##### 



Exhibit 13
  
 TABLE OF CONTENTS
 Page(s)Report of Independent Registered Public Accounting Firm
    
    F-2Financial Statements:Consolidated Balance Sheets
    
    F-3  F-4Consolidated Statements of Operations
    
    F-5Consolidated Statements of Shareholders Equity and Comprehensive
Loss
    
    F-6Consolidated Statements of Cash Flows
    
    F-7Notes to Consolidated Financial Statements
    
    F-8  F-20
 F-1




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 F-2




---



##### 



2006
    
    
    2005AssetsCurrent assets:Cash and cash equivalents
    
    $
    1,563,433
    
    
    $
    1,405,324Short-term investments
    
    
    1,137,647
    
    
    
    87,360Accounts receivable, net
    
    
    716,587
    
    
    
    944,527Income tax receivable
    
    
    270,934
    
    
    
    114,189Inventories
    
    
    757,062
    
    
    
    547,476Other
    
    
    353,178
    
    
    
    161,920Total current assets
    
    
    4,798,841
    
    
    
    3,260,796Property, plant, and equipment, net
    
    
    1,079,438
    
    
    
    1,040,253Intangible assets, net of accumulated
amortization of $327,586 and $225,090,
respectively
    
    
    411,604
    
    
    
    39,100Deferred tax assets
    
    
    111,361
    
    
    
    103,075Total assets
    
    $
    6,401,244
    
    
    $
    4,443,224
  F-3




---



##### 



2006
    
    
    2005Liabilities and Shareholders EquityCurrent liabilities:Current maturities  notes payable
    
    $
    41,658
    
    
    $
    44,606Accounts payable
    
    
    506,793
    
    
    
    362,994Accrued liabilities:Compensation and payroll taxes
    
    
    350,558
    
    
    
    284,255Sales tax
    
    
    16,791
    
    
    
    181Royalties
    
    
    12,748
    
    
    
    24,710Clinical
    
    
    21,350
    
    
    
    12,702Audit and tax-consulting
    
    
    109,255
    
    
    
    45,566Legal
    
    
    24,791
    
    
    
    22,750Warrant liability
    
    
    665,356
    
    
    
    Other
    
    
    382,488
    
    
    
    88,518Total current liabilities
    
    
    2,131,788
    
    
    
    886,282Notes payable  less current maturities:
    
    
    389,241
    
    
    
    461,265Accrued pension liability
    
    
    473,165
    
    
    
    303,781Total liabilities
    
    
    2,994,194
    
    
    
    1,651,328Commitments and ContingenciesShareholders equity:Common stock $.01 par value; 20,000,000
shares authorized, 6,937,786 and
4,699,597 shares issued and outstanding
at March 31, 2006 and 2005,
respectively
    
    
    69,378
    
    
    
    46,996Additional paid-in capital
    
    
    14,831,787
    
    
    
    9,366,644Accumulated deficit
    
    
    (11,034,100
    )
    
    
    (6,491,387
    )Accumulated other comprehensive loss
    
    
    (460,015
    )
    
    
    (130,357
    )Total shareholders equity
    
    
    3,407,050
    
    
    
    2,791,896Total liabilities and shareholders equity
    
    $
    6,401,244
    
    
    $
    4,443,224
  F-4




---



##### 



2006
    
    
    2005Net sales
    
    $
    6,142,612
    
    
    $
    6,657,726Cost of goods sold
    
    
    1,837,716
    
    
    
    1,755,456Gross profit
    
    
    4,304,896
    
    
    
    4,902,270Operating expensesGeneral and administrative
    
    
    2,958,982
    
    
    
    2,260,240Research and development
    
    
    3,324,201
    
    
    
    2,258,127Selling and marketing
    
    
    3,399,896
    
    
    
    2,015,6559,683,079
    
    
    
    6,534,022Operating loss
    
    
    (5,378,183
    )
    
    
    (1,631,752
    )Other income (expense)Warrant benefit
    
    
    707,320
    
    
    
    Interest income
    
    
    142,379
    
    
    
    30,168Interest expense
    
    
    (29,494
    )
    
    
    (25,934
    )Foreign currency exchange loss
    
    
    (31,195
    )
    
    
    (15,744
    )Other
    
    
    (413
    )
    
    
    788,597
    
    
    
