<html>

<head>


<title>Pro-Dex, Inc. Form 8-K by www.edgar2.com</title>



</head>

<body lang=EN-US link=blue vlink=purple>











<p>&nbsp;</p>



<p style='margin-top:0pt' align="center"><b><font size="2">SECURITIES AND EXCHANGE COMMISSION<br>
  Washington, D.C. 20549<br>
FORM 8-K</font></b></p>

<p align="center"><b><font size="2">CURRENT REPORT</font></b></p>

<p style='margin-top:0pt' align="center"><b><font size="2">PURSUANT TO SECTION 13 OR 15(d) OF<br>
THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>



<div align="center">



<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date of Report
	(Date of earliest event reported)</font></td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <div style="border-bottom: 1px solid #000000">
	<p align="center"><font size="2"> <b>January 5, 2006</b></font></div>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <div style="border-bottom: 1px solid #000000">
	<p align="center"><b>Pro-Dex,
Inc</b> </div>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align="center"><font size="2">(Exact name of registrant as specified
in its charter)</font></td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp; </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Colorado</b></font><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
	</font></b></u><font size="2">(State or other
  jurisdiction<br>
	of incorporation)</font></p>
  </td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:0pt;page-break-after:auto' align="center"><font size="2">
	<b><u>0-14942<br>
	</u></b>(Commission<br>
	File Number)</font></p>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">84-1261240<br>
	</font></u></b><font size="2">(IRS Employer<br>
	Identification No.)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp; </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <div style="border-bottom: 1px solid #000000">
	<p align="center"><font size="2"><b>151 E. Columbine Avenue, Santa Ana, California 92707</b></font></div>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align="center"><font size="2">(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;
	(Zip Code)</font></td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">Registrant's telephone number, including area code</font></td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <div style="border-bottom: 1px solid #000000">
	<p align="center"> <b><font size="2">714-241-4411</font></b></div>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <div style="border-bottom: 1px solid #000000">
	<p align="center"> <b><font size="2">Not Applicable</font></b></div>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:320px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:470px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

<p align=center style='text-align:center'><font size="2">(Former
name or former address, if changed since last report)</font></p>
  </td>
  <td valign=top style='width:350px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
 </tr>
</table>

</div>

<p align=center style='text-align:center'>&nbsp;</p>

<p align=center style='text-align:left'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):</font></p>



<p style='line-height:13.0pt'><font size="2"><font face="Wingdings">o </font>Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)</font></p>



<p style='line-height:13.0pt'><font size="2"><font face="Wingdings">o </font>Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)</font></p>



<p style='line-height:13.0pt'><font size="2"><font face="Wingdings">o </font>Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>



<p style='line-height:13.0pt'><font size="2"><font face="Wingdings">o </font>Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>





<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>








</font>
<p><font size="2">&nbsp;</font></p>



<p style='margin-top:0pt'><b><font size="2">Item 1.01. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry into a
Material Definitive Agreement.</font></b></p>

<p align="justify" style="text-indent: 36pt"><font size="2">On January 5, 2006, Pro-Dex Astromec,
Inc., a Nevada corporation (the &quot;Subsidiary&quot;), a wholly-owned
subsidiary of Pro-Dex, Inc. (the &quot;Company&quot;), entered into an Asset
Purchase Agreement (the &quot;Asset Purchase Agreement&quot;) with Astromec,
Inc., a Nevada corporation (&quot;Astromec&quot;) whereby the Subsidiary
purchased from Astromec substantially all of the assets related to Astromec's fractional
horsepower DC motor development and manufacturing business (the
&quot;Assets&quot;).&nbsp; The Subsidiary also assumed certain liabilities of
Astromec as defined in the Asset Purchase Agreement. The Subsidiary was formed
under the laws of the State of Nevada on December&nbsp;27, 2005.&nbsp; Since
the Subsidiary is a wholly owned subsidiary of the Company, the financial
investments and transactions of both companies are presented on a consolidated
basis.&nbsp; M.D. Glover, Inc., a Nevada corporation (&quot;Glover,
Inc.&quot;), and Malcolm D. Glover, Jr., as principal shareholders of Astromec,
and Malcolm D. Glover, Sr., as sole shareholder of Glover, Inc., are each party
to the Asset Purchase Agreement with respect to customary and standard
representations and warranties and indemnity obligations of Astromec. &nbsp;</font></p>

<p style='text-align:justify'><font size="2">The purchase price for the Assets consisted of $2,700,000 in cash
payable to Astromec, $100,000 of which shall be held back until July 5, 2006 to cover any adjustments in the purchase price that might be required
pursuant to: </font> </p>

<ul type=disc>
 <li class=MsoNormal style='color:black'><font size="2">a post-closing review of the audited
     balance sheet of Astromec as of January 5, 2006, and/or </font> </li>
 <li class=MsoNormal style='color:black;margin-top:12.0pt'><font size="2">any indemnity
     obligations of Astromec under the Asset Purchase Agreement that arise
     prior to or on July 5, 2006, if any. </font> </li>
</ul>

<p style='margin-right:0pt;margin-left:
0pt;text-align:justify'><font size="2">The
Company paid $1,600,000 of the purchase price out of cash on hand.&nbsp; The
remaining $1,000,000 was paid with borrowings from Wells Fargo Bank pursuant to
the Loan Agreement and Term Note described in more detail below. </font> </p>

<p style='margin-top:0pt'><b><font size="2">Item 2.01. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Completion of
Acquisition or Disposition of Assets.</font></b></p>

<p align="justify" style="text-indent: 36pt"><font size="2">As stated above in Item 1.01, on January 5, 2006, the Subsidiary entered into an Asset Purchase Agreement with Astromec, whereby the Subsidiary
purchased substantially all of the assets related to Astromec's fractional
horsepower DC motor development and manufacturing business.&nbsp; Also as stated
above in Item 1.01, on January 3, 2006, the Company entered into a Purchase and
Sale Agreement and Escrow Instructions with Glover, Inc., whereby pending the
close of escrow, the Company shall purchase real property and an industrial
building and related improvements located in Carson City, Nevada.&nbsp; The
details of the acquisition of these assets are described in Item 1.01, which is
incorporated in its entirety by this reference into this Item 2.01. </font> </p>

<p align="justify" style="text-indent: 36pt"><font size="2">In determining the purchase price for Astromec, the Company
considered the historical and expected earnings and cash flow of Astromec, as
well as the value of companies of a size and in an industry similar to
Astromec, comparable transactions, and the market for such companies
generally.&nbsp; The purchase price represented a premium of approximately $1,985,000
over the $1,018,000 recorded net worth of the assets assumed from Astromec.&nbsp; In
determining this premium, the Company considered the synergistic and strategic
advantages provided by having a motor manufacturing assets and the value of the
goodwill, customer relationships and technology of Astromec.&nbsp; Goodwill
associated with the Astromec acquisition totaled approximately $1,775,000.&nbsp;
</font> </p>
<p align="justify">&nbsp;</p>
<p align="justify">&nbsp;</p>
<p align="center"><font size="2">2</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p>&nbsp;</p>



<p align="justify" style="text-indent: 36pt"><font size="2">In connection with the execution of the Asset Purchase Agreement,
on January 3, 2006, the Company entered into a Purchase and Sale Agreement and
Escrow Instructions (the &quot;Real Property Purchase Agreement&quot;) with
Glover, Inc., whereby pending the close of escrow, the Company shall purchase
4.4 acres of real property and a 20,000 square foot industrial building and
related improvements located in Carson City, Nevada.&nbsp; M.D. Glover, Inc.,
the majority shareholder of Astromec, is the current owner of the
property.&nbsp; The property comprises the facilities where Astromec has conducted
its business prior to the close of the Asset Purchase Agreement, and the
Company currently plans to continue factional horsepower DC motor development
and manufacturing operations at the property.&nbsp; Upon the close of escrow,
the Company shall pay $2,200,000 for the property subject to further
analysis.&nbsp; The Company plans to pay $550,000 of the purchase price out of
cash on hand and anticipates that the remaining $1,650,000 will be paid for out
of proceeds from a $1,650,000 ten-year first mortgage financing on the property.</font></p>

<p style='text-align:justify;text-indent:36pt'><font size="2">On January 4, 2006, the Company entered into a Term Note and
related Loan Agreement (the Term Note and Loan Agreement collectively referred
to as the &quot;Loan Documents&quot;) with Wells Fargo Bank, National
Association (the &quot;Bank&quot;), whereby the Company borrowed the principal
sum of $1,000,000 (collectively, the &quot;Loan&quot;).&nbsp; The proceeds from
the Loan were applied to the purchase price for the Assets of Astromec
described above.&nbsp; The principal balance of the Loan bears interest either:
</font>
</p>

