##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 Quarterly Report Under section 13 or 15(d) of the Securities Exchange Act of 1934
 For the Quarterly Period Ended September 30, 2007
 Commission File No. 000-20989
 
 UROPLASTY, INC.
  Minnesota, U.S.A.
(State or other jurisdiction of 
incorporation or organization)
    
    41-1719250
(I.R.S. Employer
Identification No.)
 5420 Feltl Road
Minnetonka, Minnesota, 55343
 (912) 426-6140
  þ o
  o o þ
 o þ




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TABLE OF CONTENTS  PART I. FINANCIAL INFORMATIONITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. CONTROLS AND PROCEDURESPART II. OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 6. EXHIBITSSIGNATURESCertificationCertification    Table of Contents  
  ITEM 1. FINANCIAL STATEMENTS
   September 30, 2007
    
    
    March 31, 2007(unaudited)AssetsCurrent assets:Cash and cash equivalents
    
    $
    3,309,747
    
    
    $
    3,763,702Short-term investments
    
    
    2,400,000
    
    
    
    3,000,000Accounts receivable, net
    
    
    1,796,574
    
    
    
    1,240,141Income tax receivable
    
    
    19,356
    
    
    
    113,304Inventories
    
    
    883,619
    
    
    
    823,601Other
    
    
    310,272
    
    
    
    272,035Total current assets
    
    
    8,719,568
    
    
    
    9,212,783Property, plant, and equipment, net
    
    
    1,510,722
    
    
    
    1,431,749Intangible assets, net
    
    
    4,633,676
    
    
    
    308,093Deferred tax assets
    
    
    97,838
    
    
    
    93,819Total assets
    
    $
    14,961,804
    
    
    $
    11,046,444
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##### Table of Contents



September 30, 2007
    
    
    March 31, 2007(unaudited)Liabilities and Shareholders EquityCurrent liabilities:Current maturities  long-term debt
    
    $
    115,847
    
    
    $
    78,431Deferred rent  current
    
    
    35,000
    
    
    
    35,000Accounts payable
    
    
    744,433
    
    
    
    544,507Accrued liabilities
    
    
    1,294,330
    
    
    
    1,347,670Total current liabilities
    
    
    2,189,610
    
    
    
    2,005,608Long-term debt  less current maturities
    
    
    413,064
    
    
    
    427,382Deferred rent  less current portion
    
    
    197,680
    
    
    
    214,381Accrued pension liability
    
    
    318,564
    
    
    
    596,026Total liabilities
    
    
    3,118,918
    
    
    
    3,243,397Shareholders equity:Common stock $.01 par value; 40,000,000
shares authorized, 13,450,140 and
11,614,330 shares issued and
outstanding at September 30 and
March 31, 2007, respectively
    
    
    134,501
    
    
    
    116,143Additional paid-in capital
    
    
    30,076,261
    
    
    
    23,996,818Accumulated deficit
    
    
    (18,236,317
    )
    
    
    (16,010,990
    )Accumulated other comprehensive loss
    
    
    (131,559
    )
    
    
    (298,924
    )Total shareholders equity
    
    
    11,842,886
    
    
    
    7,803,047Total liabilities and shareholders equity
    
    $
    14,961,804
    
    
    $
    11,046,444
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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    3,039,543
    
    
    $
    1,760,771
    
    
    $
    5,988,217
    
    
    $
    3,524,980Cost of goods sold
    
    
    669,041
    
    
    
    452,857
    
    
    
    1,263,253
    
    
    
    1,008,372Gross profit
    
    
    2,370,502
    
    
    
    1,307,914
    
    
    
    4,724,964
    
    
    
    2,516,608Operating expensesGeneral and administrative
    
    
    1,147,432
    
    
    
    800,715
    
    
    
    1,955,806
    
    
    
    1,658,287Research and development
    
    
    426,997
    
    
    
    658,409
    
    
    
    933,122
    
    
    
    1,333,363Selling and marketing
    
    
    1,974,583
    
    
    
    1,303,696
    
    
    
    3,607,372
    
    
    
    2,536,283Amortization of intangibles
    
    
    206,482
    
    
    
    26,575
    
    
    
    423,003
    
    
    
    53,1123,755,494
    
    
    
