##### Table of Contents



U.S. SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-KSB
  (Mark One)þ

ANNUAL REPORT UNDER SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2006o

TRANSITION REPORT UNDER SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File Number:
    000-23-661
      ROCKWELL MEDICAL TECHNOLOGIES,
    INC.
 (Name of small business issuer
    in its charter)
  Michigan

38-3317208(State or other jurisdiction
    of
    incorporation or  organization)

(I.R.S. Employer
    Identification No.)30142 Wixom Road
    Wixom, Michigan

48393(Zip Code)(Address of principal executive
    offices)   (248) 960-9009 (Issuers
    telephone number, including area code)
  Securities registered under Section 12(b) of the
    Exchange Act:
 Common Shares, no par value
  Name of each exchange on which registered:
 Nasdaq Stock Market
  Securities registered under Section 12 (g) of the
    Exchange Act:
 None
  o
  þ o
  Regulation S-B Form 10-KSB Form 10-KSB. o
  Rule 12b-2 o þ
        Form 10-KSB.
  o þ




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##### Table of Contents



PART I
  Item 1.
    Description
    of Business.  General
          How
    Hemodialysis Works
     1




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Dialysis
    Industry Trends
  3-10% African-American
    Our
    Strategy
    
    increasing our revenues through new innovative products, such as
    our
    Dri-Sate®
    Dry Acid Concentrate and
    SteriLyte®
    Liquid Bicarbonate,
    gaining FDA approval to market innovative products such as iron
    supplemented dialysate,
    acting as a single source supplier to our customers for the
    concentrates, chemicals and supplies necessary to support a
    hemodialysis providers operation,
    increasing our revenues by expanding our ancillary product line,
    offering our customers a higher level of delivery and customer
    service by using our own delivery vehicles and drivers, and
    expanding our market share in target regions, including regions
    where our proximity to customers will provide us with a
    competitive cost advantage and allow us to provide superior
    customer service levels.  Products
    Acid
    Concentrate
   2




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##### Table of Contents



Dri-Sate®
    Dry Acid Concentrate
    on-site.
  Bicarbonate
    SteriLyte®
    Liquid Bicarbonate
    Ancillary
    Products
    Iron
    Supplemented Dialysate
     3




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$10-12 million.
  Distribution
    and Delivery Operations
    and/or
   4




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Sales and
    Marketing
      Competition
  Dialysis
    Concentrate and Supplies Competition
         5




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##### Table of Contents



Iron
    Maintenance Therapy Market Competition
  ® ® ®
         6




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Quality
    Assurance and Control
        Government
    Regulation
        Medical
    Device Approval and Regulation
  pre-amendment
 7




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and/or
   8




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Drug
    Approval and Regulation
             9




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Other
    government regulations
      Product
    License Agreements
         10




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Trademarks &
    Patents
      Suppliers
    Customers
    Employees
    Research &
    Development
     11




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Where You
    Can Get Information We File with the SEC
  1-800-SEC-0330. http://www.sec.gov.
  http://www.rockwellmed.com. Form 10-KSB
  Risk
    Factors and Forward Looking Statements
      The
    dialysis provider market is highly concentrated in national and
    regional dialysis chains that account for the majority of our
    domestic revenue.
   12




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We
    operate in a very competitive market against substantially
    larger competitors with greater resources.
    Orders
    from our international distributors may not result in recurring
    revenue.
    Our new
    drug product requires FDA approval and expensive clinical trials
    before it can be marketed.
    Even if
    our new drug product is approved by the FDA it may not be
    successfully marketed.
      We depend
    on government funding of healthcare.
    We may
    not have sufficient cash to operate the business.
   13




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Shares
    eligible for future sale may affect the market price of our
    common shares.
    The
    market price of our securities may be volatile.
    We may
    not be successful in improving our gross profit margins and our
    business may remain unprofitable.
          We depend
    on key personnel.
   14




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Our
    business is highly regulated.
      Foreign
    approvals to market our new drug products may be difficult to
    obtain.
      Health
    care reform could adversely affect our business.
    Voting
    control and anti-takeover provisions reduce the likelihood that
    you will receive a takeover premium.
   15




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We may
    not have sufficient products liability insurance.
    Item 2.
    Description
    of Property.      Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders.   16