<ul>
	<li>
	<p style='margin-left:36.0pt;text-align:justify;text-indent:-18.0pt'>
	<font size="2">at a
fluctuating rate per annum equal to the Bank's Prime Rate as in effect from
time to time, or </font></p></li>
	<li>
	<p style='margin-right:0pt;margin-left:
36.0pt;text-align:justify;text-indent:-18.0pt'><font size="2">at a
fixed rate per annum determined by the Bank to be 2.50% above LIBOR in effect
on the first day of the applicable fixed rate term.&nbsp; </font></p></li>
</ul>



<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fixed rate term may be for a period of either 1, 2, 3 or 6 months as
determined by the Company pursuant to the terms of the Loan Documents.&nbsp;
The Company has chosen that the principal balance initially bear interest based
on the 2.50% above LIBOR rate for a fixed rate term of one month.&nbsp; The
principal amount of the Loan shall be payable on the 4<sup>th </sup>day of each
month in installments of $20,833 commencing February 4, 2006 and continuing up to and including December 4, 2009, with a final installment consisting of
all remaining unpaid principal due and payable in full on January 4, 2010.&nbsp; Accrued interest under the Loan shall be payable on the 4<sup>th </sup>day of
each month commencing February 4, 2006.</font></p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:center; margin-left:0pt; margin-right:0pt; margin-top:0pt'>
<font size="2">3</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p>&nbsp;</p>



<p align=left style='margin-left:72.0pt;text-align:left;text-indent:
-72.0pt'><b><font size="2">Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</font></b></p>

<p align=left style='margin-left:36.0pt;text-align:left;text-indent:
-36.0pt;page-break-after:avoid'><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Financial Statements of Businesses Acquired</u>.</font></p>

<p style='text-indent:0pt'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following financial
statements of Astromec are included in this report:</font></p>

<table border="0" width="100%" id="table1" cellspacing="4" cellpadding="3">
	<tr>
		<td width="824">

<p style='text-indent:0pt'><font size="2">&nbsp; </font></p>

		</td>
		<td><font size="2">&nbsp;</font><u><font size="2">Page</font></u></td>
	</tr>
	<tr>
		<td width="824">

<p style='text-indent:0pt'><font size="2">
<a href="#INDEPENDENT_AUDITORS_REPORT">Independent Auditors' Report</a></font></p>
		</td>
		<td><font size="2">F-1</font></td>
	</tr>
	<tr>
		<td width="824">

<p align=left style='text-align:left;text-indent:0pt'><font size="2">
<a href="#BALANCE_SHEET_">Balance Sheet as
of December 31, 2005</a></font></p></td>
		<td><font size="2">F-2</font></td>
	</tr>
	<tr>
		<td width="824">

<p style='margin-left:16.5pt;text-indent:-16.5pt'><font size="2">
<a href="#STATEMENT_OF_OPERATIONS_AND_ACCUMULATED_DEFICIT_">Statement of
Operations and Accumulated Deficit for the Year Ended December 31, 2005</a></font></p>
		</td>
		<td><font size="2">F-3</font></td>
	</tr>
	<tr>
		<td width="824">

<p style='margin-left:16.5pt;text-indent:-16.5pt'><font size="2">
<a href="#STATEMENT_OF_CASH_FLOWS_">Statement of Cash
Flows for the Year Ended December 31, 2005</a></font></p></td>
		<td><font size="2">F-4</font></td>
	</tr>
	<tr>
		<td width="824"><font size="2">
		<a href="#NOTES_TO_FINANCIAL_STATEMENTS_">Notes to Financial Statements</a></font></td>
		<td><font size="2">F-5-9</font></td>
	</tr>
	<tr>
		<td>

<p align=left style='margin-top:12.0pt;margin-right:0pt;
margin-bottom:0pt;margin-left:108.0pt;margin-bottom:.0001pt;text-align:left;
text-indent:-108.0pt'><font size="2">&nbsp;</font></p></td>
		<td>&nbsp;</td>
	</tr>
	<tr>
		<td width="824">



<p align=left style='margin-left:36.0pt;text-align:left;text-indent:
-36.0pt;page-break-after:avoid'><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Pro-Forma Financial Statements</u>.</font></p>

		</td>
		<td>&nbsp;</td>
	</tr>
	<tr>
		<td width="824">

<p style='text-indent:0pt'><font size="2">&nbsp;&nbsp; </font></p>

		</td>
		<td> <u><font size="2">Page</font></u></td>
	</tr>
	<tr>
		<td width="824">

<p align=left style='margin-left:38.5pt;text-align:left;text-indent:
-38.5pt'><font size="2">
<a href="#Unaudited_Pro_Forma_Condensed_Consolidated_Balance_Sheet_as_of_">Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2005</a></font></p>
		</td>
		<td><font size="2">F-10</font></td>
	</tr>
	<tr>
		<td width="824">

<p align=left style='margin-left:38.5pt;text-align:left;text-indent:
-38.5pt'><font size="2">
<a href="#Pro_Forma_Condensed_Consolidated_Statements_of_Operations_">Pro Forma Condensed Consolidated Statement of Operations for<br>
the Year Ended June 30, 2005</a></font></p></td>
		<td><font size="2">F-11</font></td>
	</tr>
	<tr>
		<td width="824">

<p align=left style='margin-left:38.5pt;text-align:left;text-indent:
-38.5pt'><font size="2">
<a href="#Pro_Forma_Condensed_Consolidated_Statement_of_Operations_">Pro Forma Condensed Consolidated Statement of Operations for<br>
the Six Months Ended December 31, 2005</a></font></p></td>
		<td><font size="2">F-12</font></td>
	</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="2">4</font></p>







<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>












</font>












<p><b><font size="2"><a name="INDEPENDENT_AUDITORS_REPORT">INDEPENDENT AUDITORS'
REPORT</a></font></b></p>







<p><font size="2">To the Board of
Directors<br>
Astromec, Inc.</font></p>



<p align="justify"><font size="2">We have audited the accompanying balance sheet of Astromec,
Inc. as of December 31, 2005, and the related statements of operations and
accumulated deficit, and cash flows for the year then ended.&nbsp; These financial
statements are the responsibility of the Company's management.&nbsp; Our responsibility
is to express an opinion on these financial statements based on our audit.</font></p>



<p align="justify"><font size="2">We conducted our audits in accordance with auditing
standards generally accepted in the United States of America.&nbsp; Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.&nbsp; An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting.&nbsp; Accordingly, we express
no such opinion.&nbsp; An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.&nbsp; An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.&nbsp; We believe that our audit provides a reasonable basis
for our opinion.</font></p>



<p align="justify"><font size="2">In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of Astromec,
Inc. as of December 31, 2005, and the results of its operations and cash flows
for the year ended December 31, 2005, in conformity with accounting principles
generally accepted in the United States of America.</font></p>











<p>&nbsp;</p>
<p><font size="2">/s/ Moss Adams LLP</font></p>
<p><font size="2">Moss Adams LLP</font></p>
<p>&nbsp;</p>
<p><font size="2">Los Angeles, California<br>
March 10, 2006</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font size="2">&nbsp;</font></p>
<p>&nbsp;</p>
<p align="center"><font size="2">F-1</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>








</font>








<p>&nbsp;</p>





<p align=center style='text-align:center'><b><font size="2">ASTROMEC, INC.</font></b></p>



<p align=center style='text-align:center'><b><font size="2">
<a name="BALANCE_SHEET_">BALANCE SHEET</a></font></b></p>



<p align=center style='text-align:center'><font size="2">December&nbsp;31,&nbsp;2005</font></p>



<p align=center style='text-align:center'><font size="2">ASSETS</font></p>



<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
	<tr>
		<td valign=bottom style='width:972px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p><font size="2">CURRENT ASSETS</font></p></td>
		<td valign=bottom style='width:6px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td width=127 valign=bottom style='width:95.45pt;padding:0pt 5.4pt 0pt 5.4pt'>
		</td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Cash</font></p></td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
		<font size="2">$</font></td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,841&nbsp;</font></p>
		</td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Accounts
  receivable</font></p></td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
		<p><font size="2">340,853&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Inventories,
  net</font></p></td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-bottom-style:none; border-bottom-width:medium' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-bottom-style:none; border-bottom-width:medium' align="right">
		<p><font size="2">567,604&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses</font></td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">&nbsp;</td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">
		<font size="2">8,187&nbsp;</font></td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; border-bottom-style:none; border-bottom-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
	</tr>
	<tr>
		<td valign=bottom style='border-style:none; border-width:medium; width:972px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL
  CURRENT ASSETS</font></td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">&nbsp;</td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">
		<font size="2">927,485&nbsp;</font></td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">PROPERTY
  AND EQUIPMENT, net</font></td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">&nbsp;</td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">
		<font size="2">88,865&nbsp;</font></td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">OTHER
  ASSETS</font></td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">&nbsp;</td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">
		<font size="2">1,199&nbsp;</font></td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
	</tr>
	<tr>
		<td valign=bottom style='width:972px;border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL
  ASSETS</font></td>
		<td valign=bottom style='border-bottom:3px double #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">
		<font size="2">$</font></td>
		<td valign=bottom style='border-bottom:3px double #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,017,549&nbsp;</font></td>
	</tr>
</table>



