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UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
   Form 10-K
  (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2007ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to  Commission File Number
    000-23661
  ROCKWELL MEDICAL TECHNOLOGIES,
    INC.
 (Exact name of registrant as
    specified 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(Address of principal
    executive offices)

48393(Zip Code)   (248) 960-9009 (Registrants
    telephone number, including area code)
  Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class:

Name of Each Exchange on Which Registered:Common Stock, no par value

Nasdaq Global Market   Securities
    registered pursuant to Section 12(g) of the Act:
    (None)
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer o

Non-accelerated
    filer o
    (Do not check if a smaller reporting company)

Smaller reporting
    company þ   Rule 12b-2 o þ
      Documents
    Incorporated by Reference
  Form 10-K.




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PART I
    Forward
    Looking Statements
      Item 1.
    Description
    of Business.  General
     1




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How
    Hemodialysis Works
      Dialysis
    Industry Trends
  African-American
    Our
    Strategy
    
    increasing our revenues through new innovative products, such as
    our
    Dri-Sate®
    Dry Acid Concentrate Mixing System and
    SteriLyte®
    Liquid Bicarbonate Concentrate,
    gaining FDA approval to market innovative products such as iron
    supplemented dialysate, 2




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
    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
    Renal
    Pure Liquid Acid Concentrate
    Dri-Sate®
    Dry Acid Concentrate & Mixing System
    on-site.
  RenalPure
    Powder Bicarbonate Concentrate
    SteriLyte®
    Liquid Bicarbonate Concentrate
   3




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Ancillary
    Products
    Iron
    Supplemented Dialysate
             4




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Distribution
    and Delivery Operations
    and/or
    Sales and
    Marketing
      Competition
  Dialysis
    Concentrate and Supplies Competition
       5




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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
    FDAd-approved
       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-K Form 10-KSB
  Item 1A.
    Risk
    Factors  Investing in our common stock involves a high degree of risk.
    You should carefully consider the risks and uncertainties
    described below before purchasing our common stock. The risks
    and uncertainties described below are not the only ones facing
    our company. Additional risks and uncertainties may also impair
    our business operations. If any of the following risks actually
    occur, our business, financial condition or results of
    operations would likely suffer. In that case, the trading price
    of our common stock could fall, and you may lose all or part of
    the money you paid to buy our common stock.
  RISKS
    RELATED TO OUR BUSINESS
  The
    dialysis provider market is highly concentrated in national and
    regional dialysis chains that account for the majority of our
    domestic revenue. Our business is substantially dependent on one
    of our customers that accounts for a substantial portion of our
    sales. The loss of this customer would have a material adverse
    affect on our results of operations and cash flow.
    We
    operate in a very competitive market against substantially
    larger competitors with greater resources.
   12




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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 be successful in improving our gross profit margins and our
    business may remain unprofitable.
         13




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Orders
    from our international distributors may not result in recurring
    revenue.
    We depend
    on key personnel.
    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.
   14




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We may
    not have sufficient cash to fund SFP development in future
    years.
    We may
    not have sufficient products liability insurance.
    Our Board
    of Directors is subject to potential deadlock.
    RISKS
    RELATED TO OUR COMMON STOCK
  Shares
    eligible for future sale may affect the market price of our
    common shares.
      The
    market price of our securities may be volatile.
   15




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Voting
    control and anti-takeover provisions reduce the likelihood that
    you will receive a takeover premium.
      We do not
    anticipate paying dividends in the foreseeable future.
    Item 1B.
    Unresolved
    Staff Comments.    Item 2.
    Properties.     16




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Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders.    PART II
  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities.      Sale PriceQuarter Ended

High


LowMarch 31, 2006


9.39



3.91June 30, 2006


8.60



5.94September 30, 2006


8.02



6.31December 31, 2006


7.74



6.86March 31, 2007


8.10



5.46June 30, 2007


7.20



5.07September 30, 2007


6.30



4.33December 31, 2007


7.99



5.54     Dividends
    Securities
    Authorized for Issuance Under Equity Compensation
    Plans
  Form 10-K
 17




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Item 6.
    Selected
    Financial Data  Form 10-K.
  For the Year Ended December 31,2007