    2,789,395
    
    
    
    6,919,303
    
    
    
    5,581,045Operating loss
    
    
    (1,384,992
    )
    
    
    (1,481,481
    )
    
    
    (2,194,339
    )
    
    
    (3,064,437
    )Other income (expense)Interest income
    
    
    65,239
    
    
    
    18,308
    
    
    
    141,622
    
    
    
    37,815Interest expense
    
    
    (9,279
    )
    
    
    (10,483
    )
    
    
    (20,644
    )
    
    
    (16,465
    )Warrant expense
    
    
    
    
    
    
    (700,412
    )
    
    
    
    
    
    
    (372,680
    )Foreign currency exchange gain (loss)
    
    
    (13,877
    )
    
    
    3,553
    
    
    
    (15,906
    )
    
    
    29,964Other, net
    
    
    
    
    
    
    (1,216
    )
    
    
    1,880
    
    
    
    3,58542,083
    
    
    
    (690,250
    )
    
    
    106,952
    
    
    
    (317,781
    )Loss before income taxes
    
    
    (1,342,909
    )
    
    
    (2,171,731
    )
    
    
    (2,087,387
    )
    
    
    (3,382,218
    )Income tax expense (benefit)
    
    
    41,783
    
    
    
    (12,841
    )
    
    
    137,940
    
    
    
    17,911Net loss
    
    $
    (1,384,692
    )
    
    $
    (2,158,890
    )
    
    $
    (2,225,327
    )
    
    $
    (3,400,129
    )Basic and diluted loss per common share
    
    $
    (0.10
    )
    
    $
    (0.28
    )
    
    $
    (0.17
    )
    
    $
    (0.46
    )Weighted average common shares
outstanding:Basic and diluted
    
    
    13,342,284
    
    
    
    7,784,118
    
    
    
    13,162,862
    
    
    
    7,376,900
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AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    TotalCommon Stock
    
    
    Paid-in
    
    
    Accumulated
    
    
    Comprehensive
    
    
    ShareholdersShares
    
    
    Amount
    
    
    Capital
    
    
    Deficit
    
    
    Loss
    
    
    EquityBalance (deficit)
at March 31, 2007
    
    
    11,614,330
    
    
    $
    116,143
    
    
    $
    23,996,818
    
    
    $
    (16,010,990
    )
    
    $
    (298,924
    )
    
    $
    7,803,047Issuance of common
stock in connection
with the purchase
of intellectual
property
    
    
    1,417,144
    
    
    
    14,171
    
    
    
    4,644,690
    
    
    
    
    
    
    
    
    
    
    
    4,658,861Registration costs
private placement
    
    
    
    
    
    
    
    
    
    
    (17,000
    )
    
    
    
    
    
    
    
    
    
    
    (17,000
    )Proceeds from
exercise of
warrants
    
    
    50,000
    
    
    
    500
    
    
    
    149,500
    
    
    
    
    
    
    
    
    
    
    
    150,000Proceeds from
exercise of stock
options
    
    
    368,666
    
    
    
    3,687
    
    
    
    631,611
    
    
    
    
    
    
    
    
    
    
    
    635,298Share-Based
Consulting and
Compensation
    
    
    
    
    
    
    
    
    
    
    670,642
    
    
    
    
    
    
    
    
    
    
    
    670,642Comprehensive Loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,225,327
    )
    
    
    167,365
    
    
    
    (2,057,962
    )Balance(deficit) at
September 30, 2007
    
    
    13,450,140
    
    
    $
    134,501
    
    
    $
    30,076,261
    
    
    $
    (18,236,317
    )
    
    $
    (131,559
    )
    
    $
    11,842,886
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Six Months EndedSeptember 30,2007
    
    
    2006Cash flows from operating activities:Net loss
    
    $
    (2,225,327
    )
    
    $
    (3,400,129
    )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization
    
    
    529,766
    
    
    
    147,989Gain on disposal of equipment
    
    
    (2,771
    )
    
    
    (3,584
    )Warrant expense
    
    
    
    
    
    
    372,680Stock-based consulting expense
    
    
    26,005
    
    
    
    29,524Stock-based compensation expense
    
    
    644,637
    
    
    
    447,652Deferred income taxes
    
    
    2,474
    
    
    