<p align=center style='text-align:center'><font size="2">LIABILITIES AND
STOCKHOLDERS'DEFICIT</font></p>



<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p><font size="2">CURRENT
  LIABILITIES</font></p></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Accounts
  payable</font></p></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
		<font size="2">$</font></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 245,584&nbsp;</font></p>
		</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Accrued
  expenses</font></p></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-bottom-style:none; border-bottom-width:medium' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-bottom-style:none; border-bottom-width:medium' align="right" width="141">
		<p><font size="2">57,661&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-right-style:none; border-right-width:medium' height="20">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
  rent</font></td>
		<td valign=top style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right" height="20">&nbsp;</td>
		<td valign=top style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right" height="20" width="141">
		<font size="2">860,000&nbsp;</font></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-top-style:none; border-top-width:medium' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-top-style:none; border-top-width:medium' align="right" width="141">
		</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Total
  current liabilities</font></p></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<p><font size="2">1,163,245&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">&nbsp;</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-left:18.0pt'><font size="2">Notes
  payable to stockholder</font></p></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<p><font size="2">3,077,105&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
  interest payable to stockholder</font></td>
		<td valign=top style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<font size="2">3,796,667&nbsp;</font></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">&nbsp;</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL
  LIABILITIES</font></td>
		<td valign=top style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<font size="2">8,037,017&nbsp;</font></td>
	</tr>
	<tr style='height:31.35pt'>
		<td valign=top style='width:1050px;height:31.35pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-top:12.0pt'><b><u><font size="2">S T O C K H O L D E R S'&nbsp; DEFICIT</font></u></b></p>
		</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p style='margin-top:12.0pt'><font size="2">CAPITAL
  CONTRIBUTED</font></p></td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p align=left style='margin-left:18.0pt;text-align:left'><font size="2">Common stock, $0.20 par value;&nbsp; 5,000,000 shares
  authorized;<br>5,000,000 shares issued, 4,900,000 outstanding</font></p></td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<p><font size="2">980,000&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<p align=left style='margin-left:18.0pt;text-align:left'><font size="2">Preferred stock, $10.00 par value; 100,000 shares
  authorized;<br>100,000 shares issued and outstanding</font></p></td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<p><font size="2">1,000,000&nbsp;</font></p></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">&nbsp;</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">ACCUMULATED
  DEFICIT</font></td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<font size="2">(8,999,468)</font></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">&nbsp;</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL
  STOCKHOLDERS' DEFICIT</font></td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right" width="141">
		<font size="2">(7,019,468)</font></td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">&nbsp;</td>
		<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-bottom-style:none; border-bottom-width:medium' align="right" width="141">&nbsp;</td>
	</tr>
	<tr>
		<td valign=top style='width:1050px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL
  LIABILITIES AND STOCKHOLDERS' DEFICIT</font></td>
		<td valign=bottom style='border-bottom:3px double #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-right-style:none; border-right-width:medium' align="right">
		<font size="2">$</font></td>
		<td valign=bottom style='border-bottom:3px double #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium' align="right" width="141">
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,017,549&nbsp;</font></td>
	</tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
  <p align=center style='text-align:center'><font size="2">See Notes to Financial
  Statements</font></p>

  <p align=center style='text-align:center'><font size="2">F-2</font></p>
  <p>&nbsp;</p>
<p>&nbsp;</p>
<hr size=2 width="100%" noshade color=navy align=center><font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p>&nbsp;</p>





<p style='margin-top:0pt' align="center"><b><font size="2">ASTROMEC,
INC.</font></b></p>





<p align=center style='text-align:center'><b><font size="2">
<a name="STATEMENT_OF_OPERATIONS_AND_ACCUMULATED_DEFICIT_">STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT</a></font></b></p>



<p align=center style='text-align:center'><font size="2">Year Ended December 31, 2005</font></p>





<div align="left">





<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:12.0pt'><font size="2">NET
  SALES</font></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">$</font></td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p style='margin-top:12.0pt'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,661,618&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">COST
  OF GOODS SOLD</font></td>
  <td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">1,940,675&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GROSS
  PROFIT</font></td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">720,943&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">OPERATING
  EXPENSES</font></td>
  <td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">609,987&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OPERATING
  INCOME</font></td>
  <td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">110,956&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">OTHER
  EXPENSES</font></td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Interest
  expense</font></td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">258,315&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL
  OTHER EXPENSES</font></td>
  <td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">258,315&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:12.0pt'><font size="2">LOSS
  BEFORE PROVISION FOR INCOME TAX</font></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p style='margin-top:12.0pt'><font size="2">(147,359)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">PROVISION
  FOR INCOME TAX</font></td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;- &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:12.0pt'><font size="2">NET
  LOSS</font></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p style='margin-top:12.0pt'><font size="2">(147,359)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">ACCUMULATED
  DEFICIT, BEGINNING OF YEAR</font></td>
  <td valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='border-bottom:1px solid #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">(8,852,109)</font></td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
  <td width=144 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:1048px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  <font size="2">ACCUMULATED
  DEFICIT, END OF YEAR</font></td>
  <td valign=bottom style='border-bottom:3px double #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  <font size="2">$</font></td>
  <td width=144 valign=bottom style='border-bottom:3px double #000000; padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8,999,468)</font></td>
 </tr>
 </table>





</div>





<p align=center style='text-align:center'><font size="2">See Notes to Financial Statements</font></p>
<p align=center style='text-align:center'><font size="2">F-3</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<b><font size="2"><br clear=all style='page-break-before:always'>
</font>
</b>







<p align=center style='text-align:center'><b><font size="2">ASTROMEC, INC.</font></b></p>



<p align=center style='text-align:center'><b><font size="2">
<a name="STATEMENT_OF_CASH_FLOWS_">STATEMENT OF CASH FLOWS</a></font></b></p>



<p align=center style='text-align:center'><font size="2">Year Ended December 31, 2005</font></p>





<div align="left">





<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p><b><font size="2">CASH FLOWS FROM
  OPERATING ACTIVITIES</font></b></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:18.0pt'><font size="2">Net
  loss</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align="right"><font size="2">$</font></td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (147,359)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:27.0pt;text-align:left;
  text-indent:-9.0pt'><font size="2">Adjustments to reconcile
  net loss to net cash<br>
  flows from operating activities:</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Depreciation
  and amortization</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">34,829&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	Increase in inventory reserve</font></td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">91,675&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:18.0pt'><font size="2">Decrease
  (increase) in operating assets and liabilities</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Accounts
  receivable</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">6,113&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Inventories</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">(164,178)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Prepaid
  expenses</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">(449)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Accounts
  payable</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">(12,312)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Accrued
  expenses</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">(21,777)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Accrued
  rent</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">60,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:36.0pt'><font size="2">Accrued
  interest payable to stockholder</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p><font size="2">258,315&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='border-bottom:1px solid #000000; width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='border-bottom:1px solid #000000; width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET
  CASH FLOWS USED IN OPERATING ACTIVITIES</font></td>
  <td valign=top style='border-bottom:1px solid #000000; width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='border-bottom:1px solid #000000; width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">104,857&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:12.0pt'><b><font size="2">CASH
  FLOWS FROM INVESTING ACTIVITIES</font></b></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Purchase
  of property and equipment</font></td>
  <td valign=top style='border-bottom:1px solid #000000; width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='border-bottom:1px solid #000000; width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  <font size="2">(4,618)</font></td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:12.0pt'><b><font size="2">CASH
  FLOWS FROM FINANCING ACTIVITIES</font></b></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Principal
  repayment on note payable to stockholder</font></td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">

  <font size="2">(161,665)</font></td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-left:18.0pt'>&nbsp;</p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p style='margin-top:12.0pt'><font size="2">NET
  DECREASE IN CASH</font></p>
  </td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <p style='margin-top:12.0pt'><font size="2">(61,426)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">CASH,
  BEGINNING OF YEAR</font></td>
  <td valign=top style='border-bottom:1px solid #000000; width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='border-bottom:1px solid #000000; width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">72,267&nbsp;</font></td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:1046px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <font size="2">CASH,
  END OF YEAR</font></td>
  <td valign=top style='border-bottom:3px double #000000; width:7px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p align="right"><font size="2">$</font></td>
  <td valign=top style='border-bottom:3px double #000000; width:146px;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt' align="right">
  <font size="2">10,841&nbsp;</font></td>
 </tr>
 </table>





</div>





<p align=center style='text-align:center'><font size="2">See Notes to Financial Statements</font></p>
<p align=center style='text-align:center'><font size="2">F-4</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=782
 style='width:586.8pt;border-collapse:collapse'>
 <tr>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<b><font size="2"><br clear=all style='page-break-before:always'>
</font>
</b>







<p align=center style='text-align:center'><font size="2">ASTROMEC, INC.</font></p>

<p align="center"><font size="2"><a name="NOTES_TO_FINANCIAL_STATEMENTS_">NOTES TO FINANCIAL STATEMENTS</a></font></p>