    (11,510
    )Loss before income taxes
    
    
    (4,589,586
    )
    
    
    (1,643,262
    )Income tax expense (benefit)
    
    
    (46,873
    )
    
    
    91,503Net loss
    
    $
    (4,542,713
    )
    
    $
    (1,734,765
    )Net loss per common share:Basic and diluted
    
    $
    (0.67
    )
    
    $
    (0.37
    )Weighted average common shares outstanding:Basic and diluted
    
    
    6,746,412
    
    
    
    4,651,732
  F-5




---



##### 



AccumulatedAdditional
    
    
    
    
    
    
    Other
    
    
    TotalCommon Stock
    
    
    Paid-in
    
    
    Accumulated
    
    
    Comprehensive
    
    
    ShareholdersShares
    
    
    Amount
    
    
    Capital
    
    
    Deficit
    
    
    Loss
    
    
    EquityBalance at March 31, 2004
    
    
    4,584,802
    
    
    $
    45,848
    
    
    $
    9,130,580
    
    
    $
    (4,756,622
    )
    
    $
    (315,573
    )
    
    $
    4,104,233Exercise of stock options
    
    
    38,300
    
    
    
    383
    
    
    
    67,638
    
    
    
    
    
    
    
    
    
    
    
    68,021Warrants conversion
    
    
    68,395
    
    
    
    684
    
    
    
    136,107
    
    
    
    
    
    
    
    
    
    
    
    136,791Employee retirement
savings plan contribution
    
    
    8,100
    
    
    
    81
    
    
    
    32,319
    
    
    
    
    
    
    
    
    
    
    
    32,400Comprehensive loss:Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,734,765
    )
    
    
    Translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    150,505Additional pension
liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,711Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,549,549
    )Balance at March 31, 2005
    
    
    4,699,597
    
    
    
    46,996
    
    
    
    9,366,644
    
    
    
    (6,491,387
    )
    
    
    (130,357
    )
    
    
    2,791,896Proceeds from private
placement
    
    
    2,147,142
    
    
    
    21,471
    
    
    
    7,493,526
    
    
    
    
    
    
    
    
    
    
    
    7,514,997Cost of private placement
    
    
    
    
    
    
    
    
    
    
    (934,679
    )
    
    
    
    
    
    
    
    
    
    
    (934,679
    )Reissuance of warrants
    
    
    
    
    
    
    
    
    
    
    (1,372,676
    )
    
    
    
    
    
    
    
    
    
    
    (1,372,676
    )Warrant registration costs
    
    
    
    
    
    
    
    
    
    
    (21,324
    )
    
    
    
    
    
    
    
    
    
    
    (21,324
    )Liquidated damages
settlement shares
    
    
    57,381
    
    
    
    574
    
    
    
    150,403
    
    
    
    
    
    
    
    
    
    
    
    150,977Exercise of stock options
    
    
    33,666
    
    
    
    337
    
    
    
    45,362
    
    
    
    
    
    
    
    
    
    
    
    45,699Extension of employee
options after termination
    
    
    
    
    
    
    
    
    
    
    104,531
    
    
    
    
    
    
    
    
    
    
    
    104,531Comprehensive loss:Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,542,713
    )
    
    
    Translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (206,356
    )Additional pension
liability
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (123,302
    )Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,872,371
    )Balance at March 31, 2006
    
    
    6,937,786
    
    
    $
    69,378
    
    
    $
    14,831,787
    
    
    $
    (11,034,100
    )
    
    $
    (460,015
    )
    
    $
    3,407,050
  F-6




---



##### 



2006
    
    
    2005Cash flows from operating activities:Net loss
    
    $
    (4,542,713
    )
    
    $
    (1,734,765
    )Adjustments to reconcile net loss to net cash used in operations:Depreciation and amortization
    
    
    261,496
    
    
    
    163,879Loss on disposal of assets
    
    
    1,343
    
    
    
    3,751Stock-based severance expense
    
    
    104,531
    
    
    
    Warrant benefit
    
    
    (707,320
    )
    
    
    Deferred tax assets
    
    
    (16,015
    )
    
    
    23,680Changes in operating assets and liabilities:Accounts receivable
    
    
    163,701
    
    
    
    168,779Inventories
    
    
    (280,505
    )
    
    
    21,896Other current assets
    
    
    (362,009
    )
    
