----

|                                                                    |   | Shares |    | Weighted                        -Average Exercise Price per Share |   | Weighted-Average                        Remaining Contractual Terms in Years |   | Aggregate                        Intrinsic Value |   |
|-------------------------------------------------------------------------|--------|--------|---------|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
| Outstanding                        at December 31, 2005                 |   |   | 475,117 |                                                              | $      | 3.21                                                                         |   |                                             |   |   |   |   |   |
| Grants                                                                  |   |   | 476,001 |                                                              |   | 1.40                                                                         |   |                                             |   |   |   |   |   |
| Exercises                                                               |   |   | — |                                                              |   |                                                                         |   |                                             |   |   |   |   |   |
| Forfeitures                                                             |   |   | (53,693 | )                                                                 |   | 1.59                                                                         |   |                                             |   |   |   |   |   |
| Expirations                                                             |   |   | (16,604 | )                                                                 |   | 4.58                                                                         |   |                                             |   |   |   |   |   |
| Outstanding                        at December 31, 2006                 |   |   | 880,821 |                                                              | $      | 2.30                                                                         |   |                                             | 7.36   |   | $ | 66,000 |   |
| Exercisable                        at December 31, 2006                 |   |   | 491,255 |                                                              | $      | 3.00                                                                         |   |                                             | 5.85   |   | $ | 11,002 |   |
| Vested                        and expected to vest at December 31, 2006 |   |   | 491,255 |                                                              | $      | 3.00                                                                         |   |                                             | 5.85   |   | $ | 11,002 |   |

|                                                                                                        |   | **2006** |    | **2005**  |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------------|--------|
| Shares                  issuable upon exercise of stock options                                             |   |     | 54,818  |           |   | — |   |
| Shares                  issuable upon exercise of warrants                                                  |   |     | 398,214 |           |   | 573,307 |   |
| Shares                  issuable upon conversion of redeemable convertible preferred                  stock |   |     | — |           |   | 4,293,329 |   |
| Denominator                  for basic and diluted calculations                                             |   |     | 453,032 |           |   | 4,866,63 |   |

*** ***

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**Overview          **

**Comparison        of the Year Ended December 31, 2006 and 2005 **

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**·**

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**ITEM 7.      FINANCIAL STATEMENTS **

**ITEM 8.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE **

**ITEM 8A.      CONTROLS AND PROCEDURES **

**ITEM 8B.      OTHER INFORMATION **

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**PART      III **

**[Certain      information required by Part III is omitted from this report because the Company      will file a definitive proxy statement within 120 days after the end of its      fiscal year pursuant to Regulation 14A (the “**
**Proxy      Statement**
**”)      for its 2007 annual meeting of stockholders, and the information included in      the      Proxy Statement is incorporated herein by reference.] **

**ITEM 9.      DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE      GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT**

| **NAME**                                | **AGE**  | **POSITION**                                                                                                                              |
|-----------------------------------------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |          |                                                                                                                                      |
| Ronald                  H. Bissinger    | 56            | Chief                  Executive Officer, Chief Operating Officer, Chief Financial Officer                  and                  Director |
| William                  Snider         | 36            | Chairman                  of the Board                                                                                                    |
| Haseeb                  Chaudhry        | 41            | Vice                  Chairman                                                                                                            |
| Michael                  D. Bick, Ph.D. | 62            | Director                                                                                                                                  |
| James                  H. Chamberlain   | 59            | Director                                                                                                                                  |
| Nagesh                  Mhatre, Ph.D.   | 74            | Director                                                                                                                                  |
| Darryl                  Ray, Ph.D.      | 55            | Director                                                                                                                                  |

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**ITEM 10.      EXECUTIVE COMPENSATION **

**ITEM 11.      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS **

**ITEM 12.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

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**ITEM 13.      EXHIBITS **

| **Number** | **Description**                                                                                                                                    |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.11       | Agreement                  and Plan of Merger dated as of December 14, 2004                                                                        |
|       |                                                                                                                                               |
| 2.22       | Amendment                  No. 1 to Agreement and Plan of Merger dated April 6,                  2005                                              |
|       |                                                                                                                                               |
| 2.33       | Amendment                  No. 2 to Agreement and Plan of Merger dated July 6,                  2005                                               |
|       |                                                                                                                                               |
| 2.44       | Amendment                  No. 3 to Agreement and Plan of Merger dated August 25,                  2005                                            |
|       |                                                                                                                                               |
| 3.15       | Certificate                  of Incorporation                                                                                                      |
|       |                                                                                                                                               |
| 3.1.15     | Certificate                  of Amendment to Certificate of Incorporation                                                                          |
|       |                                                                                                                                               |
| 3.26       | Bylaws                                                                                                                                             |
|       |                                                                                                                                               |
| 4.17       | 1993                  Stock Incentive Plan*                                                                                                        |
|       |                                                                                                                                               |
| 4.28       | 2000                  Stock Incentive Plan*                                                                                                        |
|       |                                                                                                                                               |
| 4.35       | Amended                  and Restated 1999 Stock Option Plan of Alpha Innotech                  Corporation*                                       |
|       |                                                                                                                                               |
| 4.45       | 2001                  Milestone Stock Option Plan of Alpha Innotech                  Corporation*                                                  |
|       |                                                                                                                                               |
| 4.59       | 2006                  Equity Incentive Plan*                                                                                                       |
|       |                                                                                                                                               |
| 4.65       | Secured                  Promissory Note Issued to Alexandria Dated April 8,                  2005                                                 |
|       |                                                                                                                                               |
| 4.75       | Loan                  and Security Agreement with BFI dated March 9, 2004                                                                          |
|       |                                                                                                                                               |
| 4.810      | Form                  of Convertible Note Issued to ETP/FBR Venture Capital II,                  LLC                                               |
|       |                                                                                                                                               |
| 4.910      | Form                  of Warrant Issued to ETP/FBR Venture Capital II, LLC                                                                         |
|       |                                                                                                                                               |
| 4.10  | Form                of Restricted Stock Award to Ronald Bissinger                                                                        |
|       |                                                                                                                                               |
| 10.110     | Form                  of Securities Purchase Agreement with ETP/FBR Venture Capital II,                  LLC                                       |
|       |                                                                                                                                               |
| 10.25      | Employment                  Agreement between Alpha Innotech Corporation and Haseeb Chaudhry                  dated May                  11, 2001* |

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| 10.35  | Amendment                  No. 1 to Employment Agreement with Haseeb Chaudhry dated April 6,                  2005*.                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                             |
| 10.4   | Agreement                  and General Release with Haseeb Chaudhry dated October 27,                  2006*.                                    |
|   |                                                                                                                                             |
| 10.55  | Employment                  Agreement between Alpha Innotech Corporation and Darryl Ray dated                  May 11,                  2001*    |
|   |                                                                                                                                             |
| 10.65  | Amendment                  No. 1 to Employment Agreement with Darryl Ray dated April 6,                  2005.*                                  |
|   |                                                                                                                                             |
| 10.7   | Agreement                  and General Release with Darryl Ray dated March 31,                  2006*                                            |
|   |                                                                                                                                             |
| 10.811 | Employee                  offer letter to Ronald H. Bissinger*                                                                                   |
|   |                                                                                                                                             |
| 11.112 | Statement                  regarding computation of per share earnings                                                                           |
|   |                                                                                                                                             |
| 14.113 | Code                  of Ethics                                                                                                                  |
|   |                                                                                                                                             |
| 16.114 | Letter                  on change in certifying accountant                                                                                       |
|   |                                                                                                                                             |
| 21.115 | Subsidiaries                  of the small business issuer                                                                                       |
|   |                                                                                                                                             |
| 23.1   | Letter                  of Consent From Independent Registered Public Accounting Firm,                  Rowbotham                  & Company |
|   |                                                                                                                                             |
| 24.116 | Power                  of attorney                                                                                                               |
|   |                                                                                                                                             |
| 31.1   | Rule                  13a-14(a) Certification (CEO and CFO)                                                                                      |
|   |                                                                                                                                             |
| 32.1   | Section                  1350 Certification (CEO and CFO)                                                                                        |
|   |                                                                                                                                             |
|   |                                                                                                                                             |