<p><b><font size="2">Note 1 - Nature of Business</font></b></p>

<p style='margin-top:13.5pt;text-autospace:none' align="justify"><font size="2">Astromec, Inc.
(the Company) was formed in 1967 to design and build electric motors and
accessories for military and aerospace customers. The Company designs and manufactures
fractional horsepower, direct current (DC) and alternating current (AC) motors.
The Company is located in Carson City, Nevada and operates as a subsidiary of
MD Glover, Inc. </font> </p>

<p style='margin-top:13.5pt;text-autospace:none' align="justify"><font size="2">On January 5,
2006, Pro-Dex Astromec, Inc. (the Subsidiary), a wholly-owned subsidiary of
Pro-Dex, Inc., entered into an Asset Purchase Agreement with Astromec, Inc.
whereby the Subsidiary purchased substantially all of the assets related to the
Company. </font> </p>

<p align="justify"><b><font size="2">Note 2 - Summary of
Significant Accounting Policies</font></b></p>



<p align="justify"><b><font size="2">Basis of Presentation</font></b></p>

<p style='text-align:justify'><font size="2">The
accompanying financial statements have been prepared in accordance with
accounting principals&nbsp;&nbsp; generally accepted in the United States of America.
</font> </p>

<p align="justify"><b><font size="2">Revenue Recognition </font> </b></p>

<p style='text-align:justify'><font size="2">Revenue
on product sales is recognized upon shipment to the customer based on its terms
of FOB shipping point, where the risk of loss and title transfer to the
customer.&nbsp; We record revenue when all of the following exist; persuasive
evidence that a sale arrangement exists, delivery of the product has occurred,
the price is fixed or determinable, and payment is reasonably assured.&nbsp; Revenues include product sales and shipping
revenues, if any, net of estimated returns and discounts based upon
management's estimates and the Company's historical experience.&nbsp; The
Company recognizes shipping cost, incurred as a part of the cost of sales.</font></p>

<p align="justify"><b><font size="2">Accounts Receivable </font> </b></p>

<p align="justify"><font size="2">Trade receivables are carried at original invoice amount
less an estimate made for doubtful accounts based on a review of all
outstanding amounts on a monthly basis.&nbsp; Management determines the
allowance for doubtful accounts by identifying troubled accounts and using
historical experience applied to an aging of accounts.&nbsp; Trade receivables
are written off when deemed uncollectable.&nbsp; Recoveries of trade
receivables previously written off are offset against the allowance when
received. At December 31, 2005, the Company has recorded no allowance for
doubtful accounts.</font></p>
<p align="justify">&nbsp;</p>
<p align="justify">&nbsp;</p>
<p align="justify">&nbsp;</p>
<p align="center"><font size="2">F-5</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr style='height:16.3pt'>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt;
  height:16.3pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt;
  height:16.3pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt;
  height:16.3pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p>&nbsp;</p>



<p style='text-align:justify'><b><font size="2">Inventories</font></b></p>

<p align="justify"><font size="2">Inventories are stated at the lower of cost (the first-in,
first-out method) or market net of a reserve for slow moving items to reflect a
reduced marketability for the item.&nbsp; The reserve is calculated by comparing the
quantity of the item on hand with our prior 12-month usage history.&nbsp; If
inventory on hand for a specific part exceeds an estimated 24 months of usage,
between 20% and 100% of its value may be included in the inventory reserve.&nbsp;
Inventories consist of the following at December 31, 2005: </font> </p>



<div align=center>

<table class=MsoNormalTable border=0 cellpadding=0 width=393
 style='width:600px;margin-left:0pt;border-collapse:collapse'>
 <tr>
  <td valign=top style='width:313px;border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding:0pt; '>
  <p><font size="2">Raw materials and components</font></p>
  </td>
  <td valign=top style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding:0pt; ' align="right">
  <p align=right style='margin-right:4.5pt;text-align:right'><font size="2">$533,033&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:313px;border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding:0pt; '>
  &nbsp;</td>
  <td valign=top style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding:0pt; ' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  <p><font size="2">Work in process </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  <p align=right style='margin-right:4.5pt;text-align:right'><font size="2">131,245&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  &nbsp;</td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  <p><font size="2">Finished goods </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  <p align=right style='margin-right:4.5pt;text-align:right'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp; &nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  &nbsp;</td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  <p align=right style='margin-right:4.5pt;text-align:right'><font size="2">664,278</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  &nbsp;</td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  <p><font size="2">Reserve for slow moving items </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  <p align=right style='margin-right:4.5pt;text-align:right'><u><font size="2">(96,674)
  </font>
  </u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:1.0pt solid windowtext;
  padding:0pt; '>
  &nbsp;</td>
  <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; ' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:313px;border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:0pt; '>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total inventories, net </font> </p>
  </td>
  <td valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:0pt; ' align="right">
  <p align=right style='margin-right:4.5pt;text-align:right'><u><font size="2">$567,604
  </font>
  </u></p>
  </td>
 </tr>
</table>

</div>

<p><b><font size="2">Property and Equipment</font></b><font size="2"> </font> </p>

<p><font size="2">Property and Equipment are recorded at cost and consist of
the following as of December 31, 2005: </font> </p>

<div align=center>

<table class=MsoNormalTable border=0 cellpadding=0 width=400
 style='width:600px;border-collapse:collapse'>
 <tr>
  <td valign=bottom style='width:313px;border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding:0pt; '>
  <p><font size="2">Equipment </font> </p>
  </td>
  <td valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding:0pt; '>
  <p align=right style='margin-right:4.5pt;text-align:right'><font size="2">$820,692&nbsp;
  </font>
  </p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:313px;border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding:0pt; '>
  &nbsp;</td>
  <td valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding:0pt; '>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:
  1.0pt solid windowtext;padding:0pt; '>
  <p><font size="2">Leasehold improvements</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; '>
  <p align=right style='margin-right:4.5pt;text-align:right'><u><font size="2">&nbsp;&nbsp;&nbsp;63,572&nbsp;&nbsp;
  </font>
  </u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:
  1.0pt solid windowtext;padding:0pt; '>
  &nbsp;</td>
  <td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; '>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:
  1.0pt solid windowtext;padding:0pt; '>
  <p><font size="2">Total cost </font> </p>
  </td>
  <td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; '>
  <p align=right style='margin-right:4.5pt;text-align:right'><font size="2">$884,264
  &nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:
  1.0pt solid windowtext;padding:0pt; '>

  <font size="2">&nbsp;</font></td>
  <td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; '>

  </td>
 </tr>
 <tr>
  <td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:
  1.0pt solid windowtext;padding:0pt; '>
  <p><font size="2">Accumulated depreciation and amortization</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; '>
  <p align=right style='margin-right:3.5pt;text-align:right'><u><font size="2">(795,399)&nbsp;
  </font>
  </u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; width:313px;border-left:
  1.0pt solid windowtext;padding:0pt; '>
  &nbsp;</td>
  <td valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:0pt; '>
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=bottom style='width:313px;border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:0pt; '>
  <p><font size="2">Total property and equipment net </font> </p>
  </td>
  <td valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:0pt; '>
  <p align=right style='margin-right:3.5pt;text-align:right'><u><font size="2">$&nbsp;
  88,865&nbsp; </font> </u></p>
  </td>
 </tr>
</table>

</div>

<p align="justify"><font size="2">Depreciation and amortization is provided using the
straight-line method over the estimated useful lives of the assets as follows:
equipment -- 3-10 years; leasehold improvements are amortized over the shorter
of the term of the lease or their estimated useful lives. Depreciation and amortization expense was
$34,829 for the year ended December 31, 2005.</font></p>

<p style='text-align:justify'><b><font size="2">Income
Taxes</font></b></p>

<p align="justify"><font size="2">The
Company accounts for income taxes using the asset and liability method.
Deferred income taxes are recognized based on the differences between financial
statement and income tax bases of assets and liabilities using the enacted
statutory rates in effect for the year in which the differences are expected to
reverse.&nbsp; Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.&nbsp; The provision for income
taxes represents the tax payable for the period and the change during the
period in deferred tax assets and liabilities.&nbsp; The Company's net income or
loss is reported by the parent company on a consolidated basis for federal
income tax purposes.&nbsp; Under the provisions of SFAS No. 109, the Company is
required to record a provision for income taxes even if the parent Company does
not allocate such items.</font></p>

<p style='text-align:center'><b><font size="2">&nbsp;</font></b><font size="2">F-6</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=782
 style='width:586.8pt;border-collapse:collapse'>
 <tr>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p style='text-align:justify'><b><font size="2">Use
of Estimates</font></b></p>

<p style='text-align:justify'><font size="2">The
preparation of financial statements in accordance with accounting principles
generally accepted in the U.S. requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. </font> </p>