    (42,976
    )Deferred rent
    
    
    (17,500
    )
    
    
    (13,917
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (498,578
    )
    
    
    (368,428
    )Inventories
    
    
    (16,176
    )
    
    
    (221,587
    )Other current assets and income tax receivable
    
    
    64,660
    
    
    
    121,808Accounts payable
    
    
    190,508
    
    
    
    216,037Accrued liabilities
    
    
    (80,460
    )
    
    
    (86,062
    )Accrued pension liability, net
    
    
    (305,435
    )
    
    
    142,780Net cash used in operating activities
    
    
    (1,688,197
    )
    
    
    (2,658,213
    )Cash flows from investing activities:Proceeds from sale of short-term investments
    
    
    1,800,000
    
    
    
    1,137,647Purchase of short-term investments
    
    
    (1,200,000
    )
    
    
    Purchases of property, plant and equipment
    
    
    (135,984
    )
    
    
    (126,740
    )Proceeds from sale of equipment
    
    
    4,417
    
    
    
    4,294Payments for intangible assets
    
    
    (89,725
    )
    
    
    Net cash provided by investing activities
    
    
    378,708
    
    
    
    1,015,201Cash flows from financing activities:Proceeds from financing obligations
    
    
    178,374
    
    
    
    210,999Repayment of debt obligations
    
    
    (184,458
    )
    
    
    (104,656
    )Net proceeds from issuance of common stock, warrants and option exercise
    
    
    768,298
    
    
    
    1,967,023Net cash provided by financing activities
    
    
    762,214
    
    
    
    2,073,366Effect of exchange rates on cash and cash equivalents
    
    
    93,320
    
    
    
    (10,484
    )Net increase (decrease) in cash and cash equivalents
    
    
    (453,955
    )
    
    
    419,870Cash and cash equivalents at beginning of period
    
    
    3,763,702
    
    
    
    1,563,433Cash and cash equivalents at end of period
    
    $
    3,309,747
    
    
    $
    1,983,303Supplemental disclosure of cash flow information:Cash paid during the period for interest
    
    $
    17,024
    
    
    $
    14,615Cash paid during the period for income taxes
    
    
    38,923
    
    
    
    58,335Supplemental disclosure of non-cash financing and investing activities:Employee retirement savings plan contribution issued in common shares
    
    $
    
    
    
    $
    44,385Property, plant and equipment additions funded by lessor allowance and
classified as deferred rent
    
    
    
    
    
    
    280,000Purchase of intellectual property funded by issuance of stock
    
    $
    4,658,861
    
    
    
    
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1. Basis of Presentation
    2. Nature of Business, Sales of Common Stock and Corporate Liquidity
 Overview
 ® ®
 Strategy
  
    
    educate physicians about the benefits of our Urgent PC neurostimulation system;
    
    build patient awareness of office-based solutions;
    
    focus on office-based solutions for physicians;
    
    increase market coverage in the United States and internationally; and
    
    develop, license or acquire new products.
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Our Products
   Sales and Marketing
  Sales of Common Stock and Corporate Liquidity
   3. Short-term Investments
  4. Inventories
  September 30, 2007
    
    
    March 31, 2007Raw materials
    
    $
    311,033
    
    
    $
    254,988Work-in-process
    
    
    24,414
    
    
    
    20,773Finished goods
    
    
    548,172
    
    
    
    547,840$
    883,619
    
    
    $
    823,601
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5. Intangible Assets
   September 30, 2007Estimated
    
    
    GrossUseful Lives
    
    
    Carrying
    
    
    Accumulated(Years)
    
    
    Amount
    
    
    Amortization
    
    
    Net valueLicensed technology
    
    
    5
    
    
    $
    26,290
    
    
    $
    26,290
    
    
    $
    Patents and inventions
    
    
    6
    
    
    
    5,461,486
    
    
    
    827,810
    
    
    
    4,633,676Totals
    
    
    
    
    
    $
    5,487,776
    
    
    $
    854,100
    
    
    $
    4,633,676
 March 31, 2007Licensed technology
    
    
    5
    
    
    $
    26,290
    
    
    $
    26,290
    
    
    $
    Patents and inventions
    
    
    6
    
    
    
    712,900
    
    
    