**ITEM 14.      PRINCIPAL ACCOUNTANT FEES AND SERVICES **

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|                                                                               | **Page**  |
|------------------------------------------------------------------------------------|----------------|
| Alpha                  Innotech Corp.                                              |           |
| Report                  of Independent Registered Public Accounting Firm           | F-2            |
| Consolidated                  Balance Sheet                                        | F-3            |
| Consolidated                  Statements of Operations                             | F-4            |
| Consolidated                  Statements of Changes in Shareholders’ Deficit | F-5            |
| Consolidated                  Statements of Cash Flows                             | F-6            |
| Notes                  to Consolidated Financial Statements                        | F-8            |

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**Report      of Independent Registered Public Accounting Firm **

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**ALPHA          INNOTECH CORP.**

**Consolidated      Balance Sheet **

*As      of      December 31, 2006 *

|                                                                                                                                                              |   | **2006**  |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|
| **Assets**                                                                                                                                                        |   |           |        |
| Current                  assets:                                                                                                                                  |   |           |        |
| Cash                  and cash equivalents                                                                                                                        |   | $              | 445,656     |   |
| Accounts                  receivable, net                                                                                                                    |   |           | 2,189,411   |   |
| Inventory,                  net                                                                                                                                   |   |           | 633,550     |   |
| Prepaid                  expenses and other current assets                                                                                                        |   |           | 189,524     |   |
| Total                  current assets                                                                                                                             |   |           | 3,458,141   |   |
|                                                                                                                                                              |   |           |        |   |
| Property                  and equipment, net                                                                                                                      |   |           | 1,048,906   |   |
|                                                                                                                                                              |   |           |        |   |
| Other                  assets                                                                                                                                     |   |           | 91,307      |   |
| Total                  assets                                                                                                                                     |   | $              | 4,598,354   |   |
| **Liabilities                  and Shareholders’ Deficit**                                                                                                  |   |           |             |   |
| Current                  liabilities:                                                                                                                             |   |           |             |   |
| Accounts                  payable                                                                                                                                 |   | $              | 1,608,286   |   |
| Accrued                  liabilities                                                                                                                              |   |           | 975,666     |   |
| Current                  portion of debt                                                                                                                          |   |           | 1,593,675   |   |
| Deferred                  revenue                                                                                                                                 |   |           | 895,875     |   |
| Other                  liabilities                                                                                                                                |   |           | 210,474     |   |
| Total                  current liabilities                                                                                                                        |   |           | 5,283,976   |   |
| Debt,                  net of current portion                                                                                                                     |   |           | 489,068     |   |
| Commitments                  and contingencies                                                                                                                    |   |           | —     |   |
| Shareholders’                  deficit:                                                                                                                     |   |           |             |   |
| Common                  stock, $0.01 par value per share: 50,000,000 shares authorized,                  9,891,393                  shares issued and outstanding |   |           | 98,914      |   |
| Additional                  paid-in capital                                                                                                                       |   |           | 17,108,125  |   |
| Accumulated                  deficit                                                                                                                              |   |           | (18,373,661 | ) |
| Treasury                  stock                                                                                                                                   |   |           | (8,068      | ) |
| Total                  shareholders’ deficit                                                                                                                |   |           | (1,174,690  | ) |
| Total                  liabilities and shareholders’ deficit                                                                                                |   | $              | 4,598,354   |   |

----

**ALPHA          INNOTECH CORP.**

**Consolidated      Statements of Operations **

*For      the Years Ended December 31, 2006 and 2005 *

|                                                                     |   | **2006**  |       | **2005**  |   |
|--------------------------------------------------------------------------|--------|----------------|------------|----------------|--------|
| Revenue                                                                  |   | $              | 13,253,844 |           | $      | 12,050,762 |   |
|                                                                     |   |           |       |           |   |   |   |
| Cost                  of goods sold                                      |   |           | 6,314,064  |           |   | 6,409,774 |   |
| Gross                  profit                                            |   |           | 6,939,780  |           |   | 5,640,988 |   |
| Operating                  costs and expenses:                           |   |           |            |           |   |  |   |
| Sales                  and marketing                                     |   |           | 4,064,723  |           |   | 4,732,602 |   |
| Research                  and development                                |   |           | 1,227,324  |           |   | 1,573,017 |   |
| General                  and administrative                              |   |           | 2,380,836  |           |   | 1,536,634 |   |
| Total                  operating costs and expenses                      |   |           | 7,672,883  |           |   | 7,842,253 |   |
| Loss                  from operations                                    |   |           | (733,103   | )              |   | (2,201,265 | ) |
|                                                                     |   |           |       |           |   |   |   |
| Other                  income (expense):                                 |   |           |            |           |   |  |   |
| Interest                  expense                                        |   |           | (318,630   | )              |   | (307,151 | ) |
| Other                  income (expense), net                             |   |           | 53,479     |           |   | 13,473 |   |
| Total                  other income (expense)                            |   |           | (265,151   | )              |   | (293,678 | ) |
| Net                  loss                                                |   |           | (998,254   | )              |   | (2,494,943 | ) |
|                                                                     |   |           |       |           |   |   |   |
| Accretions                  on redeemable convertible preferred stock    |   |           | —    |           |   | (631,461 | ) |
| Net                  loss applicable to common shareholders              |   | $              | (998,254   | )              | $      | (3,126,404 | ) |
| Net                  loss per share - basic and diluted                  |   | $              | (0.10      | )              | $      | (0.80 | ) |
| Weighted                  average shares outstanding - basic and diluted |   |           | 9,880,221  |           |   | 3,888,451 |   |