<p style='text-align:justify'><font size="2">The
Company's operations are affected by numerous factors including market
acceptance, changes in technologies and new laws and government regulations and
policies. The Company cannot predict what impact, if any, the occurrence of
these or other events might have on the Company's operations. Significant
estimates and assumptions made by management are used for, but not limited to,
the allowance for doubtful accounts, the reserve for slow moving or obsolete
inventories, the carrying value of long-lived assets, and the recoverability of
deferred tax assets.</font></p>

<p><b><font size="2">Concentration of
credit risk</font></b><font size="2"> </font> </p>



<p align="justify"><font size="2">Financial instruments,
which can potentially subject the Company to credit risk, consist principally
of accounts receivable and cash.&nbsp; The Company performs ongoing credit
evaluations of its customers and generally does not require collateral from them.&nbsp;
Management does not believe an allowance for accounts receivable is necessary,
as the company has no history of credit losses. The Company places its cash
with one major financial institution in the United States, which is insured by
the Federal Deposit Insurance Corporation (FDIC) up to $100,000. </font> </p>

<p style='margin-left:0pt;text-indent:0pt'><b><font size="2">Note 3
-Related Party Transactions</font></b></p>



<p align="justify"><font size="2">The Company engages in transactions
with related parties.&nbsp; Due to the nature of these entities' relationship, the
Company's financial position and operating results as of the year ended
December 31, 2005 are different from those that would have been obtained if the
entities were autonomous.</font></p>



<p align="justify"><font size="2">The Company leases its office and
warehouse facility from M.D. Glover Inc. for a below market rate rent of $5,000
per month.&nbsp; The rent is accrued but not paid by the Company.&nbsp; At December 31, 2005, $860,000 of accrued rent was payable to M.D. Glover, Inc.&nbsp;
</font> </p>



<p align="justify"><font size="2">The Company borrows funds from M.D.
Glover Inc. as needed.&nbsp; At December 31, 2005 approximately $3,077,105 was due
to M.D. Glover, Inc. and was included as note payable to stockholder on the
accompanying balance sheet.&nbsp; The advances bear interest at a rate of 8% to 9%
and are due on demand.&nbsp; Interest was accrued and unpaid in the amount of
$3,796,667 at December 31, 2005.</font></p>



<p align="justify"><b><font size="2">Note 4 - Commitments and Contingencies </font> </b></p>

<p align="justify"><font size="2">The Company leases its
facilities from a related entity (Note 3) under a month-to-month operating
lease agreement.&nbsp; The agreement requires a minimum monthly lease payment of
approximately $5,000 and expires in July 2009, with an option to extend
thereafter.&nbsp; In addition, the Company also leases equipment under various
noncancelable leases for an aggregate monthly rental of approximately $1,000,
with expiration dates through April 2006.&nbsp; Rent expense for the year
ended December 31, 2005 was approximately $61,600,
all of which is payable to a related party.&nbsp; </font> </p>



<p align="justify"><font size="2">At December 31, 2005, future minimum lease payments due
under noncancelable operating leases was $30,400, all of which is payable in
2006. </font> </p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="2">F-7</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=782
 style='width:586.8pt;border-collapse:collapse'>
 <tr>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p><font size="2">The Company's manufacture and distribution of certain
products involves a risk of legal action, and, from time to time, it is named
as defendants in lawsuits. While the Company's management believes that these
matters will not have a material adverse impact on its financial condition, it
is not reasonably possible to estimate the awards or damages, or the range of
awards or damages, if any, it might incur in connection with such litigation.</font></p>



<p><b><font size="2">Note 5 - Income Taxes </font> </b></p>

<p align="justify"><font size="2">For the year ended December 31, 2005, the Company incurred net operating losses and, accordingly, no
provision for income taxes has been recorded.&nbsp; In addition, no benefit for
income taxes has been recorded due to the uncertainty of the realization of any
tax assets.&nbsp; The Company had net deferred tax assets of approximately
$1,952,635 at December 31, 2005 consisting of net operating loss carryforwards
and timing differences related primarily to the deductibility of allowances and
accrued expenses.&nbsp; As of December 31, 2005 the Company provided a 100%
valuation allowance for the net deferred tax assets as management could not
determine that it was more likely than not that the benefits of the net
deferred tax assets would be realized. &nbsp;At December 31, 2005, the Company had approximately $1,070,000 of federal net operating
losses. The net operating loss carryforwards, if not utilized, will begin to
expire in 2012.</font></p>

<p><b><font size="2">Note 6 - Shareholders' Equity&nbsp; </font> </b></p>

<p style='text-indent:36.0pt'><b><font size="2">Common Stock </font> </b></p>

<p align="justify"><font size="2">The Company had 5,000,000 shares
of common stock authorized with a par value of $0.20 each, amounting in
aggregate to $1,000,000.&nbsp; As of December 31, 2005 4,900,000 shares were
outstanding.&nbsp; </font> </p>

<p style='text-indent:36.0pt'><b><font size="2">Preferred Shares </font> </b></p>

<p align="justify"><font size="2">The Company had 100,000 shares of
preferred stock authorized with a par value of $10.00 each, amounting in
aggregate to $1,000,000.&nbsp; As of December 31, 2005 100,000 shares were
outstanding.&nbsp; </font> </p>

<p><b><font size="2">Note 7 - Major Customers</font></b></p>

<p align="justify"><font size="2">The Company had sales to three major customers that
represented 66% of total revenues in the year ended December 31, 2005.&nbsp; Net sales to these customers in 2005 amounted to $1,762,592. Included in
accounts receivable at December 31, 2005 was $263,400 due from these major
customers.&nbsp;</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="2">F-8</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=782
 style='width:586.8pt;border-collapse:collapse'>
 <tr>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p>&nbsp;</p>



<p align=left style='text-align:left;text-indent:0pt;page-break-after:
avoid'><font size="2">(b)</font><b><font size="2"><u> Unaudited Pro Forma Financial Information</u>.</font></b></p>

<p style='margin-left:38.5pt;text-indent:0pt' align="justify"><font size="2">As described in Item
2.01 of this report, effective as of January 5, 2006, Pro-Dex acquired the
assets and certain operating liabilities of Astromec, Inc. and real property,
buidings and improvements from the majority shareholder of Astromec, Inc.
(&quot;acquisition of Astromec&quot;)&nbsp; The accompanying unaudited pro forma condensed
consolidated balance sheet as of December 31, 2005 and the unaudited pro forma
condensed consolidated statements of operations for the year ended June 30,
2005 and the six month period ended December 31, 2005 are set forth herein to
give effect to the acquisition of Astromec as if the acquisition had been
consummated as of December 31, 2005 for the consolidated balance sheet
presentation and at the beginning of each of the periods presented for the
purposes of the consolidated statement of operations. </font> </p>

<p style='margin-left:38.5pt;text-indent:0pt' align="justify"><font size="2">The unaudited pro
forma condensed consolidated balance sheet and unaudited pro forma condensed
consolidated statements of operations do not reflect any potential cost savings
that may be realized following the acquisition. The pro forma adjustments and
assumptions are based on estimates, evaluations and other data currently
available and, in Pro-Dex's opinion, provide a reasonable basis for the fair
presentation of the estimated effects directly attributable to the acquisition
and related transactions. The unaudited pro forma condensed consolidated
balance sheet and unaudited pro forma condensed consolidated statements of
operations are provided for illustrative purposes only and are not necessarily
indicative of what the consolidated results of operations or financial position
would actually have been had the acquisitions occurred at the dates noted
above, nor do they represent a forecast of the consolidated results of
operations or financial position for any future period or date.</font></p>

<p style='margin-left:38.5pt;text-indent:0pt' align="justify"><font size="2">All information
contained herein should be read in conjunction with Pro-Dex's annual report on Form
10-KSB for the year ended June 30, 2005, its quarterly report on Form 10-QSB
for the six months ended December 31, 2005, the financial statements and notes
thereto of Astromec, Inc. included in Item 9.01(a) of this Form 8-K and the
notes to the unaudited pro forma financial information included herein. The
following unaudited pro forma financial information is included in this report:</font></p>
<p style='margin-left:38.5pt;text-indent:0pt'>&nbsp;</p>
<p style='margin-left:38.5pt;text-indent:0pt'>&nbsp;</p>
<p style='text-indent:0pt' align="center"><font size="2">F-9</font></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=782
 style='width:586.8pt;border-collapse:collapse'>
 <tr>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=271 valign=bottom style='width:203.4pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>








</font>








<p align=center style='text-align:center;text-autospace:none'><b><font size="2">PRO-DEX, INC. AND SUBSIDIARIES<br>
<a name="Unaudited_Pro_Forma_Condensed_Consolidated_Balance_Sheet_as_of_">Unaudited Pro Forma Condensed Consolidated
Balance Sheet as of</a><br>
December 31, 2005<br>
(in thousands)</font></b></p>
<div align="left">