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PART II
  Item 5.
    Market
    for Common Equity, Related Stockholder Matters and Small
    Business Issuer Purchases of Equity Securities.      Sale PriceQuarter Ended

High


LowMarch 31, 2005


3.94



2.95June 30, 2005


3.50



2.70September 30, 2005


4.33



2.82December 31, 2005


5.30



3.40March 31, 2006


9.39



3.91June 30, 2006


8.60



5.94September 30, 2006


8.02



6.31December 31, 2006


7.74



6.86     Dividends
    Securities
    Authorized for Issuance Under Equity Compensation
    Plans
    Number of securities to beissued upon exercise of


Weighted average


Number of securities remainingoutstanding options,


exercise price of


available for future issuance underwarrants


outstanding options,


equity compensation plans (excludingand rights


warrants and rights


securities reflected in column (a))Plan Category

(a)


(b)


(c)Equity compensation plans approved
    by security holders


3,219,235


$
2.68



489,856Equity compensation plans not
    approved by security holders










Total


3,219,235


$
2.68



489,856  17




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Item 6.
    Managements
    Discussions and Analysis of Financial Condition and Plan of
    Operation.    Overview
           18




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Results
    of Operations
  For
    the year ended December 31, 2006 compared to the year ended
    December 31, 2005
  Sales
              Gross
    Profit
     19




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Selling,
    General and Administrative Expenses
    Research
    and Development
    Operating
    Income(Loss)
    Interest
    Income, net
    Income
    Tax Expense
    Net
    Income (Loss)
    Critical
    Accounting Estimates and Judgments
   20




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Revenue
    recognition and allowance for doubtful accounts
      Impairments
    of long-lived assets
  Accounting for the Impairment or
    Disposal of Long-Lived Assets Goodwill and Other Intangible Assets,
    Accounting
    for income taxes
    Liquidity
    and Capital Resources
   21




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sub-licensing
  Item 7.
    Financial
    Statements    Item 8.
    Changes
    In and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 8A.
    Controls
    and Procedures     22




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Item 8B.  Other
    Information
        PART III
  Item 9.
    Directors,
    Executive Officers, Promoters and Control Persons; Compliance
    With Section 16(a) of the Exchange Act.    Item 10.
    Executive
    Compensation.    Item 11.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters.  Form 10-KSB
 23




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##### Table of Contents



Item 12.
    Certain
    Relationships and Related Transactions.    Items 13.
    Exhibits.  Exhibits
  000-23-661.
  3
(i).1

Articles of Incorporation of the
    Company, incorporated by reference to Exhibit 3(i).1 to the
    Companys Registration Statement on
    Form SB-2,
    File
    No. 333-31991.3
(i).2

Certificate of Amendment to
    Articles of Incorporation of the Company, incorporated by
    reference to Exhibit 3(i).2 to the Companys
    Registration Statement on
    Form SB-2,
    File
    No. 333-31991.3
(i).3

Certificate of Correction to
    Articles of Incorporation of the Company, incorporated by
    reference to Exhibit 3(i).3 to the Companys
    Registration Statement on
    Form SB-2,
    File
    No. 333-31991.3
(i).4

Certificate of Amendment to
    Articles of Incorporation of the Company, incorporated by
    reference to Exhibit 3(i).4 to the Companys
    Registration Statement on
    Form SB-2,
    File
    No. 333-31991.3
(ii)

Bylaws of the Company,
    incorporated by reference to Exhibit 3(ii) to the
    Companys Registration Statement on
    Form SB-2,
    File
    No. 333-31991.*10
.1

Rockwell Medical Technologies,
    Inc. 1997 Stock Option Plan, incorporated by reference to
    Rockwells Proxy Statement for the Annual Meeting of
    Shareholders filed with the Securities and Exchange Commission
    on April 17, 2006.10
.2

Lease Agreement dated
    March 12, 2000 between the Company and DFW Trade
    Center III Limited Partnership incorporated by reference to
    the annual report on
    Form 10-KSB
    filed March 30, 2000.10
.3

Lease Agreement dated
    October 23, 2000 between the Company and
    International-Wixom, LLC incorporated by reference to the
    quarterly report on
    Form 10-QSB
    filed November 14, 2000.10
.4