----

**ALPHA            INNOTECH CORP.**

**Consolidated      Statements of Changes in Shareholders’ Deficit **

*For      the Years Ended December 31, 2006 and 2005 *

|                                                              |   | **Redeemable                  Convertible Preferred Stock**  |        |                                  |   |                                    |   |             |       |                                      |   |             |   |                                 |      |                       |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|-------------|---------------------------------------|--------|-----------------------------------------|--------|------------------|------------|-------------------------------------------|--------|------------------|--------|--------------------------------------|-----------|----------------------------|--------|
|                                                              |   | **Series                  A**                                |        | **Series                  A-1**  |   | **Common                  Stock**  |   |             |       | **Treasury                  Stock**  |   |             |   |                                 |      |
|                                                              |   | **Number****of****Shares**                                        |        | **Amount**                       |   | **Number****of****Shares**              |   | **Amount**  |       | **Number****of****Shares**                |   | **Amount**  |   | **Additional****Paid-in****Capital** |      | **Number****of****Shares** |   | **Amount**  |   |  **Accumulated                  Deficit** |   |  **Total** |   |
| Balance                  at January 1, 2005                  |   |                                                              | 10,533,334  |                                  | $      | 10,273,256                              |   |             | 7,343,418  |                                      | $      | 2,180,733        |   |                                 | 2,648,980 |                       | $      | 26,490 |   | $ | 1,120,455 |   |   | — |   | $ | — |   | $ | (14,249,003 | ) | $ | (13,102,058 | ) |
| Accretion                  of preferred stock to redemption value |   |                                                              | —     |                                  |   | 21,055                                  |   |             | —    |                                      |   | 4,224            |   |                                 | —   |                       |   | — |   |   | — |   |   | — |   |   | — |   |   | (25,279 | ) |   | (25,279 | ) |
| Accretion                  of cumulative preferred dividend       |   |                                                              | —     |                                  |   | 474,000                                 |   |             | —    |                                      |   | 132,182          |   |                                 | —   |                       |   | — |   |   | — |   |   | — |   |   | — |   |   | (606,182 | ) |   | (606,182 | ) |
| Exercise                  of stock option for cash                |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | 350       |                       |   | 3 |   |   | 845 |   |   | — |   |   | — |   |   | — |   |   | 848 |   |
| Issuance                  of common stock warrants                |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | —   |                       |   | — |   |   | 130,933 |   |   | — |   |   | — |   |   | — |   |   | 130,933 |   |
| Conversion                  of preferred stock                    |   |                                                              | (10,533,334 | )                                     |   | (10,768,311                             | )      |             | (7,343,418 | )                                         |   | (2,317,139       | )      |                                 | 5,423,152 |                       |   | 54,232 |   |   | 13,031,218 |   |   | — |   |   | — |   |   | — |   |   | 13,085,450 |   |
| Effect                  of reverse merger                         |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | 1,653,327 |                       |   | 16,533 |   |   | 2,420,227 |   |   | — |   |   | — |   |   | — |   |   | 2,436,760 |   |
| Net                  loss                                         |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | —   |                       |   | — |   |   | — |   |   | — |   |   | — |   |   | (2,494,943 | ) |   | (2,494,943 | ) |
| Balance                  at December 31, 2005                |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | 9,725,809 |                       |   | 97,258 |   |   | 16,703,678 |   |   | — |   |   | — |   |   | (17,375,407 | ) |   | (574,471 | ) |
|                                                              |   |                                                              |             |                                  |   |                                         |   |             |            |                                      |   |                  |   |                                 |           |                       |   |  |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| Exercise                  of warrants                             |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | 165,584   |                       |   | 1,656 |   |   | 12,832 |   |   | — |   |   | — |   |   | — |   |   | 14,488 |   |
| Repurchase                  of common stock                       |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | —   |                       |   | — |   |   | — |   |   | 4,746 |   |   | (8,068 | ) |   | — |   |   | (8,068 | ) |
| Issuance                  of common stock warrant                 |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | —   |                       |   | — |   |   | 94,353 |   |   | — |   |   | — |   |   | — |   |   | 94,353 |   |
| Stock                  based compensation                         |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | —   |                       |   | — |   |   | 297,262 |   |   | — |   |   | — |   |   | — |   |   | 297,262 |   |
| Net                  loss                                         |   |                                                              | —     |                                  |   | —                                 |   |             | —    |                                      |   | —          |   |                                 | —   |                       |   | — |   |   | — |   |   | — |   |   | — |   |   | (998,254 | ) |   | (998,254 | ) |
| Balance                  at December 31, 2006                |   |                                                              | —     |                                  | $      | —                                 |   |             | —    |                                      | $      | —          |   |                                 | 9,891,393 |                       | $      | 98,914 |   | $ | 17,108,125 |   |   | 4,746 |   | $ | (8,068 | ) | $ | (18,373,661 | ) | $ | (1,174,690 | ) |

----

**ALPHA            INNOTECH CORP.**

**Consolidated      Statements of Cash Flows **

*For      the Years Ended December 31, 2006 and 2005 *

|                                                                                                                |   | **2006**  |     | **2005**  |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------|----------|----------------|--------|
| Cash                  flows from operating activities:                                                              |   |           |     |           |   |
| Net                  loss                                                                                           |   | $              | (998,254 | )              | $      | (2,494,943 | ) |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |           |     |           |   |   |   |
| Depreciation                  and amortization                                                                      |   |           | 565,668  |           |   | 578,800 |   |
| Allowance                  for sales returns and doubtful accounts                                                  |   |           | 28,711   |           |   | 39,519 |   |
| Allowance                  for excess and obsolete inventory                                                        |   |           | (14,025  | )              |   | (24,922 | ) |
| Provision                  for demo equipment                                                                       |   |           | (46,825  | )              |   | 15,000 |   |
| Gain                  on disposal of property and equipment                                                         |   |           | 1,165    |           |   | 2,736 |   |
| Accretion                  of debt discount to interest expense                                                     |   |           | 8,421    |           |   | — |   |
| Warrants                  issued in lieu of compensation                                                            |   |           | —  |           |   | 130,933 |   |
| Share-based                  compensation                                                                           |   |           | 297,262  |           |   | — |   |
| Change                  in operating assets and liabilities:                                                        |   |           |     |           |   |   |   |
| Accounts                  receivables                                                                               |   |           | 192,448  |           |   | (474,535 | ) |
| Inventory                                                                                                           |   |           | 332,484  |           |   | (202,496 | ) |
| Prepaid                  expenses and other current assets                                                          |   |           | 22,463   |           |   | (18,950 | ) |
| Other                  assets                                                                                       |   |           | (14,982  | )              |   | 3,345 |   |
| Accounts                  payable                                                                                   |   |           | 111,457  |           |   | (145,943 | ) |
| Accrued                  liabilities                                                                                |   |           | (108,672 | )              |   | (95,204 | ) |
| Deferred                  revenue                                                                                   |   |           | 120,904  |           |   | 199,927 |   |
| Other                  liabilities                                                                                  |   |           | (19,725  | )              |   | 46,589 |   |
| Net                  cash provided by (used in) operating activities                                                |   |           | 478,500  |           |   | (2,440,144 | ) |
| Cash                  flows from investing activities:                                                              |   |           |     |           |   |   |   |
| Cash                  acquired in reverse merger                                                                    |   |           | —  |           |   | 2,033,000 |   |
| Purchase                  of property and equipment                                                                 |   |           | (397,638 | )              |   | (334,133 | ) |
| Net                  cash provided by (used in) investing activities                                                |   |           | (397,638 | )              |   | 1,698,867 |   |
| Cash                  flows from financing activities:                                                              |   |           |     |           |   |   |   |
| Proceeds                  from borrowing of debt obligation                                                         |   |           | 37,709   |           |   | 1,645,920 |   |
| Repayment                  of debt obligation                                                                       |   |           | (600,000 | )              |   | (400,000 | ) |
| Proceeds                  from issuance of convertible notes                                                        |   |           | 375,000  |           |   | — |   |
| Proceeds                  from exercise of common stock options                                                     |   |           | —  |           |   | 848 |   |
| Proceeds                  from exercise of warrants                                                                 |   |           | 14,488   |           |   | — |   |
| Repurchase                  of common stock                                                                         |   |           | (8,068   | )              |   | — |   |
| Net                  cash provided by (used in) financing activities                                                |   |           | (180,871 | )              |   | 1,246,768 |   |
| Net                  increase (decrease) in cash and cash equivalents                                               |   |           | (100,009 | )              |   | 505,491 |   |
| —                                                                                                             |   |           |     |           |   |   |   |
| Cash                  and cash equivalents at the beginning of the year                                             |   |           | 545,665  |           |   | 40,174 |   |
| Cash                  and cash equivalents at the end of the year                                                   |   | $              | 445,656  |           | $      | 545,665 |   |