    
    78,867Accounts payable
    
    
    158,381
    
    
    
    162,526Accrued liabilities
    
    
    585,992
    
    
    
    (221,646
    )Accrued pension liability
    
    
    192,759
    
    
    
    (38,909
    )Additional pension liability
    
    
    (130,305
    )
    
    
    36,537Net cash used in operating activities
    
    
    (4,570,664
    )
    
    
    (1,335,405
    )Cash flows from investing activities:Purchase of short-term investments
    
    
    (4,768,323
    )
    
    
    (87,360
    )Proceeds from short-term
    
    
    3,718,036
    
    
    
    Payments for property, plant and equipment
    
    
    (252,238
    )
    
    
    (74,966
    )Payments relating to intangible assets
    
    
    (454,167
    )
    
    
    (7,277
    )Net cash used in investing activities
    
    
    (1,756,692
    )
    
    
    (169,603
    )Cash flows from financing activities:Repayment of notes payable
    
    
    (41,847
    )
    
    
    (43,356
    )Net proceeds from issuance of common stock and warrants
    
    
    6,604,693
    
    
    
    204,812Net cash provided by financing activities
    
    
    6,562,846
    
    
    
    161,456Effect of exchange rates on cash and cash equivalents
    
    
    (77,381
    )
    
    
    51,206Net increase (decrease) in cash and cash equivalents
    
    
    158,109
    
    
    
    (1,292,346
    )Cash and cash equivalents at beginning of year
    
    
    1,405,324
    
    
    
    2,697,670Cash and cash equivalents at end of year
    
    $
    1,563,433
    
    
    $
    1,405,324Supplemental disclosure of cash flow information:Cash paid during the year for interest
    
    $
    21,299
    
    
    $
    24,751Cash paid during the year for income taxes
    
    $
    94,442
    
    
    $
    304,018Supplemental disclosure of non-cash financing and investing activities:Shares issued for 401(k) plan profit sharing contribution
    
    $
    
    
    
    $
    32,400Shares issued for liquidated damages settlement
    
    $
    150,977
    
    
    $
    Additional pension liability, net of tax
    
    $
    123,302
    
    
    $
    (34,711
    )
  F-7




---



##### 



1.
    
    Summary of Significant Accounting Policies
 Nature of Business.
 Principles of Consolidation.
 Revenue Recognition.
 Use of Estimates.
 Disclosures About Fair Value of Financial Instruments.
 
    
    Cash equivalents and short-term investments:The carrying amount approximates fair
value because of the short maturity of these instruments.
    
    Notes payable:The fair value of the Companys notes payable are estimated based on the
current rates offered to the Company for similar instruments with the same remaining
maturities and similar collateral requirements. At March 31, 2006 and 2005, the fair value
of the Companys notes payable approximated their carrying value.
 Cash and Cash Equivalents.
 Short-term Investments.
 Accounts Receivable
 Income Taxes.
 F-8




---



##### 



Product Warranty
 Inventories.
 2006
    
    
    2005Raw materials
    
    $
    340,268
    
    
    $
    193,980Work-in-process
    
    
    26,183
    
    
    
    75,337Finished goods
    
    
    390,611
    
    
    
    278,159$
    757,062
    
    
    $
    547,476
 Property, Plant, and Equipment.
 2006
    
    
    2005Land
    
    $
    148,402
    
    
    $
    158,861Building
    
    
    662,882
    
    
    
    692,646Equipment
    
    
    1,531,926
    
    
    
    1,391,5162,343,210
    
    
    
    2,243,023Less accumulated depreciation
    
    
    (1,263,772
    )
    
    
    (1,202,770
    )$
    1,079,438
    
    
    $
    1,040,253
  Intangible Assets.
 March 31, 2006GrossEstimated
    
    
    Carrying
    
    
    AccumulatedLives (Years)
    
    
    Amount
    
    
    Amortization
    
    
    Net valueLicensed technology
    
    
    5
    
    
    $
    501,290
    
    
    $
    111,183
    
    
    $
    390,107Patents and inventions
    
    
    6
    
    
    
    237,900
    
    
    
    216,403
    
    
    
    21,497$
    739,190
    
    
    $
    327,586
    
    
    $
    411,604March 31, 2005Licensed technology
    
    
    5
    
    
    $
    26,290
    
    
    $
    19,718
    
    
    $
    6,572Patents and inventions
    
    
    6
    
    
    