<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="740">
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><b><font size="2">Assets&nbsp; </font> </b></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp; Pro Forma&nbsp;
	</font> </b></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style='height:9.7pt'>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Pro-Dex</font></u></b></p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Astromec</font></u></b></p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Adjustments&nbsp;
	</font> </u></b></p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Totals</font></u></b></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Cash&nbsp; </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp; 2,177
	</font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11
	</font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2,150)
	</font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align="center"><font size="2">(c,d)</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38
	</font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Accounts
  receivable</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,643 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">341 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,984 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Inventories&nbsp; </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,575 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">568 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">4,143 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Deferred tax
  assets </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">525 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-- </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">525 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Prepaids and
  other current assets </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">224 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">8 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">232 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Total current
  assets</font></p>
  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">9,144 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">928 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(2,150)</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">7,922 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Net fixed
  assets</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,225 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">89 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,410</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:center'><font size="2">(b,d)</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,724 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Goodwill </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,110 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,775</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:center'><font size="2">(b)</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,885 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Deferred tax
  assets </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">481 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-- </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">481 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Other assets </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,557 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,558 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Total other
  assets&nbsp; </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,148 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,775</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">4,924 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.7pt'>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p><font size="2">Total assets&nbsp; </font> </p>
  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp; 13,517
	</font> </p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp; 1,018
	</font> </p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,035</font></p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp; 16,570
	</font> </p>
  </td>
 </tr>
</table>

</div>

<p align=left style='text-align:left'><u><font size="2">&nbsp;</font></u></p>

<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0 width=626
 style='width:740px;border-collapse:collapse'>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><b><font size="2">Liabilities and Stockholders' Equity&nbsp;
	</font> </b></p>
  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">Pro Forma</font></b></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style='height:9.7pt'>
  <td width=289 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=79 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Pro-Dex</font></u></b></p>
  </td>
  <td valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td width=54 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Astromec</font></u></b></p>
  </td>
  <td width=8 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td width=118 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Adjustments</font></u></b></p>
  </td>
  <td width=38 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  &nbsp;</td>
  <td width=84 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><u><font size="2">Totals</font></u></b></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Accounts payable</font></p>
  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp; 855
	</font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 245
	</font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;1,100
	</font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Rent payable
  to stockholder</font></p>
  </td>
  <td width=79 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">860</font></p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(860)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:center'><font size="2">(a)</font></p>
  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Deferred
  payable (patent)</font></p>
  </td>
  <td width=79 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">71</font></p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">71</font></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Accrued expenses </font> </p>
  </td>
  <td width=79 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">531 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="left">
  <p align=right style='text-align:right'><font size="2">58 </font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;100</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align="center"><font size="2">(c)</font></p>
  </td>
  <td width=84 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">689 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Total current liabilities&nbsp;
	</font> </p>
  </td>
  <td width=79 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,457 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,163 </font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(760)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,860 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Notes payable
  to stockholder </font> </p>
  </td>
  <td width=79 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">- </font> </p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,077</font></p>
  </td>
  <td width=8 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(3,077)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p><font size="2">(a)</font></p>
  </td>
  <td width=84 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">- </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Interest
  payable to stockholder </font> </p>
  </td>
  <td width=79 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">- </font> </p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,797</font></p>
  </td>
  <td width=8 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(3,797)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p><font size="2">(a)</font></p>
  </td>
  <td width=84 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">- </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Note(s)
  payable to bank(s) </font> </p>
  </td>
  <td width=79 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">- </font> </p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td width=8 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,650</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p><font size="2">(c,d)</font></p>
  </td>
  <td width=84 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,650</font></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Long-term
  liabilities (patent deferred payable)</font></p>
  </td>
  <td width=79 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">245</font></p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">245 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Total non-current liabilities&nbsp;
	</font> </p>
  </td>
  <td width=79 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">245</font></p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">6,874 </font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(4,224)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,895 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=79 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Total liabilities&nbsp;
	</font> </p>
  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,702 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">8,037 </font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(4,984)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">4,755 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><b><font size="2">Stockholders' equity</font></b></p>
  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Common stock&nbsp; </font> </p>
  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">16,046 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">980 </font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(980)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p><font size="2">(a)</font></p>
  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">16,046 </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Preferred Stock</font></p>
  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,000</font></p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(1,000)</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p align=left style='text-align:left'><font size="2">(a)</font></p>
  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Accumulated deficit</font></p>
  </td>
  <td width=79 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;(4,231)</font></p>
  </td>
  <td valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(8,999) </font> </p>
  </td>
  <td width=8 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">8,999</font></p>
  </td>
  <td width=38 valign=bottom style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p><font size="2">(a)</font></p>
  </td>
  <td width=84 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(4,231)</font></p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='text-align:left'><font size="2">Total stockholders' equity&nbsp;
	</font> </p>
  </td>
  <td width=79 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">11,815 </font> </p>
  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(7,019) </font> </p>
  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">7,019</font></p>
  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='border:medium none;height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">11,815&nbsp; </font> </p>
  </td>
 </tr>
 <tr style='height:9.1pt'>
  <td width=289 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=79 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=8 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=38 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=top style='height:9.1pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:9.7pt'>
  <td width=289 valign=top style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=left style='margin-left:15.0pt;text-align:left;
  text-indent:-15.0pt'><font size="2">Total
  liabilities and stockholders' equity&nbsp; </font> </p>
  </td>
  <td width=79 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp; 13,517</font></p>
  </td>
  <td valign=bottom style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=54 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp; 1,018</font></p>
  </td>
  <td width=8 valign=bottom style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=118 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,035</font></p>
  </td>
  <td width=38 valign=bottom style='height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td width=84 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.5pt double windowtext; height:9.7pt; padding-left:1.5pt; padding-right:1.5pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp; 16,570</font></p>
  </td>
 </tr>
</table>

</div>

<p align=left style='text-align:left;text-autospace:none'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </u></p>

<p align=left style='text-align:justify;
text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;Liability and equity
not assumed in Asset Purchase Agreement</font></p>

<p align=left style='text-align:justify;
text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;Purchase price
allocation: $2,700&nbsp;purchase price in exchange for $1,018 of
assets and $303 in assumed liabilities for total consideration of $3,003,
resulting in fair market value adjustment in assets of $210 and $1,775 of
goodwill</font></p>

<p align=left style='text-align:justify;
text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(c)&nbsp;&nbsp;&nbsp;&nbsp;Astromec assets
purchased for $2,700; financed with $1,600 in cash, $1,000 debt, and $100
seller financing to be paid within six months of closing, subject to closing
balance sheet adjustments.</font></p>

<p align=left style='text-align:justify;
text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(d)&nbsp;&nbsp;&nbsp;&nbsp;Land and building
purchased for $2,200; financed with $550 in cash and $1,650 debt</font></p>
<p align=left style='margin-left:51.1pt;text-align:left;
text-indent:-18.0pt;text-autospace:none; margin-top:0; margin-bottom:0.001pt'>&nbsp;</p>
<p align=left style='margin-left:51.1pt;text-align:left;
text-indent:-18.0pt;text-autospace:none; margin-top:0; margin-bottom:0.001pt'>&nbsp;</p>
<p align=left style='text-align:center;
text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">F-10</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>




</font>




<p align=center style='text-align:center;text-autospace:none'><b><font size="2">PRO-DEX, INC. AND SUBSIDIARIES<br>
<a name="Pro_Forma_Condensed_Consolidated_Statements_of_Operations_">Pro Forma Condensed Consolidated
Statements of Operations</a><br>
for the Year Ended June 30, 2005<br>
(in thousands, except per share data)</font></b></p>

<p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>





<div align="left">





<table class=MsoNormalTable border=0 cellpadding=0 width=521
 style='width:740px;border-collapse:collapse'>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=bottom style='width:148.5pt;padding:0pt .8pt 0pt 0pt;
  height:12.75pt'>