----

**ALPHA          INNOTECH CORP.**

**Consolidated      Statements of Cash Flows **

*For      the Years Ended December 31, 2006 and 2005 *

|                                                                                     |   | **2006**  |    | **2005**  |   |
|------------------------------------------------------------------------------------------|--------|----------------|---------|----------------|--------|
| Supplemental                  disclosures of cash flow information:                      |   |           |    |           |   |
| Interest                  paid during the year                                           |   | $              | 318,630 |           | $      | 294,321 |   |
| Income                  taxes paid during the year                                       |   | $              | — |           | $      | — |   |
| Supplemental                  disclosure of non-cash investing and financing activities: |   |           |    |           |   |  |   |
| Accretion                  of preferred stock to redemption value                        |   | $              | — |           | $      | 631,461 |   |
| Issuance                  of common stock warrant                                        |   | $              | 94,353  |           | $      | — |   |
| Conversion                  of preferred stock                                           |   | $              | — |           | $      | 13,085,450 |   |
| Elimination                  of Xtrana, Inc.’s loan to Alpha Innotech Corporation  |   | $              | — |           | $      | 500,000 |   |
| Detail                  of reverse merger:                                               |   |           |    |           |   |  |   |
| Cash                                                                                     |   | $              | — |           | $      | (2,033,000 | ) |
| Prepaid                  expenses                                                        |   |           | — |           |   | (23,000 | ) |
| Notes                  receivable from Alpha Innotech Corporation                        |   |           | — |           |   | (500,000 | ) |
| Accounts                  payable                                                        |   |           | — |           |   | 26,000 |   |
| Accrued                  liabilities                                                     |   |           | — |           |   | 91,000 |   |
| Other                  liabilities                                                       |   |           | — |           |   | 2,240 |   |
| Common                  stock issued to Xtrana, Inc.                                     |   |           | — |           |   | 2,436,760 |   |
| Cash                  paid in 2005                                                       |   |           | — |           |   | — |   |
| Cash                  acquired in reverse merger                                         |   |           | — |           |   | 2,033,000 |   |
| Cash                  acquired in reverse merger                                         |   | $              | — |           | $      | 2,033,000 |   |

----

**ALPHA            INNOTECH CORP.**

**Notes            to consolidated financial            statements**

**1.**
**Summary      of Significant Accounting Policies **

**Nature      of Operations**

**Merger**

**Management’s      Plan -**

**Going      Concern**

**Basis        of Presentation - **

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

**Principles      of Consolidation - **

**Uses      of Estimates**
**-**

**Fair      Value of Financial Instruments - **

**Foreign      Currencies**
**-**

**Cash      and Cash Equivalents -**

**Inventories**

**Property      and Equipment**

**Income      Taxes - **

**Impairment      of Long-lived Assets**
**-**

**Revenue      Recognition**
**-**

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

**Advertising      Expenses - **

**Research      and Development**

**Software      Development Costs - **

**Share-Based      Employee Compensation **

|                                              |   | **2006** |    |
|---------------------------------------------------|--------|----------|---------|
| Cost                    of goods sold             |   | $        | 7,191   |   |
| Sales                    and marketing            |   |     | 16,861  |   |
| Research                    and development       |   |     | 14,096  |   |
| General                    and administrative     |   |     | 259,114 |   |
| Total                    share-based compensation |   | $        | 297,262 |   |

**Stock            Options**

|                                                                 |   | Number                    of Shares |     | Weighted                    Average Grant Date Fair Value |   |
|----------------------------------------------------------------------|--------|-------------------------------------|----------|-----------------------------------------------------------|--------|
| Non-vested                    stock outstanding at December 31, 2005 |   |                                | 124,287  |                                                      | $      | 1.40 |   |
| Granted                                                              |   |                                | 476,001  |                                                      |   | 1.40 |   |
| Vested                                                               |   |                                | (140,425 | )                                                         |   | 0.89 |   |
| Forfeited                                                            |   |                                | (70,297  | )                                                         |   | 2.29 |   |
| Non-vested                    stock outstanding at December 31, 2006 |   |                                | 389,566  |                                                      | $      | 1.42 |   |

----

**ALPHA            INNOTECH CORP.**

**Notes            to consolidated financial statements**

|                                                                      |   | **2005** |       |
|---------------------------------------------------------------------------|--------|----------|------------|
| Net                    loss applicable to common stockholders as reported |   | $        | (3,126,404 | ) |
| Effect                    of stock-based compensation per SFAS 123        |   |     | (37,524    | ) |
| Net                    loss applicable to common stockholders - pro forma |   | $        | (3,163,928 | ) |

|                                                                      |   |     |   |
|---------------------------------------------------------------------------|--------|----------|--------|
|                                                                      |   | **2005** |   |
| Basic                    and Diluted:                                     |   |     |   |
| Net                    loss per share as reported                         |   | $        | (0.80  | ) |
| Effect                    of stock-based compensation per SFAS 123        |   |     | (0.01  | ) |
| Net                    loss applicable to common stockholders - pro forma |   | $        | (0.81  | ) |

|                                 |   | **2006** |                      | **2005** |   |
|--------------------------------------|--------|----------|---------------------------|----------|--------|
| Risk-free                  interest  |   |     | 4.74                      | %        |   | 4.62 | % |
| Expected                  life       |   |     | 10                  Years |     |   | 10                  Years |   |
| Expected                  volatility |   |     | 73                        | %        |   | 70 | % |
| Expected                  dividend   |   |     | —                   |     |   | — |   |

|                                                                |   | Shares |    | Weighted                    -Average Exercise Price per Share |   | Weighted-Average                    Remaining Contractual Terms in Years |   | Aggregate                    Intrinsic Value |   |
|---------------------------------------------------------------------|--------|--------|---------|---------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|----------------------------------------------|--------|
| Outstanding                    at December 31, 2005                 |   |   | 475,117 |                                                          | $      | 3.21                                                                     |   |                                         |   |   |   |   |   |
| Grants                                                              |   |   | 476,001 |                                                          |   | 1.40                                                                     |   |                                         |   |   |   |   |   |
| Exercises                                                           |   |   | — |                                                          |   |                                                                     |   |                                         |   |   |   |   |   |
| Forfeitures                                                         |   |   | (53,693 | )                                                             |   | 1.59                                                                     |   |                                         |   |   |   |   |   |
| Expirations                                                         |   |   | (16,604 | )                                                             |   | 4.58                                                                     |   |                                         |   |   |   |   |   |
| Outstanding                    at December 31, 2006                 |   |   | 880,821 |                                                          | $      | 2.30                                                                     |   |                                         | 7.36   |   | $ | 66,000 |   |
| Exercisable                    at December 31, 2006                 |   |   | 491,255 |                                                          | $      | 3.00                                                                     |   |                                         | 5.85   |   | $ | 11,002 |   |
| Vested                    and expected to vest at December 31, 2006 |   |   | 491,255 |                                                          | $      | 3.00                                                                     |   |                                         | 5.85   |   | $ | 11,002 |   |