Licensing Agreement between the
    Company and Ash Medical Systems, Inc. dated October 3, 2001
    with certain portions of the exhibit deleted under a request for
    confidential treatment under
    Rule 24b-2
    of the Securities Exchange Act of 1934 incorporated by reference
    to the annual report on
    Form 10-KSB
    filed April 1, 2002.10
.5

Licensing Agreement between the
    Company and Charak LLC and Dr. Ajay Gupta dated
    January 7, 2002 with certain portions of the exhibit
    deleted under a request for confidential treatment under
    Rule 24b-2
    of the Securities Exchange Act of 1934 incorporated by reference
    to the annual report on
    Form 10-KSB
    filed April 1, 2002.10
.6

Supply Agreement between the
    Company and DaVita, Inc. dated March 7, 2003 with certain
    portions of the exhibit deleted under a request for confidential
    treatment under
    Rule 24b-2
    of the Securities Exchange Act of 1934 incorporated by reference
    to the annual report on
    Form 10-KSB
    filed March 28, 2003.10
.8

Supply Agreement between the
    Company and DaVita, Inc. dated May 5, 2004 with certain
    portions of the exhibit deleted under a request for confidential
    treatment under
    Rule 24b-2
    of the Securities Exchange Act of 1934 incorporated by reference
    to the quarterly report on
    Form 10-QSB
    filed on May 17, 2004.10
.9

Loan and Security Agreement dated
    as of March 29, 2005 between the Company and Standard
    Federal Bank National Association incorporated by reference to
    the annual report on
    Form 10-KSB
    filed March 31, 2005. 24




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##### Table of Contents



10
.10

Revolving Note dated as of
    March 29, 2005 executed by the Company for the benefit of
    Standard Federal Bank National Association incorporated by
    reference to the annual report on
    Form 10-KSB
    filed March 31, 2005.10
.11

Unconditional Guaranty dated as of
    March 29, 2005 executed by Rockwell Transportation, Inc.
    for the benefit of Standard Federal Bank National Association
    incorporated by reference to the annual report on
    Form 10-KSB
    filed March 31, 2005.10
.12

Second Amendment of Industrial
    Lease Agreement between Rockwell Medical Technologies, Inc. and
    DCT DFW, LP dated August 17, 2005, incorporated by
    reference to Exhibit 99.1 on
    Form 8-K
    filed on August 19, 2005.10
.13

Amending Agreement made the
    16th day of January, 2006, by and between Dr. Ajay
    Gupta, Charak LLC and Rockwell Medical Technologies, Inc.
    incorporated by reference to the annual report on
    Form 10-KSB
    filed March 31, 2006.10
.14

Letter dated March 29, 2006
    from LaSalle Bank Midwest National Association to Rockwell
    Medical Technologies, Inc., incorporated by reference to
    Exhibit 99.1 to
    Form 8-K
    filed with the Securities and Exchange Commission on
    April 11, 2006.10
.15

Securities Purchase Agreement
    between Rockwell Medical Technologies, Inc. and Emerald Asset
    Advisors, LLC dated June 22, 2006 incorporated by reference
    to Exhibit 10.1 on
    Form 8-K
    filed with the Securities and Exchange Commission on
    June 23, 2006.10
.16

Registration Rights Agreement
    between Rockwell Medical Technologies, Inc. and Emerald Asset
    Advisors, LLC dated June 22, 2006 incorporated by reference
    to Exhibit 10.2 on
    Form 8-K
    filed with the Securities and Exchange Commission on
    June 23, 2006.10
.17

Letter dated March 23, 2007
    from LaSalle Bank Midwest National Association to Rockwell
    Medical Technologies, Inc.14
.1

Rockwell Medical Technologies,
    Inc. Code of Ethics incorporated by reference to the Definitive
    Proxy Statement for the 2004 Annual Meeting of Shareholders
    filed April 23, 2004.21
.1

List of Subsidiaries incorporated
    by reference to Exhibit 21.1 to the Companys
    Registration Statement on
    Form SB-2,
    File
    No. 333-3199123
.1

Consent of Plante &
    Moran, PLLC.31
.1

Certifications of Chief Executive
    Officer Pursuant to
    Rule 13a-14(a).31
.2

Certifications of Chief Financial
    Officer Pursuant to
    Rule 13a-14(a).32
.1

Certifications of the Chief
    Executive Officer and Chief Financial Officer, Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.     *
    