    404,807
    
    
    
    308,093Totals
    
    
    
    
    
    $
    739,190
    
    
    $
    431,097
    
    
    $
    308,093
  Remainder of fiscal 2008
    
    $
    423,0032009
    
    
    845,9032010
    
    
    843,6192011
    
    
    840,6512012
    
    
    840,250Thereafter
    
    
    840,250$
    4,633,676
 6.
Deferred Rent and Leasehold Improvements
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7. Comprehensive Loss
  Three Months Ended
    
    
    Six Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net loss
    
    $
    (1,384,692
    )
    
    $
    (2,158,890
    )
    
    $
    (2,225,327
    )
    
    $
    (3,400,129
    )Items of other
comprehensive income
(loss):Translation adjustment
    
    
    156,903
    
    
    
    (18,492
    )
    
    
    179,030
    
    
    
    78,097Pension related
    
    
    (8,365
    )
    
    
    (416
    )
    
    
    (11,665
    )
    
    
    (11,819
    )Comprehensive loss
    
    $
    (1,236,154
    )
    
    $
    (2,177,798
    )
    
    $
    (2,057,962
    )
    
    $
    (3,333,851
    )
 8. Net Loss per Common Share
  Number of
    
    
    Range of ExerciseOptions/Warrants
    
    
    PricesFor the six months ended:September 30, 2007
    
    
    4,119,578
    
    
    $1.82 to $5.30September 30, 2006
    
    
    4,967,380
    
    
    $0.90 to $5.30
 9. Warrants
     10. Share-based Compensation
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Six Months Ended
    
    
    Six Months EndedSeptember 30, 2007
    
    
    September 30, 2006Expected life in years
    
    
    4.03
    
    
    
    7.88Risk-free interest rate
    
    
    4.61
    %
    
    
    4.98
    %Expected volatility
    
    
    91.47
    %
    
    
    100.26
    %Expected dividend yield
    
    
    0
    
    
    
    0Weighted-average fair value
    
    
    2.85
    
    
    
    1.96
    Weighted Avg.Weighted
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Avg. Exercise
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    Price
    
    
    Life (Years)
    
    
    ValueOptions outstanding at beginning of period
    
    
    2,169,866
    
    
    $
    3.62
    
    
    
    4.93Options granted
    
    
    282,500
    
    
    
    4.24
    
    
    
    4.28Options exercised
    
    
    (368,666
    )
    
    
    1.72
    
    
    
    Options surrendered
    
    
    (80,600
    )
    
    
    4.68
    
    
    
    Options outstanding at end of period
    
    
    2,003,100
    
    
    $
    4.00
    
    
    
    5.36
    
    
    
    1,394,825Exercisable at end of period
    
    
    1,556,597
    
    
    
    4.26
    
    
    
    5.29
    
    
    
    873,907
 11. Savings and Retirement Plans
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Three Months Ended
    
    
    Six Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Gross service cost
    
    $
    21,670
    
    
    $
    51,303
    
    
    $
    42,927
    
    
    $
    101,845Interest cost
    
    
    22,910
    
    
    
    30,941
    
    
    
    45,395
    
    
    
    61,354Expected return on assets
    
    
    (16,891
    )
    
    
    (17,764
    )
    
    
    (33,469
    )
    
    
    (35,208
    )Amortization
    
    
    1,619
    
    
    
    10,604
    
    
    
    3,209
    
    
    
    21,035Net periodic retirement cost
    
    $
    29,308
    
    
    $
    75,084
    
    
    $
    58,062
    
    
    $
    149,026
  SixMonths EndedSeptember 30,2007
    
    
    2006Discount rate
    
    
    4.90-5.30
    %
    
    
    4.25-5.50
    %Expected return on assets
    
    
    4.90-5.00
    %
    
    
    4.00-5.00
    %Expected rate of increase in future compensation:
    
    
    3
    %
    
    
    3
    %General
    
    
    0%-3
    %
    
    
    0%-3
    %Individual
 12. Foreign Currency Translation
   13. Income Tax Expense
 
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14. Business Segment and Geographic Information
 .
   United
    