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

**Loss      Per Share**
**-**

|                                                                                                        |   | **2006** |    | **2005**  |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------------|--------|
| Shares                  issuable upon exercise of stock options                                             |   |     | 54,818  |           |   | — |   |
| Shares                  issuable upon exercise of warrants                                                  |   |     | 398,214 |           |   | 573,307 |   |
| Shares                  issuable upon conversion of redeemable convertible preferred                  stock |   |     | — |           |   | 4,293,329 |   |
| Denominator                  for basic and diluted calculations                                             |   |     | 453,032 |           |   | 4,866,63 |   |

**Comprehensive      loss**
**-**

**Concentration      of Credit Risk - **

**Material      Customers **

**Segments**

***Recent      Accounting Pronouncements -***

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

**2.**
**Balance      Sheet Components **

|                                                  |   | **2006** |      |
|-------------------------------------------------------|--------|----------|-----------|
| Accounts                  receivable                  |   | $        | 2,340,022 |   |
| Less                  allowance for sales returns     |   |     | (143,453  | ) |
| Less                  allowance for doubtful accounts |   |     | (7,158    | ) |
| Accounts                  receivable, net             |   | $        | 2,189,411 |   |

|                                                              |   | **2006** |    |
|-------------------------------------------------------------------|--------|----------|---------|
| Raw                  materials                                    |   | $        | 571,693 |   |
| Inventory                  in transit                             |   |     | 103,691 |   |
| Less                  allowance for excess and obsolete inventory |   |     | (41,834 | ) |
| Inventory,                  net                                   |   | $        | 633,550 |   |

|                                                            |   | **2006** |       |
|-----------------------------------------------------------------|--------|----------|------------|
| Machinery                  and equipment                        |   | $        | 404,687    |   |
| Furniture                  and fixtures                         |   |     | 208,201    |   |
| Leasehold                  improvements                         |   |     | 1,507,500  |   |
| Loaner                  and demonstration units                 |   |     | 812,188    |   |
| Computers                                                       |   |     | 309,072    |   |
| Software                                                        |   |     | 90,517     |   |
| Total                  property and equipment                   |   |     | 3,332,165  |   |
| Less                  accumulated depreciation and amortization |   |     | (2,283,259 | ) |
| Property                  and equipment, net                    |   | $        | 1,048,906  |   |

|                                              |   | **2006** |    |
|---------------------------------------------------|--------|----------|---------|
| Payroll                  and related costs        |   | $        | 412,877 |   |
| Warranty                                          |   |     | 135,773 |   |
| Audit                  and tax accrual            |   |     | 56,500  |   |
| Finder’s                  fee               |   |     | 175,000 |   |
| Consultant                  and board member fees |   |     | 68,930  |   |
| Other                                             |   |     | 126,586 |   |
| Accrued                  liabilities              |   | $        | 975,666 |   |

----

**ALPHA            INNOTECH CORP.**

**Notes            to consolidated financial statements**

**3.**
**Debt      **

|                                                                |   | **2006**  |       |
|---------------------------------------------------------------------|--------|----------------|------------|
| Alexandria                  Finance, LLC Term Loan                  |   | $              | 800,000    |   |
| BFI                  Business Finance Line of Credit                |   |           | 993,675    |   |
| ETP                  Finance Convertible Note, net of debt discount |   |           | 289,068    |   |
| Total                  debt                                         |   |           | 2,082,743  |   |
| Less                  current portion                               |   |           | (1,593,675 | ) |
| Debt,                  net of current portion                       |   | $              | 489,068    |   |

| Year                  ending December 31:                         |   |   |    |
|-------------------------------------------------------------------|--------|--------|---------|
| 2011                                                              |   |   | 289,068 |   |
| ETP/FBR                  Venture Capital II, LLC Convertible Note |   | $      | 289,068 |   |

| Year                  ending December 31:          |   |   |    |
|----------------------------------------------------|--------|--------|---------|
| 2007                                               |   | $      | 600,000 |   |
| 2008                                               |   |   | 200,000 |   |
| Alexandria                  Finance, LLC Term Loan |   | $      | 800,000 |   |

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

**4.**
**Commitments        and Contingencies **

| Year                  ending December 31:  |   |   |      |
|-------------------------------------------------|--------|--------|-----------|
| 2007                                            |   | $      | 586,887   |   |
| 2008                                            |   |   | 598,625   |   |
| 2009                                            |   |   | 610,597   |   |
| 2010                                            |   |   | 622,809   |   |
| 2011                                            |   |   | 581,570   |   |
| Total                  minimum lease obligation |   | $      | 3,000,488 |   |

**5.**
**Income      Taxes **

|                                              |   | **2006**  |       | **2005** |   |
|---------------------------------------------------|--------|----------------|------------|----------|--------|
| Net                  operating loss carryforwards |   | $              | 3,626,096  |     | $      | 3,402,884 |   |
| Research                  and development credits |   |           | 665,141    |     |   | 544,261 |   |
| Reserves                  and accruals            |   |           | 1,191,544  |     |   | 1,171,141 |   |
| Total                                             |   |           | 5,482,781  |     |   | 5,118,286 |   |
| Less                  valuation allowance         |   |           | (5,482,781 | )        |   | (5,118,286 | ) |
| Deferred                  taxes                   |   | $              | —    |     | $      | — |   |

**6.**
**Common      Stock **

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

|                            |   | **Common                  Stock Warrants****Outstanding                  at****December 31,                  2006** |    | **Common                  Stock Warrants****Exercisable                  at December 31, 2006** |   |
|---------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------|--------|
|  **Exercise****Price**     |   | **Number****Outstanding**                                                                                                |    | **Weighted****Average****Remaining****Contractual****Life****In                  Years**             |   | **Weighted****Average****Exercise****Price** |   | **Number****Exercisable**  |   | **Weighted****Average****Exercise****Price** |   |
| $    0.0875 |   |                                                                                                                     | 432,627 |                                                                                                 |   | 4.53 |   | $ | 0.0875 |   |   | 432,627 |   | $ | 0.0875 |   |
| $    1.2000 |   |                                                                                                                     | 125,000 |                                                                                                 |   | 9.56 |   | $ | 1.2000 |   |   | 125,000 |   | $ | 1.2000 |   |
| $    1.7500 |   |                                                                                                                     | 102,861 |                                                                                                 |   | 5.27 |   | $ | 1.7500 |   |   | 102,861 |   | $ | 1.7500 |   |
| $    8.5900 |   |                                                                                                                     | 22,500  |                                                                                                 |   | 3.34 |   | $ | 8.5900 |   |   | 22,500 |   | $ | 8.5900 |   |
| $  14.6900            |   |                                                                                                                     | 5,000   |                                                                                                 |   | 3.17 |   | $ | 14.6900 |   |   | 5,000 |   | $ | 14.6900 |   |
| $  18.7500            |   |                                                                                                                     | 5,000   |                                                                                                 |   | 0.25 |   | $ | 18.7500 |   |   | 5,000 |   | $ | 18.7500 |   |
|                            |   |                                                                                                                     | 692,988 |                                                                                                 |   |   |   |   |   |   |   | 692,988 |   |   |   |   |