    Current management contracts or compensatory plans or
    arrangements.  Item 14.
    Principal
    Accountant Fees and Services   25




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SIGNATURES
      By:
    /s/  ROBERT
    L. CHIOINI         Signature

Title

Date/s/  ROBERT
    L. CHIOINIRobert
    L. Chioini

President, Chief Executive Officer
    and Director (Principal Executive Officer)

March 27, 2007/s/  THOMAS
    E. KLEMAThomas
    E. Klema

Vice President of Finance, Chief
    Financial Officer, Treasurer and Secretary (Principal Financial
    Officer and Principal Accounting Officer)

March 27, 2007/s/  KENNETH
    L. HOLTKenneth
    L. Holt

Director

March 27, 2007/s/  RONALD
    D. BOYDRonald
    D. Boyd

Director

March 27, 2007/s/  PATRICK
    J. BAGLEYPatrick
    J. Bagley

Director

March 27, 2007  26




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##### 



INDEX TO
    FINANCIAL STATEMENTS
  PageI. Consolidated Financial
    Statements for Rockwell Medical Technologies, Inc. and SubsidiaryReport of
    Independent Registered Accounting Firm for the years ended
    December 31, 2006 and 2005


F-1Consolidated
    Balance Sheets at December 31, 2006 and December 31,
    2005


F-2Consolidated Income
    Statement for the years ended December 31, 2006 and
    2005


F-3Consolidated
    Statement of Changes in Shareholders Equity for the years
    ended December 31, 2006 and 2005


F-4Consolidated
    Statements of Cash Flow for the years ended December 31,
    2006 and 2005


F-5Notes to the
    Consolidated Financial Statements


F-6 - F-16




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##### Table of Contents



PLANTE &
    MORAN, PLLC LETTERHEAD
 REPORT OF
    INDEPENDENT REGISTERED ACCOUNTING FIRM           
    F-1




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ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  CONSOLIDATED BALANCE SHEETS
  As of December 31, 2006 and 2005
 (Whole Dollars)
  December 31,


December 31,2006


2005ASSETSCash and Cash Equivalents

$
2,662,873


$
299,031Accounts Receivable, net of a
    reserve of $72,500 in 2006 and $70,000 in 2005


3,474,402



2,836,072Inventory


2,660,098



2,051,819Other Current Assets


261,473



193,158Total Current Assets


9,058,846



5,380,080Property and Equipment, net


2,587,771



2,430,222Intangible Assets


457,846



394,819Goodwill


920,745



920,745Other Non-current Assets


127,625



134,794Total Assets

$
13,152,833


$
9,260,660LIABILITIES AND
    SHAREHOLDERS EQUITYShort Term Borrowings

$



$
1,800,000Notes Payable &
    Capitalized Lease Obligations


369,551



522,439Accounts Payable


2,920,258



1,795,393Accrued Liabilities


1,114,592



530,749Customer Deposits


48,274



33,558Total Current Liabilities


4,452,675



4,682,139Long Term
    Notes Payable & Capitalized Lease Obligations


326,045



733,723Shareholders Equity:Common Shares, no par value,
    11,500,349 and 8,886,948 shares issued and outstanding


23,147,709



12,628,539Common Share Purchase Warrants,
    -0- and 3,591,385 shares issued and outstanding






1,414,876Accumulated Deficit


(14,773,596
)


(10,198,617
)Total Shareholders Equity


8,374,113



3,844,798Total Liabilities And
    Shareholders Equity

$
13,152,833


$
9,260,660    F-2




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  CONSOLIDATED INCOME STATEMENTS
  For the Years Ended December 31, 2006 and 2005
 (Whole Dollars)
  2006


2005Sales

$
28,638,859


$
27,694,955Cost of Sales


25,837,294



24,689,912Gross Profit


2,801,565



3,005,043Selling, General and Administrative


2,661,419



2,520,670Research and Product Development


4,777,976



346,938Operating Income (Loss)


(4,637,830
)


137,435Other Income






137,468Interest (Income) Expense, net


(62,851
)


198,095Income (Loss) Before Income Taxes


(4,574,979
)


76,808Income Tax Expense






Net Income (Loss)

$
(4,574,979
)

$
76,808Basic And Diluted Earnings (Loss)
    Per Share

$
(.41
)