  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p align=center style='text-align:center'><b><font size="2">Pro Forma</font></b></p>
  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=198 nowrap valign=bottom style='width:148.5pt;padding:0pt .8pt 0pt 0pt;
  height:13.5pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p align=center style='text-align:center'><b><font size="2">Pro-Dex</font></b></p>
  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p align=center style='text-align:center'><b><font size="2">Astromec</font></b></p>
  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p align=center style='text-align:center'><b><font size="2">Adjustments</font></b></p>
  </td>
  <td valign=bottom style='padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:0pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt' align="center">
  <p align=center style='text-align:center'><b><font size="2">Totals</font></b></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=59 nowrap valign=bottom style='width:44.0pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=15 nowrap valign=bottom style='width:11.0pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=66 nowrap valign=bottom style='width:49.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=15 nowrap valign=bottom style='width:11.0pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=88 nowrap valign=bottom style='width:66.0pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=29 nowrap valign=bottom style='width:22.0pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td width=51 nowrap valign=bottom style='width:38.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Sales</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$13,834 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$2,517 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$16,351 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Cost of sales</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">6,754 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,740 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">8</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(c)</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 8,502
	</font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='border:medium none;height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Gross profit</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">7,080 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">777 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(8)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">7,849 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Selling, general &amp;
  administrative</font></p>
  </td>
  <td valign=top style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 3,048
	</font> </p>
  </td>
  <td valign=top style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">243 </font> </p>
  </td>
  <td valign=top style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(c)</font></p>
  </td>
  <td valign=top style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 3,293
	</font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Research and
  development</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,740 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">368 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,108 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Total
  operating expenses</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">4,788 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">611 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">5,401 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Operating
  profit</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,292 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">166 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(10)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,448 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Interest
  income (expense)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">21</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;(266)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">87</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align="center"><font size="2">(a,d)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(158)</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Other, net</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">117</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-&nbsp;&nbsp; </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">117</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Income (loss)
  before income taxes</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding:0pt; height:12.75pt'>
  <p align=right style='text-align:right'><font size="2">2,430 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(100) </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">77</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,407 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Income taxes</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">581 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">- </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(9)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(b)</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 572
	</font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:13.5pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Net income
  (loss)</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$1,849 </font> </p>
  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$(100) </font> </p>
  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$86</font></p>
  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$1,835 </font> </p>
  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:13.5pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Earnings Per
  Share - Basic </font> </p>
  </td>
  <td valign=bottom style='padding:0pt;
  height:12.75pt'>
  <p align=right style='text-align:right'><font size="2">$0.20 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$0.20 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=top style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Earnings Per
  Share - Diluted</font></p>
  </td>
  <td valign=bottom style='padding:0pt;
  height:12.75pt'>
  <p align=right style='text-align:right'><font size="2">$0.19 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$0.19 </font> </p>
  </td>
 </tr>
 <tr style='height:3.35pt'>
  <td width=198 nowrap valign=bottom style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:3.35pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:3.35pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=198 nowrap valign=bottom style='width:148.5pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Shares Outstanding -
  Basic</font></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">9,107 </font> </p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">9,107 </font> </p>
  </td>
 </tr>
 <tr style='height:11.25pt'>
  <td width=198 nowrap valign=bottom style='width:148.5pt;padding:0pt .8pt 0pt .8pt;
  height:11.25pt'>
  <p align=left style='margin-left:22.0pt;text-align:left;
  text-indent:-22.0pt'><font size="2">Shares Outstanding -
  Diluted</font></p>
  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,651
	</font> </p>
  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:11.25pt; padding-left:.8pt; padding-right:.8pt; padding-top:0pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,651
	</font> </p>
  </td>
 </tr>
</table>

</div>

<p align=left style='margin-top:0pt;text-align:left;text-indent:
0pt;page-break-after:avoid'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </u></p>

<p align=left style='margin-top:0;text-align:justify;
text-autospace:none; margin-bottom:0.001pt'><font size="2">(a) Elimination
of interest expense due to stockholder note payable not assumed in Asset
Purchase Agreement</font></p>

<p align=left style='margin-top:0;text-align:justify;text-indent:
0pt;page-break-after:avoid; margin-bottom:0.001pt'><font size="2">(b)
Pro-Forma Tax benefit of 40% applied to pro-forma adjusted loss plus for pro
forma adjustments &nbsp;(($100)+$77 x 40% = ($9))</font></p>

<p align=left style='text-align:justify;text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(c) Additional depreciation of $30 for the
purchased asset allocation and $40 for the building, split 75% to COS and 25% to S, G&amp;A.&nbsp; Rent expense of $5/month or $60/year eliminated; split 75% to COS and 25% to S, G&amp;A</font></p>

<p align=left style='text-align:justify;text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(d) Interest on
debt used to finance purchases at 6.75% x ($1,000 + $1,650) = $179</font></p>
<p align=left style='text-align:left;text-autospace:none; margin-top:0; margin-bottom:0.001pt'>&nbsp;</p>
<p align=left style='text-align:left;text-autospace:none; margin-top:0; margin-bottom:0.001pt'>&nbsp;</p>
<p align=left style='text-align:center;text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">F-11</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center;text-autospace:none'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br
clear=all style='page-break-before:always'>




</font>




<p align=center style='text-align:center;text-autospace:none'><b><font size="2">PRO-DEX, INC. AND SUBSIDIARIES<br>
<a name="Pro_Forma_Condensed_Consolidated_Statement_of_Operations_">Pro Forma Condensed Consolidated Statement
of Operations</a><br>
for the Six Months Ended December 31, 2005<br>
(in thousands, except per share data)</font></b></p>

<p>&nbsp;</p>





<div align="left">





<table class=MsoNormalTable border=0 cellpadding=0 width=540
 style='width:740px;border-collapse:collapse'>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>



  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">Pro Forma</font></b></p>
  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='height:12.75pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p><b><font size="2">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:13.5pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">Pro-Dex</font></b></p>
  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">Astromec</font></b></p>
  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">Adjustments</font></b></p>
  </td>
  <td valign=bottom style='height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; height:13.5pt; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><b><font size="2">Totals</font></b></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Sales</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$7,514 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$1,408 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$8,922 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Cost of sales</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">4,094 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,086
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">4</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(c)</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">5,184 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='border:medium none;
  padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;
  padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Gross profit</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,420 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">322 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(4) </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">3,738 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Selling, general &amp; administrative</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,629
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 158
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(c)</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1,788 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Research and development
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 886
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">148 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">-</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,034
	</font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Total operating expenses</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,515 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">306 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">1 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">2,822 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Operating profit</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">905</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(5) </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">916</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Interest income (expense)</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">43 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(127)&nbsp;&nbsp;
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;38</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(a,d)</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(46) </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Other income, net</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">30 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">30&nbsp;&nbsp; </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='border:medium none;
  padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;
  padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border:medium none;padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Income before income taxes</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">978</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(111)</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">33 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">900</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Income taxes</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 389
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">(31) </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=center style='text-align:center'><font size="2">(b)</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">358 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:13.5pt'>
  <p align=left style='text-align:left'><font size="2">Net (loss) income</font></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp; 589</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp; (111)</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$&nbsp;&nbsp; 64</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:2.25pt double windowtext; padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$ 542</font></p>
  </td>
 </tr>
 <tr style='height:13.5pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:13.5pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Net Income Per Share - Basic
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$0.06</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$0.06</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Net Income Per Share - Diluted</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$0.06</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">$0.05</font></p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Shares Outstanding - Basic</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">9,474 </font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">9,474 </font> </p>
  </td>
 </tr>
 <tr style='height:12.75pt'>
  <td width=211 nowrap valign=bottom style='width:158.3pt;padding:.8pt .8pt 0pt .8pt;
  height:12.75pt'>
  <p align=left style='text-align:left'><font size="2">Shares Outstanding - Diluted</font></p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,045
	</font> </p>
  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>

  </td>
  <td valign=bottom style='padding-left:.8pt; padding-right:.8pt; padding-top:.8pt; padding-bottom:0pt'>
  <p align=right style='text-align:right'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,045
	</font> </p>
  </td>
 </tr>
</table>

</div>

<p align=left style='text-align:left;text-autospace:none'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </u></p>

<p align=left style='margin-top:0;text-align:justify;
text-autospace:none; margin-bottom:0.001pt'><font size="2">(a) Elimination
of interest expense due to stockholder note payable not assumed in Asset
Purchase Agreement</font></p>

<p align=left style='margin-top:0;text-align:justify;text-indent:
0pt;page-break-after:avoid; margin-bottom:0.001pt'><font size="2">(b) Pro-Forma
Tax benefit of 40% applied to pro-forma adjusted loss plus for pro forma
adjustments&nbsp; (($111)+$33 x 40% = ($31))</font></p>

<p align=left style='text-align:justify;text-autospace:none; margin-top:0; margin-bottom:0.001pt'><font size="2">(c) Additional depreciation of $15 for the
purchased asset allocation and $20 for the building, split 75% to COS and 25% to S, G&amp;A.&nbsp; Rent expense of $5/month eliminated; split 75% to COS and 25% to S, G&amp;A</font></p>

<p align=left style='margin-top:0;text-align:justify;text-indent:
0pt;page-break-after:avoid; margin-bottom:0.001pt'><font size="2">(d)
Interest on debt used to finance purchases at 6.75% x ($1,000 + $1,650) =$179
for the year, $89 for the six month period</font></p>
<p align=left style='margin-top:0pt;text-align:left;text-indent:
0pt;page-break-after:avoid'>&nbsp;</p>
<p align=left style='margin-top:0pt;text-align:center;text-indent:
0pt;page-break-after:avoid'><font size="2">F-12</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  <p align=center style='text-align:center'>&nbsp;</p>
  </td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>






</font>






<p>&nbsp;</p>



<p align=left style='text-align:left;text-indent:0pt;page-break-after:
avoid'><font size="2">&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exhibits</u>.</font></p>

<table class=MsoNormalTable border=0 cellpadding=0
 style='margin-left:11.25pt;border-collapse:collapse' width="100%">

  <tr style='page-break-inside:avoid'>
   <td width=63 valign=top style='width:47.55pt;padding:3.6pt 5.75pt 3.6pt 5.75pt'>
   &nbsp;</td>
   <td width=561 valign=top style='width:420.7pt;padding:3.6pt 5.75pt 3.6pt 5.75pt'>
   &nbsp;</td>
  </tr>