2006


2005


2004


2003Net sales

$
43,045,304


$
28,638,859


$
27,694,955


$
17,944,710


$
14,970,144Cost of sales


40,015,466



25,837,294



24,689,912



15,139,215



12,414,462Gross profit


3,029,838



2,801,565



3,005,043



2,805,495



2,555,682Income from continuing operations before interest expense and
    income taxes


(3,608,353
)


(4,637,830
)


274,903



409,180



187,909Interest expense, net


110,542



(62,851
)


198,095



197,658



183,056Income from continuing operations before income taxes


(3,718,895
)


(4,574,979
)


76,808



211,522



4,853Income taxes


















Net income

$
(3,718,895
)

$
(4,574,979
)

$
76,808


$
211,522


$
4,853Earnings per common share:Basic

$
(0.32
)

$
(0.41
)

$
0.01


$
0.02


$
0.00Diluted

$
(0.32
)

$
(0.41
)

$
0.01


$
0.02


$
0.00Weighted average number of common and common equivalent shares:Basic


11,771,381



11,189,001



8,674,651



8,546,302



8,495,134Diluted


11,771,381



11,189,001



9,356,990



9,305,123



9,229,754   As of December 31,2007


2006


2005


2004


2003Total assets

$
22,803,134


$
13,152,833


$
9,260,660


$
7,700,552


$
7,044,786Current assets


18,645,945



9,058,846



5,380,080



4,241,037



3,739,127Current liabilities


4,637,271



4,452,675



4,682,139



3,459,555



2,946,448Working capital


14,008,674



4,606,171



697,941



781,482



792,679Long-term debt


204,837



326,045



733,723



818,678



926,230Stockholders equity(1)


17,961,026



8,374,113



3,844,798



3,422,319



3,172,108Book value per outstanding common share

$
1.30


$
0.73


$
0.43


$
0.40


$
0.37Common shares outstanding


13,815,186



11,500,349



8,886,948



8,556,531



8,519,405     (1)
    
    There were no cash dividends paid during the periods presented. 18




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Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operation.  Overview
    and Recent Developments
        start-up start-up start-up
       19




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Results
    of Operations
  For
    the year ended December 31, 2007 compared to the year ended
    December 31, 2006
  Sales
        Gross
    Profit
      Selling,
    General and Administrative Expenses
   20




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Research
    and Development
      Interest
    Expense, Net
    Income
    Tax Expense
    Critical
    Accounting Estimates and Judgments
      Revenue
    recognition
   21




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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
       22




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Item 8.
    Financial
    Statements    Item 9.
    Changes
    In and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A(T).
    Controls
    and Procedures  Evaluation
    of Disclosure Controls and Procedures
     23




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Form 10-K
  Managements
    Report on Internal Control Over Financial Reporting
  Rule 13a-15(f).
        This Annual Report on
    Form 10-K
    does not include an attestation report of the Companys
    registered public accounting firm regarding internal control
    over financial reporting. Managements report was not
    subject to attestation by the Companys registered public
    accounting firm pursuant to temporary rules of the Securities
    and Exchange Commission that permit the Company to provide only
    managements report in this Annual Report on
    Form 10-K.
 24




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Changes
    in Internal Controls
    Item 9B.
    Other
    Information.  Approval
    of Discretionary Bonuses
  .
  Name

Title

2007 BonusRobert L. Chioini

President, CEO and Chairman of the Board

$
40,000Thomas E. Klema

Chief Financial
    Officer, Secretary And Treasurer

$
25,000   Approval
    of Executive Salary Adjustments
    Name

Title

2007 Salary


2008 SalaryRobert L. Chioini

President, CEO and Chairman of the Board

$
275,000


$
465,000Thomas E. Klema

Chief Financial Officer, Secretary And Treasurer

$
160,000


$
275,000   PART III
  Item 10.
    Directors,
    Executive Officers and Corporate Governance.    Item 11.
    Executive
    Compensation.    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters.   25




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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


3,807,035


$
3.42



245,000Equity compensation plans
    not approved by security
    holders










Total


3,807,035


$
3.42



245,000   Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence.    Item 14.
    Principal
    Accountant Fees and Services.    Item 15.
    Exhibits.  (a)
    Exhibits  000-23-661.
  3
(i).1

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

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

Amended and Restated Bylaws of the Company, filed as an exhibit
    to the Companys Current Report on
    Form 8-K
    on December 20, 2007 and incorporated herein by reference.4
.1