$
.01    F-3




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  CONSOLIDATED STATEMENTS OF CHANGES IN
    SHAREHOLDERS EQUITY
  For The Years Ended December 31, 2006 and 2005
 (Whole Dollars)
  TotalCommon Shares


Purchase Warrants


Accumulated


ShareholdersShares


Amount


Warrants


Amount


Deficit


EquityBalance as of December 31, 2004


8,556,531


$
11,870,909



3,761,071


$
320,150


$
(8,768,740
)

$
3,422,319Issuance of Common Shares


167,881



336,849















336,849Exercise of Purchase Warrants


162,536



420,781



(162,536
)


(80,630
)






340,151Expiration of Warrants










(7,150
)










Warrant Exchange














1,175,356



(1,506,685
)


(331,329
)Net Income


















76,808



76,808Balance as of December 31, 2005


8,886,948


$
12,628,539



3,591,385


$
1,414,876


$
(10,198,617
)

$
3,844,798Issuance of Common Shares


245,995



836,601















836,601Exercise of Purchase Warrants


2,367,406



9,523,210



(2,367,406
)


(1,255,517
)






8,267,693Expiration of Warrants






159,359



(1,223,979
)


(159,359
)






Net Loss


















(4,574,979
)


(4,574,979
)Balance as of December 31, 2006


11,500,349


$
23,147,709



-0-


$
-0-


$
(14,773,596
)

$
8,374,113    F-4




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  For The Years Ended December 31, 2006 and 2005
 (Whole Dollars)
  2006


2005Cash Flows From Operating
    Activities:Net Income (Loss)

$
(4,574,979
)

$
76,808Adjustments To Reconcile Net
    Income To Net Cash Used InOperating Activities:Depreciation and Amortization


756,868



716,312Gain on Asset Disposal


(4,539
)


Changes in Assets and Liabilities:(Increase) in Accounts Receivable


(638,330
)


(533,979
)(Increase) in Inventory


(608,279
)


(399,362
)(Increase) in Other Assets


(61,146
)


(95,725
)Increase (Decrease) in Accounts
    Payable


1,124,865



(329,286
)Increase (Decrease) in Other
    Liabilities


598,559



71,715Changes in Assets and Liabilities


415,669



(1,286,637
)Cash Provided (Used) By Operating
    Activities


(3,406,981
)


(493,517
)Cash Flows From Investing
    Activities:Purchase of Equipment


(907,554
)


(576,450
)(Increase) Decrease in Restricted
    Cash Equivalents






8,662Purchase of Intangible Assets


(105,730
)


(59,924
)Cash Provided (Used ) By Investing
    Activities


(1,013,284
)


(627,712
)Cash Flows From Financing
    Activities:Proceeds From Borrowings on Line
    of Credit






5,937,395Payments on Line of Credit


(1,800,000
)


(4,590,077
)Issuance of Common Shares and
    Purchase Warrants


9,104,294



345,671Payments on Notes Payable


(520,187
)


(438,924
)Cash Provided (Used) By Financing
    Activities


6,784,107



1,254,065Increase In Cash


2,363,842



132,836Cash At Beginning Of Period


299,031



166,195Cash At End Of Period

$
2,662,873


$
299,031     2006

2005Interest Paid

$
126,316


$
198,192Non-Cash Investing and Financing
    Activity  Equipment Acquired Under Capital Lease
    Obligations

$
133,120


$
486,806    F-5




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ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS
  1.
    Description
    of Business      2.
    Summary
    of Significant Accounting Policies  Basis
    of Presentation
      Revenue
    Recognition
        Shipping
    and Handling Revenue and Costs
      Cash
    and Cash Equivalents
   F-6




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Accounts
    Receivable
    Inventory
  first-in
  Property
    and Equipment
    Licensing
    Fees
    Goodwill,
    Intangible Assets and Long Lived Assets
        Income
    Taxes
   F-7




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Research
    and Product Development
        Other
    Income
    Stock
    Options
      2006


2005As reported net income (loss)
    available to common shareholders

$
(4,574,979
)

$
76,808Less: Stock based compensation
    expense determined under the fair market value method, net of tax


-0-



2,427,257Pro forma net income (loss)

$
(4,574,979
)

$
(2,350,449
)As reported basic earnings per
    share and diluted earnings per share

$
(.41
)