    The
    
    UnitedStates
    
    Netherlands
    
    Kingdom
    
    Eliminations *
    
    ConsolidatedFiscal 2008Sales, three months
ended September 30,
2007
    
    $
    1,853,602
    
    
    $
    1,481,376
    
    
    $
    648,259
    
    
    $
    (943,694
    )
    
    $
    3,039,543Income tax expense,
three months ended
September 30, 2007
    
    
    
    
    
    
    41,783
    
    
    
    
    
    
    
    
    
    
    
    41,783Net income (loss),
three months ended
September 30, 2007
    
    
    (1,288,669
    )
    
    
    95,462
    
    
    
    (90,404
    )
    
    
    (101,081
    )
    
    
    (1,384,692
    )Long-lived assets
At September 30, 2007
    
    
    5,368,247
    
    
    
    770,228
    
    
    
    5,923
    
    
    
    
    
    
    
    6,144,398Fiscal 2007Sales, three months
ended September 30,
2006
    
    $
    707,733
    
    
    $
    1,252,452
    
    
    $
    423,270
    
    
    $
    (622,684
    )
    
    $
    1,760,771Income tax benefit,
three months ended
September 30, 2006
    
    
    
    
    
    
    (12,841
    )
    
    
    
    
    
    
    
    
    
    
    (12,841
    )Net income (loss),
three months ended
September 30, 2006
    
    
    (2,007,429
    )
    
    
    1,283
    
    
    
    (41,669
    )
    
    
    (111,075
    )
    
    
    (2,158,890
    )Long-lived assets
At September 30, 2006
    
    
    1,047,566
    
    
    
    730,261
    
    
    
    5,766
    
    
    
    
    
    
    
    1,783,593
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United
    
    The
    
    UnitedStates
    
    Netherlands
    
    Kingdom
    
    Eliminations *
    
    ConsolidatedFiscal 2008Sales, six months ended
September 30, 2007
    
    $
    3,204,395
    
    
    $
    3,218,154
    
    
    $
    1,163,912
    
    
    $
    (1,598,244
    )
    
    $
    5,988,217Income tax expense,
six months ended
September 30, 2007
    
    
    300
    
    
    
    137,640
    
    
    
    
    
    
    
    
    
    
    
    137,940Net income (loss), six
months ended September
30, 2007
    
    
    (2,486,013
    )
    
    
    385,828
    
    
    
    (153,139
    )
    
    
    27,997
    
    
    
    (2,225,327
    )Fiscal 2007Sales, six months ended
September 30, 2006
    
    $
    1,006,033
    
    
    $
    2,415,581
    
    
    $
    952,707
    
    
    $
    (849,341
    )
    
    $
    3,524,980Income tax expense,
six months ended
September 30, 2006
    
    
    
    
    
    
    17,911
    
    
    
    
    
    
    
    
    
    
    
    17,911Net income (loss), six
months ended September
30, 2006
    
    
    (3,355,374
    )
    
    
    109,210
    
    
    
    (99,344
    )
    
    
    (54,621
    )
    
    
    (3,400,129
    )
 
 *
    
    The information in the column entitled Eliminations represents intercompany transactions. 15. Recently Issued Accounting Standards
   16. Subsequent Events
   Page 14




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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  Forward-looking Statements
     Overview
   
  Page 15




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Critical Accounting Policies
  Revenue Recognition
 Accounts Receivable
 Inventories
 Foreign Currency Translation/Transactions
 Impairment of Long-Lived Assets
 Page 16




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Share-Based Compensation. Share-Based Payment,
  Defined Benefit Pension Plans.
 Income Taxes.
   Results of Operations
 Three months ended September 30, 2007 compared to three months ended September 30, 2006
    Page 17




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Page 18




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
 Six months ended September 30, 2007 compared to six months ended September 30, 2006
         Page 19




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
    Page 20




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Three Months Ended
    
    
    Six Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Gross ProfitGAAP gross profit
    
    $
    2,370,502
    
    
    $
    1,307,914
    
    
    $
    4,724,964
    
    
    $
    2,516,608% of sales
    
    
    78
    %
    
    
    74
    %
    
    
    79
    %
    
    
    71
    %SFAS 123 (R) stock
option charges
    
    
    9,107
    
    
    
    641
    
    
    
    9,686
    
    
    
    1,361Depreciation expenses
    
    
    13,054
    
    
    
    12,491
    
    
    