Form of Warrant, filed as an exhibit to the Companys
    Current Report on
    Form 8-K
    on December 4, 2007 and incorporated herein by reference.4
.2

RJ Aubrey Warrant Agreement, dated November 28, 2007, filed
    as an exhibit to the Companys Current Report on
    Form 8-K
    on December 4, 2007 and incorporated herein by reference.*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. 26




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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 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
.5

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
.6

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
.7

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, 2005.10
.8

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
.9

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
.10

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
.11

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
.12

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
.13

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
.14

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
.15

Letter dated March 23, 2007 from LaSalle Bank Midwest
    National Association to Rockwell Medical Technologies, Inc.,
    incorporated by reference to the Annual Report on
    Form 10-KSB
    filed on March 27, 2007.*10
.16

Rockwell Medical Technologies, Inc. 2007 Long Term Incentive
    Plan, incorporated by reference to the Proxy Statement for the
    Annual Meeting of Shareholders filed on April 18, 2007.10
.17

Consulting Agreement, dated as of October 3, 2007, filed as
    an exhibit to the Companys Current Report on
    Form 8-K
    on October 9, 2007 and incorporated herein by reference.10
.18

Common Stock Purchase Agreement dated November 28, 2007,
    between the Company and certain Purchasers, filed as an exhibit
    to the Companys Current Report on
    Form 8-K
    on December 4, 2007 and incorporated herein by reference.10
.19

Registration Rights Agreement, dated November 28, 2007,
    between the Company and certain Purchasers, filed as an exhibit
    to the Companys Current Report on
    Form 8-K
    on December 4, 2007 and incorporated herein by reference. 27




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*10
.20

Form of Nonqualified Stock Option Agreement (Director Version),
    filed as an exhibit to the Companys Current Report on
    Form 8-K
    on December 20, 2007 and incorporated herein by reference.*10
.21

Form of Nonqualified Stock Option Agreement (Employee Version),
    filed as an exhibit to the Companys Current Report on
    Form 8-K
    on December 20, 2007 and incorporated herein by reference.10
.22

Lease Agreement dated March 19, 2008 between the Company
    and EZE Management Properties Limited Partners.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. 333-31991.23
.1

Consent of Plante & Moran, PLLC.31
.1

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

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

Certification 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. 28




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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 21, 2008/s/  THOMAS
    E. KLEMAThomas
    E. Klema

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

March 21, 2008/s/  KENNETH
    L. HOLTKenneth
    L. Holt

Director

March 21, 2008/s/  RONALD
    D. BOYDRonald
    D. Boyd

Director

March 21, 2008/s/  PATRICK
    J. BAGLEYPatrick
    J. Bagley

Director

March 21, 2008  29




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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, 2007 and 2006


F-1Consolidated Balance Sheets at December 31,
    2007 and December 31, 2006


F-2Consolidated Income Statement for the years ended
    December 31, 2007 and 2006


F-3Consolidated Statement of Changes in
    Shareholders Equity for the years ended December 31,
    2007 and 2006


F-4Consolidated Statements of Cash Flow for the
    years ended December 31, 2007 and 2006


F-5Notes to the Consolidated Financial Statements


F-6 - F-17Lease AgreementConsent of Plante & Moran, PLLCCertification of Chief Executive Officer Pursuant to Rule 13a-14(a)Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to Section 906




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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 SUBSIDIARYCONSOLIDATED BALANCE SHEETS 
    As of December 31, 2007 and 2006
    (Whole Dollars)
  December 31,


December 31,2007


2006ASSETSCash and Cash Equivalents

$
11,097,092


$
2,662,873Accounts Receivable, net of a reserve of $69,000 in 2007 and
    $72,500 in 2006


4,687,229



3,474,402Inventory


2,559,051



2,660,098Other Current Assets


302,573



261,473Total Current Assets


18,645,945



9,058,846Property and Equipment, net


2,840,331



2,587,771Intangible Assets


270,446



457,846Goodwill


920,745



920,745Other Non-current Assets


125,667



127,625Total Assets

$
22,803,134


$
13,152,833LIABILITIES AND SHAREHOLDERS EQUITYNotes Payable & Capitalized Lease Obligations