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

|                                               |   | **Shares****Available****For****Grant** |      | **Options****Outstanding**  |   | **Weighted****Average****Exercise****Price                  Per****Share** |   | **Weighted****Average****Aggregate****Price** |    |
|----------------------------------------------------|--------|-----------------------------------------|-----------|----------------------------------|--------|----------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
| Balance                  at January 1, 2005   |   |                                    | 416,905   |                             |   | 518,930                                                                    |   |                                          | 3.43    |   |   | 1,779,994 |   |
| Granted                                            |   |                                    | (119,604  | )                                |   | 119,604                                                                    |   |                                          | 1.65    |   |   | 197,347 |   |
| Exercised                                          |   |                                    | —   |                             |   | (350                                                                       | )      |                                          | 2.42    |   |   | (848 | ) |
| Cancelled                                          |   |                                    | 65,700    |                             |   | (65,700                                                                    | )      |                                          | 2.60    |   |   | (170,820 | ) |
| Expired                                            |   |                                    | 97,367    |                             |   | (97,367                                                                    | )      |                                          | 2.89    |   |   | (281,391 | ) |
| Balance                  at December 31, 2005 |   |                                    | 460,368   |                             |   | 475,117                                                                    |   |                                          | 3.21    |   |   | 1,524,282 |   |
| Authorized                  under the 2006 Plan    |   |                                    | 1,000,000 |                             |   | —                                                                    |   |                                          | — |   |   | — |   |
| Granted                                            |   |                                    | (476,001  | )                                |   | 476,001                                                                    |   |                                          | 1.40    |   |   | 665,643 |   |
| Exercised                                          |   |                                    | —   |                             |   | —                                                                    |   |                                          | — |   |   | — |   |
| Cancelled                                          |   |                                    | 53,693    |                             |   | (53,693                                                                    | )      |                                          | 1.59    |   |   | (85,198 | ) |
| Expired                                            |   |                                    | 14,279    |                             |   | (16,604                                                                    | )      |                                          | 4.58    |   |   | (76,088 | ) |
| Balance                  at December 31, 2006 |   |                                    | 1,052,339 |                             |   | 880,821                                                                    |   |                                          | 2.30    |   |   | 2,028,639 |   |

|                                      |   | **Common                  Stock Options****Outstanding                  at****December 31,                  2006** |    | **Common                  Stock Options****Exercisable                  at****December 31,                  2006** |   |
|-------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------------------------|--------|
| **Exercise****Price**                     |   | **Number****Outstanding**                                                                                               |    | **Weighted****Average****Remaining****Contractual****Life****In                  Years**                                |   | **Exercise****Price** |   | **Number****Exercisable** |   | **Exercise****Price** |   |
| $      0.95 |   |                                                                                                                    | 60,000  |                                                                                                                    |   | 9.83 |   | $ | 0.95 |   |   | 10,002 |   | $ | 0.95 |   |
| $      1.35 |   |                                                                                                                    | 156,792 |                                                                                                                    |   | 9.38 |   | $ | 1.35 |   |   | 22,796 |   | $ | 1.35 |   |
| $      1.40 |   |                                                                                                                    | 29,932  |                                                                                                                    |   | 3.85 |   | $ | 1.40 |   |   | 29,932 |   | $ | 1.40 |   |
| $      1.50 |   |                                                                                                                    | 40,000  |                                                                                                                    |   | 8.93 |   | $ | 1.50 |   |   | 40,000 |   | $ | 1.50 |   |
| $      1.53 |   |                                                                                                                    | 208,333 |                                                                                                                    |   | 9.27 |   | $ | 1.53 |   |   | 45,833 |   | $ | 1.53 |   |
| $      1.66 |   |                                                                                                                    | 56,403  |                                                                                                                    |   | 8.34 |   | $ | 1.66 |   |   | 20,743 |   | $ | 1.66 |   |
| $      1.92 |   |                                                                                                                    | 8,343   |                                                                                                                    |   | 8.05 |   | $ | 1.92 |   |   | 5,285 |   | $ | 1.92 |   |
| $      2.30 |   |                                                                                                                    | 11,000  |                                                                                                                    |   | 5.60 |   | $ | 2.30 |   |   | 11,000 |   | $ | 2.30 |   |
| $      2.62 |   |                                                                                                                    | 100,024 |                                                                                                                    |   | 5.38 |   | $ | 2.62 |   |   | 95,670 |   | $ | 2.62 |   |
| $      2.89 |   |                                                                                                                    | 120,006 |                                                                                                                    |   | 4.19 |   | $ | 2.89 |   |   | 120,006 |   | $ | 2.89 |   |
| $      3.70 |   |                                                                                                                    | 49,500  |                                                                                                                    |   | 5.31 |   | $ | 3.70 |   |   | 49,500 |   | $ | 3.70 |   |
| $      6.60 |   |                                                                                                                    | 2,000   |                                                                                                                    |   | 1.83 |   | $ | 6.60 |   |   | 2,000 |   | $ | 6.60 |   |
| $      7.00 |   |                                                                                                                    | 6,000   |                                                                                                                    |   | 5.47 |   | $ | 7.00 |   |   | 6,000 |   | $ | 7.00 |   |
| $      7.81 |   |                                                                                                                    | 1,500   |                                                                                                                    |   | 4.25 |   | $ | 7.81 |   |   | 1,500 |   | $ | 7.81 |   |
| $      9.38 |   |                                                                                                                    | 200     |                                                                                                                    |   | 3.05 |   | $ | 9.38 |   |   | 200 |   | $ | 9.38 |   |
| $      9.40 |   |                                                                                                                    | 15,663  |                                                                                                                    |   | 2.42 |   | $ | 9.40 |   |   | 15,663 |   | $ | 9.40 |   |
| $    10.00            |   |                                                                                                                    | 6,000   |                                                                                                                    |   | 3.61 |   | $ | 10.00 |   |   | 6,000 |   | $ | 10.00 |   |
| $    10.30            |   |                                                                                                                    | 1,500   |                                                                                                                    |   | 3.61 |   | $ | 10.30 |   |   | 1,500 |   | $ | 10.30 |   |
| $    11.56            |   |                                                                                                                    | 4,500   |                                                                                                                    |   | 1.42 |   | $ | 11.56 |   |   | 4,500 |   | $ | 11.56 |   |
| $    16.87            |   |                                                                                                                    | 500     |                                                                                                                    |   | 3.18 |   | $ | 16.87 |   |   | 500 |   | $ | 16.87 |   |
| $    23.13            |   |                                                                                                                    | 2,125   |                                                                                                                    |   | 0.40 |   | $ | 23.13 |   |   | 2,125 |   | $ | 23.13 |   |
| $    24.38            |   |                                                                                                                    | 500     |                                                                                                                    |   | 1.24 |   | $ | 24.38 |   |   | 500 |   | $ | 24.38 |   |
|                                      |   |                                                                                                                    | 880,821 |                                                                                                                    |   |   |   |   |   |   |   | 491,255 |   |   |   |   |