    237,900
    
    
    
    205,372
    
    
    
    32,528$
    264,190
    
    
    $
    225,090
    
    
    $
    39,100
 F-9




---



##### 



2007
    
    $
    99,0002008
    
    
    97,0002009
    
    
    96,0002010
    
    
    94,0002011
    
    
    26,000$
    412,000
 Impairment of Long-Lived Assets
 Foreign Currency Translation.
  Stock-Based Compensation.
 Accounting for Stock-Based
Compensation Accounting for Equity
Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling,
Goods or Services
 F-10




---



##### 



2006
    
    
    2005Net loss  As reported
    
    $
    (4,542,713
    )
    
    $
    (1,734,765
    )Deduct: Total stock-based employee compensation
expense determined under fair value based
method for all awards
    
    
    (3,062,324
    )
    
    
    (2,321,745
    )Net loss  Pro forma
    
    $
    (7,605,037
    )
    
    $
    (4,056,510
    )Net loss per common share  As reported:Basic and diluted
    
    $
    (0.67
    )
    
    $
    (0.37
    )Net loss per common share  Pro forma:Basic and diluted
    
    $
    (1.13
    )
    
    $
    (0.87
    )
    2006
    
    
    2005Expected dividend yield
    
    
    0.00
    %
    
    
    0.00
    %Risk-free interest rate
    
    
    4.39
    %
    
    
    3.40
    %Expected volatility
    
    
    116
    %
    
    
    117
    %Expected life, in years
    
    
    6.52
    
    
    
    7.40
 Basic and Diluted Net Loss per Common Share.
 Number of
    
    
    Range ofOptions/Warrants
    
    
    exercise pricesYears ended:March 31, 2006
    
    
    3,875,473
    
    
    $
    0.90-10.50March 31, 2005
    
    
    1,820,859
    
    
    $
    0.90-10.50
 New Accounting Pronouncements.
 Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections  Accounting Changes and Error Corrections Accounting Changes Reporting Accounting
Changes in Interim Financial Statements.
 F-11




---



##### 



Statement of Financial Accounting Standards No. Inventory Costs  Inventory Costs, An Amendment of Accounting Research
Bulletin No. 43, Chapter 4, Inventories
 Statement of Financial Accounting Standards No. 123(R), Share-Based Payment,  Share-Based Payment Accounting for Stock-Based Compensation
   F-12




---



##### 



2.
    
    Notes Payable
  2006
    
    
    2005Mortgage note, monthly payments of $2,938 plus
interest through November 2017, 5 year fixed rate
interest at 4.7% from May 2006 until April 2011
(rate at March 31, 20054.3%)
    
    $
    415,422
    
    
    $
    482,467Note payable, monthly payments of $534 plus fixed
rate interest through August 2008 (rate until
August 20084.4%)
    
    
    15,477
    
    
    
    23,404430,899
    
    
    
    505,871Less current maturities
    
    
    41,658
    
    
    
    44,606$
    389,241
    
    
    $
    461,265
  2007
    
    $
    42,0002008
    
    
    42,0002009
    
    
    38,0002010
    
    
    35,0002011
    
    
    35,000Thereafter
    
    
    239,000$
    431,000
  3.
    
    Shareholders Equity
 Stock Options.
    F-13




---



##### 



WeightedaverageShares
    
    
    exercise priceOutstanding
    
    
    per shareBalance at March 31, 2004
    
    
    854,353
    
    
    $
    2.80Granted
    
    
    1,047,400
    
    
    
    5.24Exercised
    
    
    (38,300
    )
    
    
    1.78Cancelled
    
    
    (142,594
    )
    
    
    7.16Balance at March 31, 2005
    
    
    1,720,859
    
    
    
    3.96Granted
    
    
    330,000
    
    
    
    3.20Exercised
    
    
    (33,666
    )
    
    
    1.36Cancelled
    
    
    (128,866
    )
    
    
    4.94Balance at March 31, 2006
    
    
    1,888,327
    
    
    $
    3.80
  WeightedaverageNumber
    
    
    remainingof shares
    
    
    life in
    
    
    NumberPrice

    
    outstanding
    
    
    years
    
    
    exercisable$0.90
    
    
    