$
.01Pro forma earnings (loss) per
    share and diluted earnings (loss) per share

$
(.41
)

$
(.27
)  F-8




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Net
    Earnings per Share
    2006


2005Basic Weighted Average
    Shares Outstanding


11,189,001



8,674,651Effect of Dilutive Securities


-0-



682,239Diluted Weighted Average
    Shares Outstanding


11,189,001



9,356,990         Estimates
    in Preparation of Financial Statements
    3.
    Managements
    Plan of Operation         F-9




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      sub-licensing
  4.
    Significant
    Market Segments    5.
    Inventory    2006


2005Raw Materials

$
717,876


$
509,248Finished Goods


1,942,222



1,542,571Total

$
2,660,098


$
2,051,819  F-10




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  6.
    Property
    and Equipment    2006


2005Leasehold Improvements

$
446,150


$
447,207Machinery and Equipment


3,891,890



3,326,552Office Equipment and Furniture


479,427



308,992Laboratory Equipment


304,992



298,510Transportation Equipment


637,634



904,8625,760,093



5,286,123Accumulated Depreciation


(3,172,322
)


(2,855,901
)Net Property and Equipment

$
2,587,771


$
2,430,222       7.
    Goodwill
    and Intangible Assets        8.
    Line of
    Credit   F-11




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   9.
    Notes Payable &
    Capital Lease Obligations  Notes Payable
      Year ending December 31, 2007

$
122,206Total Notes Payable

$
122,206   Capital
    Lease Obligations
      Year ending December 31, 2007

$
299,286Year ending December 31, 2008


199,488Year ending December 31, 2009


155,615Year ending December 31, 2010


8,819Total minimum payments on capital
    lease obligations


663,208Interest


(89,817
)Present value of minimum lease
    payments


573,391Current portion of capital lease
    obligations


(247,345
)Long-term capital lease obligations

$
326,046   10.
    Operating
    Leases     F-12




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     Year ending December 31, 2007


1,295,289Year ending December 31, 2008


835,250Year ending December 31, 2009


655,964Year ending December 31, 2010


477,109Year ending December 31, 2011


243,600Thereafter


171,450Total

$
3,678,662   11.
    Income
    Taxes      2006


2005Tax Expense Computed at 34% of
    Pretax Income

$
(1,555,000
)

$
26,000Effect of Permanent Differences
    Principally Related to Non-deductible expenses






Effect of Change in Valuation
    Allowance


(1,555,000
)


(26,000
)Total Income Tax Benefit

$
-0-


$
-0-     2006


2005Total Deferred Tax Assets

$
4,244,000


$
2,908,000Total Deferred Tax Liabilities


(173,000
)


(257,600
)Valuation Allowance Recognized for
    Deferred Tax Assets


(4,071,000
)


(2,650,400
)Net Deferred Tax Asset

$
-0-


$
-0-      F-13




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   12.
    Capital
    Stock            Common
    Shares
    Warrants
       F-14




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
           13.
    Stock
    Options  Employee
    Stock Options
        WeightedAverage


AggregateExercise


IntrinsicShares


Price


ValueOutstanding at December 31,
    2004


2,707,717



2.12Granted


853,000



4.46Exercised


(167,881
)


2.01


$
184,257Cancelled


(33,501
)


2.42Outstanding at December 31,
    2005


3,359,335



2.12


$
6,087,407Granted


-0-Exercised


(134,100
)


3.37


$
363,124Cancelled


(6,000
)


4.17Outstanding at December 31,
    2006


3,219,235



2.68


$
14,368,196  F-15




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Options ExercisableOptions Outstanding





WeightedRemaining


Weighted


Number


AverageRange of

Number of


Contractual


Exercise


of


ExerciseExercise Prices

Options


Life


Price


Options


Price$.55 to $1.50


653,100



.6-6.0 yrs.


$
.77



653,100


$
.77$1.81 to $2.79


1,348,635



1.5-8.5 yrs.


$
2.26



1,348,635


$
2.26$3.00 to $4.55


1,217,500



1.6-10.0 yrs.


$
4.18



1,217,500


$
4.18Total


3,219,235



6.5 yrs.


$
2.68



3,219,235


$
2.68       14.
    Related
    Party Transactions    15.
    Supplemental
    Cash Flow Information      16.
    Recent
    Accounting Pronouncements       F-16