$
194,239


$
369,551Accounts Payable


2,982,899



2,920,258Accrued Liabilities


1,122,737



1,114,592Customer Deposits


337,396



48,274Total Current Liabilities


4,637,271



4,452,675Long Term Notes Payable & Capitalized Lease Obligations


204,837



326,045Shareholders Equity:Common Shares, no par value, 13,815,186 and
    11,500,349 shares issued and outstanding


33,415,106



23,147,709Common Share Purchase Warrants, 1,204,169 and -0- shares issued
    and outstanding


3,038,411



Accumulated Deficit


(18,492,491
)


(14,773,596
)Total Shareholders Equity


17,961,026



8,374,113Total Liabilities And Shareholders Equity

$
22,803,134


$
13,152,833    F-2




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##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED INCOME STATEMENTS 
    For the Years Ended December 31, 2007 and 2006
    (Whole Dollars)
  2007


2006Sales

$
43,045,304


$
28,638,859Cost of Sales


40,015,466



25,837,294Gross Profit


3,029,838



2,801,565Selling, General and Administrative


3,374,458



2,661,419Research and Product Development


3,263,733



4,777,976Operating Income (Loss)


(3,608,353
)


(4,637,830
)Interest (Income) Expense, net


110,542



(62,851
)Income (Loss) Before Income Taxes


(3,718,895
)


(4,574,979
)Income Tax Expense






Net Income (Loss)

$
(3,718,895
)

$
(4,574,979
)Basic And Diluted Earnings (Loss) Per Share

$
(.32
)

$
(.41
)    F-3




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ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN
    SHAREHOLDERS EQUITY 
    For The Years Ended December 31, 2007 and 2006
    (Whole Dollars)
  TotalCommon Shares


Purchase Warrants


Accumulated


ShareholdersShares


Amount


Warrants


Amount


Deficit


EquityBalance 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
)

$
8,374,113Issuance of Common Shares


2,314,837



10,209,459















10,209,459Issuance of Purchase Warrants










1,204,169



3,038,411







3,038,411Stock Option Based Expense






57,938















57,938Net Loss


















(3,718,895
)


(3,718,895
)Balance as of December 31, 2007


13,815,186


$
33,415,106



1,204,169


$
3,038,411


$
(18,492,491
)

$
17,961,026    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, 2007 and 2006
    (Whole Dollars)
  2007


2006Cash Flows From Operating Activities:Net (Loss)

$
(3,718,895
)

$
(4,574,979
)Adjustments To Reconcile Net Loss To Net Cash Used In Operating
    Activities:Depreciation and Amortization


949,739



756,868Warrants issued for Services


85,911



Stock Option Compensation


57,938



Loss (Gain) on Asset Disposal


17,710



(4,539
)Changes in Assets and Liabilities:(Increase) in Accounts Receivable


(1,212,827
)


(638,330
)(Increase) Decrease in Inventory


101,047



(608,279
)(Increase) in Other Assets


(39,142
)


( 61,146
)Increase (Decrease) in Accounts Payable


62,641



1,124,865Increase in Other Liabilities


297,267



598,559Changes in Assets and Liabilities


(791,014
)


415,669Cash (Used) In Operating Activities


(3,398,611
)


(3,406,981
)Cash Flows From Investing Activities:Purchase of Equipment


(924,608
)


(907,554
)(Increase) Decrease in Restricted Cash Equivalents






Purchase of Intangible Assets


(8,189
)


(105,730
)Cash (Used ) In Investing Activities


(932,797
)


(1,013,284
)Cash Flows From Financing Activities:Proceeds From Borrowings on Line of Credit


1,800,000



Payments on Line of Credit


( 1,800,000
)


( 1,800,000
)Issuance of Common Shares and Purchase Warrants


13,161,959



9,104,294Payments on Notes Payable


(396,332
)


(520,187
)Cash Provided By Financing Activities


12,765,627



6,784,107Increase In Cash


8,434,219



2,363,842Cash At Beginning Of Period


2,662,873



299,031Cash At End Of Period

$
11,097,092


$
2,662,873Supplemental Cash Flow disclosure:   2007


2006Interest Paid

$
159,444


$
126,316Non-Cash Investing and Financing Activity  Equipment
    Acquired Under Capital Lease Obligations

$
99,812


$
133,120    F-5




---



##### Table of Contents



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




---



##### 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




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Research
    and Product Development
      Stock
    Options
      Net
    Earnings per Share
    2007