    28,604
    
    
    
    24,028Non-GAAP gross profit
    
    
    2,392,663
    
    
    
    1,321,046
    
    
    
    4,763,254
    
    
    
    2,541,997Operating ExpensesGAAP operating expenses
    
    
    3,755,494
    
    
    $
    2,789,395
    
    
    $
    6,919,303
    
    
    $
    5,581,045SFAS 123 (R) stock
option charges
    
    
    494,449
    
    
    
    165,933
    
    
    
    660,956
    
    
    
    475,815Depreciation expenses
    
    
    46,379
    
    
    
    42,789
    
    
    
    78,159
    
    
    
    70,848Amortization expenses
    
    
    206,482
    
    
    
    26,576
    
    
    
    423,003
    
    
    
    53,113Non-GAAP operating
expenses
    
    
    3,008,184
    
    
    
    2,554,097
    
    
    
    5,757,185
    
    
    
    4,981,269Operating LossGAAP operating loss
    
    
    (1,384,992
    )
    
    
    (1,481,481
    )
    
    
    (2,194,339
    )
    
    
    (3,064,437
    )SFAS 123 (R) stock
option charges
    
    
    503,556
    
    
    
    166,574
    
    
    
    670,642
    
    
    
    477,176Depreciation expenses
    
    
    59,433
    
    
    
    55,280
    
    
    
    106,763
    
    
    
    94,876Amortization expenses
    
    
    206,482
    
    
    
    26,576
    
    
    
    423,003
    
    
    
    53,113Non-GAAP operating
loss
    
    $
    (615,521
    )
    
    $
    (1,233,051
    )
    
    $
    (993,931
    )
    
    $
    (2,439,272
    )
 Liquidity and Capital Resources
 Cash Flows
   Sources of Liquidity
    Page 21




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
       Payments Due by PeriodRemainder
    
    
    Fiscal
    
    
    Fiscal
    
    
    Fiscalof Fiscal
    
    
    2009 and
    
    
    2011 and
    
    
    2013 andTotal
    
    
    2008
    
    
    2010
    
    
    2012
    
    
    thereafterMinimum royalty payments
    
    $
    166,500
    
    
    $
    27,000
    
    
    $
    108,000
    
    
    $
    31,500
    
    
    $
    Open purchase order commitments
    
    
    298,137
    
    
    
    178,297
    
    
    
    119,840
    
    
    
    
    
    
    
    Notes payable, including interest
    
    
    604,513
    
    
    
    53,404
    
    
    
    167,968
    
    
    
    109,732
    
    
    
    273,409Operating lease commitments (1)
    
    
    1,241,075
    
    
    
    130,378
    
    
    
    427,590
    
    
    
    375,166
    
    
    
    307,941Total contractual obligations
    
    $
    2,310,225
    
    
    $
    389,079
    
    
    $
    823,398
    
    
    $
    516,398
    
    
    $
    581,350
 
 (1)
    
    Included in our operating lease commitments as of September 30, 2007 is an aggregate of
$215,000 of payments to be made in equal instalments over 57 months under our lease
agreement for our facility in Eindhoven, The Netherlands. We terminated this lease in
October 2007 (see Note 16 to our Condensed Consolidated Financial Statements). Page 22




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ITEM 3. CONTROLS AND PROCEDURES.
 Evaluation of Disclosure Controls Procedures.
 Internal Control Matters
  Page 23




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PART II. OTHER INFORMATION
  
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  AbstentionsVotes
    
    Votes
    
    Votes
    
    And Broker Non-For
    
    Against
    

Withheld
    
    VotesProposal 1  Election
of Directors:Thomas E. Jamison
    
    
    11,566,489
    
    
    
    
    
    
    
    
    
    
    
    816,097James P. Stauner
    
    
    11,566,489
    
    
    
    
    
    
    
    
    
    
    
    816,097
 
 ITEM 6. EXHIBITS.
    Page 24




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SIGNATURES
  UROPLASTY, INC.Date:  October 31, 2007
    By:
    /s/ DAVID B. KAYSENDavid B. KaysenPresident and Chief Executive OfficerDate:  October 31, 2007
    By:
    /s/ MAHEDI A. JIWANIMahedi A. JiwaniChief Financial Officer