    1,200
    
    
    
    1.60
    
    
    
    8001.10
    
    
    
    350,200
    
    
    
    1.30
    
    
    
    288,5002.25
    
    
    
    30,000
    
    
    
    7.05
    
    
    
    18,0002.40
    
    
    
    147,526
    
    
    
    0.84
    
    
    
    140,0262.70
    
    
    
    10,000
    
    
    
    4.95
    
    
    
    2,5002.80
    
    
    
    60,000
    
    
    
    2.41
    
    
    
    53,3342.85
    
    
    
    70,000
    
    
    
    4.85
    
    
    
    23,3322.90
    
    
    
    40,000
    
    
    
    4.76
    
    
    
    40,0003.00
    
    
    
    100,000
    
    
    
    4.50
    
    
    
    100,0003.50
    
    
    
    10,000
    
    
    
    2.51
    
    
    
    10,0003.75
    
    
    
    5,000
    
    
    
    3.29
    
    
    
    5,0003.80
    
    
    
    23,334
    
    
    
    3.88
    
    
    
    23,3344.10
    
    
    
    500
    
    
    
    3.86
    
    
    
    5004.20
    
    
    
    50,000
    
    
    
    4.07
    
    
    
    50,0005.19
    
    
    
    500,000
    
    
    
    8.76
    
    
    
    500,0005.30
    
    
    
    488,900
    
    
    
    3.62
    
    
    
    488,90010.50
    
    
    
    1,667
    
    
    
    0.17
    
    
    
    1,6671,888,327
    
    
    
    
    
    
    
    1,745,893
  Warrants.
 F-14




---



##### 



Other Comprehensive Loss.
 Accumulated
    
    
    Accumulatedtranslation
    
    
    additional pensionadjustment
    
    
    liability
    
    
    TotalBalance at March 31, 2004
    
    
    (215,078
    )
    
    
    (100,495
    )
    
    
    (315,573
    )Translation adjustment
    
    
    150,505
    
    
    
    
    
    
    
    150,505Additional pension liability
    
    
    
    
    
    
    34,711
    
    
    
    34,711Balance at March 31, 2005
    
    $
    (64,573
    )
    
    $
    (65,784
    )
    
    $
    (130,357
    )Translation adjustment
    
    
    (206,356
    )
    
    
    
    
    
    
    (206,356
    )Additional pension liability
    
    
    
    
    
    
    (123,302
    )
    
    
    (123,302
    )Balance at March 31, 2006
    
    $
    (270,929
    )
    
    $
    (189,086
    )
    
    $
    (460,015
    )
 4.
    
    Commitments and Contingencies
 Royalties.
    F-15




---



##### 



Option for Asset Acquisition
 Purchase Requirements
 Operating Lease Commitments.
 2007
    
    $
    328,0002008
    
    
    217,0002009
    
    
    178,0002010
    
    
    144,0002011
    
    
    142,000Thereafter
    
    
    437,000$
    1,446,000
  Employment Agreements.
 Product Liability.
 5.
    
    Savings and Retirement Plans
  F-16




---



##### 



2006
    
    
    2005Gross service cost, net of employee contribution
    
    $
    170,319
    
    
    $
    141,745Interest cost
    
    
    99,773
    
    
    
    89,031Management cost
    
    
    23,112
    
    
    
    Expected return on assets
    
    
    (57,730
    )
    
    
    (56,001
    )Amortization
    
    
    34,698
    
    
    
    56,394Net periodic retirement cost
    
    $
    270,172
    
    
    $
    231,169
  2006
    
    
    2005Projected benefit obligation, beginning of year
    
    $
    2,062,036
    
    
    $
    1,503,534Service cost
    
    
    170,319
    
    
    
    141,745Interest cost
    
    
    99,773
    
    
    
    89,031Other
    
    
    11,486
    
    
    
    (11,759
    )Actuarial result
    
    
    278,123
    
    
    
    254,618Foreign currency translation
    
    
    (145,785
    )
    
    
    84,867Projected benefit obligation, end of year
    
    $
    2,475,952
    
    
    $
    2,062,036Plan assets, beginning of year
    
    $
    1,246,402
    
    
    $
    998,620Contributions to plan
    
    
    201,184
    
    
    
    210,124Benefits paid
    
    
    
    
    