2006Basic Weighted Average Shares Outstanding


11,771,381



11,189,001Effect of Dilutive Securities


-0-



-0-Diluted Weighted Average Shares Outstanding


11,771,381



11,189,001    F-8




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Estimates
    in Preparation of Financial Statements
    3.
    Significant
    Market Segments    4.
    Inventory    2007


2006Raw Materials

$
1,096,191


$
717,876Finished Goods


1,462,860



1,942,222Total

$
2,559,051


$
2,660,098   5.
    Property
    and Equipment    2007


2006Leasehold Improvements

$
229,941


$
446,150Machinery and Equipment


4,333,693



3,891,890Office Equipment and Furniture


519,278



479,427Laboratory Equipment


339,380



304,992Transportation Equipment


389,477



637,6345,811,770



5,760,093Accumulated Depreciation


(2,971,439
)


(3,172,322
)Net Property and Equipment

$
2,840,331


$
2,587,771  F-9




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      6.
    Goodwill
    and Intangible Assets        7.
    Line of
    Credit    8.
    Notes Payable &
    Capital Lease Obligations  Notes
    Payable
    Capital
    Lease Obligations
   F-10




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Year ending December 31, 2008

$
227,017Year ending December 31, 2009


190,277Year ending December 31, 2010


29,763Year ending December 31, 2011


1,313Total minimum payments on capital lease obligations


448,371Interest


(49,295
)Present value of minimum lease payments


399,076Current portion of capital lease obligations


(194,239
)Long-term capital lease obligations

$
204,837   9.
    Operating
    Leases        Year ending December 31, 2008

$
1,437,709Year ending December 31, 2009


1,269,248Year ending December 31, 2010


1,073,376Year ending December 31, 2011


587,552Year ending December 31, 2012


462,112Thereafter


26,973Total

$
4,856,970   10.
    Income
    Taxes   F-11




---



##### Table of Contents



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


2006Tax Expense Computed at 34% of Pretax Income

$
(1,264,000
)

$
(1,555,000
)Effect of Permanent Differences Principally Related to
    Non-deductible expenses






Effect of Change in Valuation Allowance


(1,264,000
)


(1,555,000
)Total Income Tax Benefit

$
-0-


$
-0-     2007


2006Total Deferred Tax Assets

$
6,092,000


$
4,244,000Total Deferred Tax Liabilities


(379,000
)


(173,000
)Valuation Allowance Recognized for Deferred Tax Assets


(5,713,000
)


(4,071,000
)Net Deferred Tax Asset

$
-0-


$
-0-         11.
    Capital
    Stock     F-12




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
            Common
    Shares
    Warrants
           F-13




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          12.
    Long Term
    Incentive Plan & Stock Options  Long
    Term Incentive Plan & Stock Options
         F-14




---



##### Table of Contents



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


AggregateExercise


IntrinsicShares


Price


ValueOutstanding 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


$
14,368,196Granted


785,000



6.43Exercised


(156,500
)


3.03


$
342,853Cancelled


(40,700
)


5.26Outstanding at December 31, 2007


3,807,035



3.42


$
15,293,591   Options ExercisableOptions Outstanding





WeightedRemaining


Weighted


Number


AverageRange of

Number of


Contractual


Exercise


of


ExerciseExercise Prices

Options


Life


Price


Options


Price$.55 to $1.50


649,500



1.0-5.0 yrs.


$
.77



649,500


$
.77$1.81 to $2.79


1,320,035



1.1-7.5 yrs.


$
2.26



1,320,035


$
2.26$3.00 to $4.55


1,082,500



5.7-8.0 yrs.


$
4.29



1,082,500


$
4.29$5.87 to $6.50


755,000



9.8-10.0 yrs.


$
6.45



-0-Total


3,807,035



6.5 yrs.


$
3.42



3,052,035


$
2.66   WeightedAverageNumber of


Fair MarketUnvested


Value atOptions


Grant DateAs of December 31, 2006


Granted


785,000


$
4.37Forfeited


(30,000
)Vested


As of December 31, 2007


755,000   Share-Based Payment
 F-15




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        13.
    Contingencies    14.
    Supplemental
    Cash Flow Information      15.
    Recent
    Accounting Pronouncements    instrument-by-instrument
 F-16




---



##### Table of Contents



ROCKWELL
    MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     F-17