----

**ALPHA          INNOTECH CORP.**

**Notes          to consolidated financial statements**

**8.**
**Employee      Benefits Plan**

**9.**
**Business      Segment Information**

|                                  |   | **2006**  |       | **2005** |   |
|---------------------------------------|--------|----------------|------------|----------|--------|
| United                  States        |   | $              | 7,439,344  |     | $      | 7,888,428 |   |
| Asia                  and Pacific Rim |   |           | 2,203,397  |     |   | 2,266,284 |   |
| Europe                                |   |           | 2,669,520  |     |   | 984,680 |   |
| Canada                                |   |           | 674,249    |     |   | 639,223 |   |
| Other                                 |   |           | 267,334    |     |   | 272,147 |   |
| Total                  revenue        |   | $              | 13,253,844 |     | $      | 12,050,762 |   |

|                                     |   | **2006**  |      |
|------------------------------------------|--------|----------------|-----------|
| United                  States           |   | $              | 1,140,213 |   |
| International                            |   |           | —   |   |
| Total                  long-lived assets |   | $              | 1,140,213 |   |

----

**ALPHA            INNOTECH CORP.**

**Notes            to consolidated financial statements**

**10.**
**Quarterly      Financial Data (Unaudited)**

|                                                                     |   | **For                  the Year Ended December 31, 2006**  |      |
|--------------------------------------------------------------------------|--------|----------------------------------------------------------------------|-----------|
|                                                                     |   | **First****Quarter**                                                 |      | **Second****Quarter** |   | **Third****Quarter** |   | **Fourth****Quarter** |   |
| Revenue                                                                  |   | $                                                                    | 2,958,794 |   | $ | 3,192,617 |   | $ | 3,354,790 |   | $ | 3,747,643 |   |
|                                                                     |   |                                                                 |      |   |   |   |   |   |   |   |   |   |   |
| Cost                  of goods sold                                      |   |                                                                 | 1,507,910 |   |   | 1,508,802 |   |   | 1,503.344 |   |   | 1,794,008 |   |
| Gross                  profit                                            |   |                                                                 | 1,450,884 |   |   | 1,683,815 |   |   | 1,851,446 |   |   | 1,953,635 |   |
| Operating                  expenses:                                     |   |                                                                 |           |   |   |  |   |   |  |   |   |  |   |
| Sales                  and marketing                                     |   |                                                                 | 982,531   |   |   | 1,158,046 |   |   | 933,044 |   |   | 991,102 |   |
| Research                  and development expenses                       |   |                                                                 | 327,228   |   |   | 410,245 |   |   | 246,256 |   |   | 243,595 |   |
| General                  and administrative expenses                     |   |                                                                 | 504,092   |   |   | 606,946 |   |   | 639,940 |   |   | 629,858 |   |
| Total                  operating expenses                                |   |                                                                 | 1,813,851 |   |   | 2,175,237 |   |   | 1,819,240 |   |   | 1,864,555 |   |
| Loss                  from operations                                    |   |                                                                 | (362,967  | ) |   | (491,422 | ) |   | 32,206 |   |   | 89,080 |   |
|                                                                     |   |                                                                 |      |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                                 |   |                                                                 |           |   |   |  |   |   |  |   |   |  |   |
| Interest                  expense                                        |   |                                                                 | (84,475   | ) |   | (73,620 | ) |   | (77,918 | ) |   | (82,617 | ) |
| Other                  income (expense), net                             |   |                                                                 | 31,746    |   |   | (10,748 | ) |   | (2,354 | ) |   | 34,835 |   |
| Total                  other income (expense)                            |   |                                                                 | (52,729   | ) |   | (84,368 | ) |   | (80,272 | ) |   | (47,782 | ) |
| Net                  loss                                                |   |                                                                 | (415,696  | ) |   | (575,790 | ) |   | (48,066 | ) |   | 41,298 |   |
|                                                                     |   |                                                                 |      |   |   |   |   |   |   |   |   |   |   |
| Accretions                  on redeemable convertible preferred stock    |   |                                                                 | —   |   |   | — |   |   | — |   |   | — |   |
| Net                  loss applicable to common shareholders              |   | $                                                                    | (415,696  | ) | $ | (575,790 | ) | $ | (48,066 | ) | $ | 41,298 |   |
| Net                  loss per share - basis and diluted                  |   | $                                                                    | (0.04     | ) | $ | (0.06 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
| Weighted                  average shares outstanding - basic and diluted |   |                                                                 | 9,725,809 |   |   | 9,804,847 |   |   | 9,858,694 |   |   | 9,783,878 |   |

|                                                                     |   | **For                  the Year Ended December 31, 2005**  |      |
|--------------------------------------------------------------------------|--------|----------------------------------------------------------------------|-----------|
|                                                                     |   | **First****Quarter**                                                 |      | **Second****Quarter** |   | **Third****Quarter** |   | **Fourth****Quarter** |   |
| Revenue                                                                  |   | $                                                                    | 2,505,360 |   | $ | 2,513,254 |   | $ | 3,140,125 |   | $ | 3,892,023 |   |
|                                                                     |   |                                                                 |      |   |   |   |   |   |   |   |   |   |   |
| Cost                  of goods sold                                      |   |                                                                 | 1,405,295 |   |   | 1,367,733 |   |   | 1,716,242 |   |   | 1,920,504 |   |
| Gross                  profit                                            |   |                                                                 | 1,100,065 |   |   | 1,145,521 |   |   | 1,423,883 |   |   | 1,971,519 |   |
| Operating                  expenses:                                     |   |                                                                 |           |   |   |  |   |   |  |   |   |  |   |
| Sales                  and marketing                                     |   |                                                                 | 1,060,509 |   |   | 1,367,612 |   |   | 1,134,053 |   |   | 1,170,428 |   |
| Research                  and development expenses                       |   |                                                                 | 397,488   |   |   | 409,327 |   |   | 358,653 |   |   | 407,549 |   |
| General                  and administrative expenses                     |   |                                                                 | 285,337   |   |   | 488,633 |   |   | 336,074 |   |   | 426,590 |   |
| Total                  operating expenses                                |   |                                                                 | 1,743,334 |   |   | 2,265,572 |   |   | 1,828,780 |   |   | 2,004,567 |   |
| Loss                  from operations                                    |   |                                                                 | (643,269  | ) |   | (1,120,051 | ) |   | (404,897 | ) |   | (33,048 | ) |
|                                                                     |   |                                                                 |      |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                                 |   |                                                                 |           |   |   |  |   |   |  |   |   |  |   |
| Interest                  expense                                        |   |                                                                 | (43,006   | ) |   | (118,862 | ) |   | (79,808 | ) |   | (65,475 | ) |
| Other                  income (expense), net                             |   |                                                                 | 80        |   |   | 515 |   |   | (1,481 | ) |   | 14,359 |   |
| Total                  other income (expense)                            |   |                                                                 | (42,926   | ) |   | (118,347 | ) |   | (81,289 | ) |   | (51,116 | ) |
| Net                  loss                                                |   |                                                                 | (686,195  | ) |   | (1,238,398 | ) |   | (486,186 | ) |   | (84,164 | ) |
|                                                                     |   |                                                                 |      |   |   |   |   |   |   |   |   |   |   |
| Accretions                  on redeemable convertible preferred stock    |   |                                                                 | (217,506  | ) |   | (210,487 | ) |   | (203,468 | ) |   | — |   |
| Net                  loss applicable to common shareholders              |   | $                                                                    | (903,701  | ) | $ | (1,448,885 | ) | $ | (689,654 | ) | $ | (84,164 | ) |
| Net                  loss per share - basis and diluted                  |   | $                                                                    | (0.34     | ) | $ | (0.55 | ) | $ | (0.28 | ) | $ | (0.01 | ) |
| Weighted                  average shares outstanding - basic and diluted |   |                                                                 | 2,649,119 |   |   | 2,649,294 |   |   | 2,476,548 |   |   | 7,738,433 |   |