    
    (9,415
    )Management cost
    
    
    (23,112
    )
    
    
    Actual return on assets
    
    
    70,681
    
    
    
    (3,588
    )Foreign currency translation
    
    
    (88,838
    )
    
    
    50,661Plan assets, end of year
    
    $
    1,406,317
    
    
    $
    1,246,402
 F-17




---



##### 



2006
    
    
    2005Funded status
    
    $
    (1,069,635
    )
    
    $
    (815,634
    )Unrecognized net loss
    
    
    824,876
    
    
    
    638,579Minimum pension liability
    
    
    (228,406
    )
    
    
    (126,726
    )Accrued pension liability
    
    $
    (473,165
    )
    
    $
    (303,781
    )
  2006
    
    
    2005Discount rate
    
    
    4.25-5.00
    %
    
    
    4.50-5.50
    %Expected return on assets
    
    
    4.00-5.00
    %
    
    
    4.00-5.00
    %Expected rate of increase in future compensationgeneral
    
    
    3
    %
    
    
    3
    %individual
    
    
    0%-3
    %
    
    
    0%-3
    %
 6.
    
    Income Taxes
  2006
    
    
    2005Income tax provision:Current:U.S. and state
    
    $
    
    
    
    $
    Foreign
    
    
    (36,744
    )
    
    
    79,585Deferred:U.S. and state
    
    
    
    
    
    
    Foreign
    
    
    (10,129
    )
    
    
    11,918Total income tax expense (benefit)
    
    $
    (46,873
    )
    
    $
    91,503
  2006
    
    
    2005Statutory federal income tax benefit
    
    $
    (1,560,459
    )
    
    $
    (589,820
    )State tax benefit
    
    
    26,822
    
    
    
    Valuation allowance increase
    
    
    1,437,790
    
    
    
    792,685UK temporary differences not previously
tax effected
    
    
    
    
    
    
    (109,983
    )Other
    
    
    48,974
    
    
    
    (1,379
    )$
    (46,873
    )
    
    $
    91,503
 F-18




---



##### 



2006
    
    
    2005Deferred tax assets:Pension liability
    
    $
    93,368
    
    
    $
    110,405Other reserves and accruals
    
    
    39,201
    
    
    
    70,619Deferred profit on intercompany sales
    
    
    99,350
    
    
    
    186,166Net operating loss carryforwards
    
    
    5,599,391
    
    
    
    4,018,0445,831,310
    
    
    
    4,385,234Less valuation allowance
    
    
    (5,719,949
    )
    
    
    (4,282,159
    )$
    111,361
    
    
    $
    103,075
    7.
    
    Business Segment Information
 ®
 ®
  F-19




---



##### 



AdjustmentsUnited
    
    The
    
    United
    
    andStates
    
    Netherlands
    
    Kingdom
    
    eliminations
    
    ConsolidatedFiscal 2006Sales to customers
    
    $
    94,755
    
    
    $
    4,830,203
    
    
    $
    1,711,586
    
    
    $
    (493,932
    )
    
    $
    6,142,612Income tax expense
(benefit)
    
    
    
    
    
    
    (46,873
    )
    
    
    
    
    
    
    
    
    
    
    (46,873
    )Net income (loss)
    
    
    (4,572,337
    )
    
    
    (99,012
    )
    
    
    (107,828
    )
    
    
    236,464
    
    
    
    (4,542,713
    )Long-lived assets
at March 31, 2006
    
    
    767,984
    
    
    
    717,692
    
    
    
    5,366
    
    
    
    
    
    
    
    1,491,042Fiscal 2005Sales to customers
    
    $
    
    
    
    $
    5,612,250
    
    
    $
    1,703,365
    
    
    $
    (657,889
    )
    
    $
    6,657,726Income tax expense
    
    
    
    
    
    
    91,503
    
    
    
    
    
    
    
    
    
    
    
    91,503Net income (loss)
    
    
    (1,855,416
    )
    
    
    153,977
    
    
    
    21,990
    
    
    
    (55,316
    )
    
    
    (1,734,765
    )Long-lived assets
at March 31, 2005
    
    
    277,780
    
    
    
    791,121
    
    
    
    10,452
    
    
    
    
    
    
    
    1,079,353
 8.
    
    Corporate Liquidity
  9.
    
    Subsequent Events
   F-20