----

| Date:                  March 30, 2007 |   | Alpha                  Innotech Corp.                                                                                                                                                             |
|---------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |   |                                                                                                                                                                                              |
|                                  |   | /s/                  Ronald H. Bissinger                                                                                                                                                          |
|                                  |   | Ronald                  H. Bissinger                                                                                                                                                              |
|                                  |   | Chief                  Executive Officer and Chief Financial Officer(Principal                  Executive Officer, Principal Financial Officer and Principal Accounting                  Officer) |

**POWER      OF ATTORNEY **

**Ronald      H. Bissinger**

| **Signature**                                                                                       |   | **Title**                                                       |   | **Date**                          |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|-----------------------------------|
| /s/                    **Ronald                    H. Bissinger**                                   |   | **Chief                    Executive Officer**                  |   | March                    30, 2007 |
| **Ronald                    H. Bissinger**                                                          |   | (Principal                    Executive Officer)                |   |                              |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **Ronald                    H. Bissinger**                                   |   | **Chief                    Financial Officer**                  |   | March                    30, 2007 |
| **Ronald                    H. Bissinger**                                                          |   | (Principal                    Financial and Accounting Officer) |   |                              |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **William                    Snider**                                        |   | Chairman                                                        |   | March                    30, 2007 |
| **William                    Snider**                                                               |   |                                                            |   |                              |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **Haseeb                    Chaudhry****Haseeb                    Chaudhry** |   | Vice                    Chairman                                |   | March                    30, 2007 |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **Michael                    D. Bick, Ph. D.**                               |   | Director                                                        |   | March                    30, 2007 |
| **Michael                    D. Bick, Ph. D.**                                                      |   |                                                            |   |                              |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **James                    H. Chamberlain**                                  |   | Director                                                        |   | March                    30, 2007 |
| **James                    H. Chamberlain**                                                         |   |                                                            |   |                              |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **Nagesh                    Mhatre, Ph. D.**                                 |   | Director                                                        |   | March                    30, 2007 |
| **Nagesh                    Mhatre, Ph. D.**                                                        |   |                                                            |   |                              |
|                                                                                                |   |                                                            |   |                              |
| /s/                    **Darryl                    Ray, Ph. D.**                                    |   | Director                                                        |   | March                    30, 2007 |
| **Darryl                    Ray, Ph. D.**                                                           |   |                                                            |   |                              |

----

**ITEM 13.      EXHIBITS **

| **Number** | **Description**                                                                                                                                    |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.11       | Agreement                  and Plan of Merger dated as of December 14, 2004                                                                        |
|       |                                                                                                                                               |
| 2.22       | Amendment                  No. 1 to Agreement and Plan of Merger dated April 6,                  2005                                              |
|       |                                                                                                                                               |
| 2.33       | Amendment                  No. 2 to Agreement and Plan of Merger dated July 6,                  2005                                               |
|       |                                                                                                                                               |
| 2.44       | Amendment                  No. 3 to Agreement and Plan of Merger dated August 25,                  2005                                            |
|       |                                                                                                                                               |
| 3.15       | Certificate                  of Incorporation                                                                                                      |
|       |                                                                                                                                               |
| 3.1.15     | Certificate                  of Amendment to Certificate of Incorporation                                                                          |
|       |                                                                                                                                               |
| 3.26       | Bylaws                                                                                                                                             |
|       |                                                                                                                                               |
| 4.17       | 1993                  Stock Incentive Plan*                                                                                                        |
|       |                                                                                                                                               |
| 4.28       | 2000                  Stock Incentive Plan*                                                                                                        |
|       |                                                                                                                                               |
| 4.35       | Amended                  and Restated 1999 Stock Option Plan of Alpha Innotech                  Corporation*                                       |
|       |                                                                                                                                               |
| 4.45       | 2001                  Milestone Stock Option Plan of Alpha Innotech                  Corporation*                                                  |
|       |                                                                                                                                               |
| 4.59       | 2006                  Equity Incentive Plan*                                                                                                       |
|       |                                                                                                                                               |
| 4.65       | Secured                  Promissory Note Issued to Alexandria Dated April 8,                  2005                                                 |
|       |                                                                                                                                               |
| 4.75       | Loan                  and Security Agreement with BFI dated March 9, 2004                                                                          |
|       |                                                                                                                                               |
| 4.810      | Form                  of Convertible Note Issued to ETP/FBR Venture Capital II,                  LLC                                               |
|       |                                                                                                                                               |
| 4.910      | Form                  of Warrant Issued to ETP/FBR Venture Capital II, LLC                                                                         |
|       |                                                                                                                                               |
| 4.10  | Form                of Restricted Stock Award to Ronald Bissinger                                                                        |
|       |                                                                                                                                               |
| 10.110     | Form                  of Securities Purchase Agreement with ETP/FBR Venture Capital II,                  LLC                                       |
|       |                                                                                                                                               |
| 10.25      | Employment                  Agreement between Alpha Innotech Corporation and Haseeb Chaudhry                  dated May                  11, 2001* |

----

| 10.35  | Amendment                  No. 1 to Employment Agreement with Haseeb Chaudhry dated April 6,                  2005*.                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                             |
| 10.4   | Agreement                  and General Release with Haseeb Chaudhry dated October 27,                  2006*.                                    |
|   |                                                                                                                                             |
| 10.55  | Employment                  Agreement between Alpha Innotech Corporation and Darryl Ray dated                  May 11,                  2001*    |
|   |                                                                                                                                             |
| 10.65  | Amendment                  No. 1 to Employment Agreement with Darryl Ray dated April 6,                  2005.*                                  |
|   |                                                                                                                                             |
| 10.7   | Agreement                  and General Release with Darryl Ray dated March 31,                  2006*                                            |
|   |                                                                                                                                             |
| 10.811 | Employee                  offer letter to Ronald H. Bissinger*                                                                                   |
|   |                                                                                                                                             |
| 11.112 | Statement                  regarding computation of per share earnings                                                                           |
|   |                                                                                                                                             |
| 14.113 | Code                  of Ethics                                                                                                                  |
|   |                                                                                                                                             |
| 16.114 | Letter                  on change in certifying accountant                                                                                       |
|   |                                                                                                                                             |
| 21.115 | Subsidiaries                  of the small business issuer                                                                                       |
|   |                                                                                                                                             |
| 23.1   | Letter                  of Consent From Independent Registered Public Accounting Firm,                  Rowbotham                  & Company |
|   |                                                                                                                                             |
| 24.116 | Power                  of attorney                                                                                                               |
|   |                                                                                                                                             |
| 31.1   | Rule                  13a-14(a) Certification (CEO and CFO)                                                                                      |
|   |                                                                                                                                             |
| 32.1   | Section                  1350 Certification (CEO and CFO)                                                                                        |
|   |                                                                                                                                             |
|   |                                                                                                                                             |