  <tr style='page-break-inside:avoid'>
   <td width=63 valign=top style='width:47.55pt;padding:3.6pt 5.75pt 3.6pt 5.75pt'>
   <p style='margin-left:0pt'><u><font size="2">Number</font></u></p>
   </td>
   <td width=561 valign=top style='width:420.7pt;padding:3.6pt 5.75pt 3.6pt 5.75pt'>
   <p style='margin-left:0pt'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</font> <u><font size="2">Description</font></u></p>
   </td>
  </tr>

 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p style='margin-left:0pt'><font size="2">2.1 </font> </p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p align=left style='margin-left:0pt;text-align:left'><font size="2">Asset
  Purchase Agreement, dated January 5, 2006, between Pro-Dex Astromec, Inc.,
  Astromec, Inc., M.D. Glover, Inc., Malcolm D. Glover, Jr., and Malcolm D.
  Glover, Sr.</font><sup><font size="2">(1)</font></sup></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p><font size="2">2.2</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p><font size="2">Purchase and Sale Agreement
  and Escrow Instructions, dated January 3, 2006, between Pro-Dex, Inc. and
  M.D. Glover, Inc.</font><sup><font size="2">(1)</font></sup></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p><font size="2">10.1</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p><font size="2">Term Note, dated January 4, 2006, by Pro-Dex, Inc. in favor of Wells Fargo Bank, National Association.</font><sup><font size="2">(1)</font></sup></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p><font size="2">10.2</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:3.6pt; padding-bottom:3.6pt'>
  <p><font size="2">Loan Agreement, dated January 4, 2006, between Pro-Dex, Inc. and Wells Fargo Bank, National Association.</font><sup><font size="2">(1)</font></sup></p>
  </td>
 </tr>
</table>

<p style='margin-left:36.0pt;text-indent:-36.0pt'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </u></p>

<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:36.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>
<font size="2">(1)&nbsp; Filed as
an exhibit to the Pro-Dex, Inc. Form 8-K filed on January 6, 2005 and incorporated herein by reference.</font></p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:36.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>
&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:36.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>
&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
0pt;margin-left:36.0pt;margin-bottom:.0001pt;text-indent:-36.0pt'>
&nbsp;</p>
<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>








</font>








<p>&nbsp;</p>



<p align="center"><font size="2">SIGNATURE</font></p>



<p align=left style='text-align:justify;line-height:normal; text-indent:36pt'><font size="2">Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></p>

<table border="0" width="100%" id="table2">
	<tr>
		<td valign="top"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Date:&nbsp; March 20, 2006</font></td>
		<td width="924" valign="top">

<p align=left style='text-align:left;
'><font size="2">Pro-Dex, Inc.</font></p>
		<p align=left style='text-align:left;
'><font size="2">
<br>
By: <u>/s/ Jeffrey J. Ritchey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey J. Ritchey, Chief Financial Officer, Secretary and Vice
President</font></p></td>
	</tr>
</table>
<p align=left style='margin-left:216.0pt;text-align:left;
text-indent:-180.0pt'>&nbsp;</p>
<p align=left style='margin-left:216.0pt;text-align:left;
text-indent:-180.0pt'>&nbsp;</p>
<p align=left style='margin-left:216.0pt;text-align:left;
text-indent:-180.0pt'>&nbsp;</p>
<p align=left style='margin-left:216.0pt;text-align:left;
text-indent:-180.0pt'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=624
 style='width:468.0pt;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  &nbsp;</td>
  <td width=120 valign=bottom style='width:90.0pt;padding:0pt 1.8pt 0pt 1.8pt'>
  &nbsp;</td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0pt 1.8pt 0pt 1.8pt'>

  &nbsp;</td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>







<div>

<hr class=msocomoff align=left size=1 width="33%">

</div>

</body>

</html>
[{"type": "8-K", "sequence": "1", "filename": "pdex8k1.htm", "secsgml_size_bytes": 264825}]
{"company-data": {"conformed-name": "PRO DEX INC", "cik": "0000788920", "assigned-sic": "3841", "irs-number": "841261240", "state-of-incorporation": "CO", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-14942", "film-number": "06698933"}, "business-address": {"street1": "MICRO MOTORS, INC.", "street2": "151 EAST COLUMBINE", "city": "SANTA ANA", "state": "CA", "zip": "92707", "phone": "714-241-4411"}, "mail-address": {"street1": "MICRO MOTORS INC.", "street2": "151 EAST COLUMBINE", "city": "SANTA ANA", "state": "CA", "zip": "92707"}}
Pro-Dex, Inc. Form 8-K by www.edgar2.com
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
	(Date of earliest event reported)
January 5, 2006
Pro-Dex,
Inc
(Exact name of registrant as specified
in its charter)
Colorado
(State or other
  jurisdiction
of incorporation)
0-14942
(Commission
File Number)
84-1261240
(IRS Employer
Identification No.)
151 E. Columbine Avenue, Santa Ana, California 92707
(Address of principal executive offices)    
	(Zip Code)
Registrant's telephone number, including area code
714-241-4411
Not Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.       Entry into a
Material Definitive Agreement.
On January 5, 2006, Pro-Dex Astromec,
Inc., a Nevada corporation (the "Subsidiary"), a wholly-owned
subsidiary of Pro-Dex, Inc. (the "Company"), entered into an Asset
Purchase Agreement (the "Asset Purchase Agreement") with Astromec,
Inc., a Nevada corporation ("Astromec") whereby the Subsidiary
purchased from Astromec substantially all of the assets related to Astromec's fractional
horsepower DC motor development and manufacturing business (the
"Assets").  The Subsidiary also assumed certain liabilities of
Astromec as defined in the Asset Purchase Agreement. The Subsidiary was formed
under the laws of the State of Nevada on December 27, 2005.  Since
the Subsidiary is a wholly owned subsidiary of the Company, the financial
investments and transactions of both companies are presented on a consolidated
basis.  M.D. Glover, Inc., a Nevada corporation ("Glover,
Inc."), and Malcolm D. Glover, Jr., as principal shareholders of Astromec,
and Malcolm D. Glover, Sr., as sole shareholder of Glover, Inc., are each party
to the Asset Purchase Agreement with respect to customary and standard
representations and warranties and indemnity obligations of Astromec.
The purchase price for the Assets consisted of $2,700,000 in cash
payable to Astromec, $100,000 of which shall be held back until July 5, 2006 to cover any adjustments in the purchase price that might be required
pursuant to:
a post-closing review of the audited
     balance sheet of Astromec as of January 5, 2006, and/or
any indemnity
     obligations of Astromec under the Asset Purchase Agreement that arise
     prior to or on July 5, 2006, if any.
The
Company paid $1,600,000 of the purchase price out of cash on hand.  The
remaining $1,000,000 was paid with borrowings from Wells Fargo Bank pursuant to
the Loan Agreement and Term Note described in more detail below.
Item 2.01.       Completion of
Acquisition or Disposition of Assets.
As stated above in Item 1.01, on January 5, 2006, the Subsidiary entered into an Asset Purchase Agreement with Astromec, whereby the Subsidiary
purchased substantially all of the assets related to Astromec's fractional
horsepower DC motor development and manufacturing business.  Also as stated
above in Item 1.01, on January 3, 2006, the Company entered into a Purchase and
Sale Agreement and Escrow Instructions with Glover, Inc., whereby pending the
close of escrow, the Company shall purchase real property and an industrial
building and related improvements located in Carson City, Nevada.  The
details of the acquisition of these assets are described in Item 1.01, which is
incorporated in its entirety by this reference into this Item 2.01.
In determining the purchase price for Astromec, the Company
considered the historical and expected earnings and cash flow of Astromec, as
well as the value of companies of a size and in an industry similar to
Astromec, comparable transactions, and the market for such companies
generally.  The purchase price represented a premium of approximately $1,985,000
over the $1,018,000 recorded net worth of the assets assumed from Astromec.  In
determining this premium, the Company considered the synergistic and strategic
advantages provided by having a motor manufacturing assets and the value of the
goodwill, customer relationships and technology of Astromec.  Goodwill
associated with the Astromec acquisition totaled approximately $1,775,000.
2
In connection with the execution of the Asset Purchase Agreement,
on January 3, 2006, the Company entered into a Purchase and Sale Agreement and
Escrow Instructions (the "Real Property Purchase Agreement") with
Glover, Inc., whereby pending the close of escrow, the Company shall purchase
4.4 acres of real property and a 20,000 square foot industrial building and
related improvements located in Carson City, Nevada.  M.D. Glover, Inc.,
the majority shareholder of Astromec, is the current owner of the
property.  The property comprises the facilities where Astromec has conducted
its business prior to the close of the Asset Purchase Agreement, and the
Company currently plans to continue factional horsepower DC motor development
and manufacturing operations at the property.  Upon the close of escrow,
the Company shall pay $2,200,000 for the property subject to further
analysis.  The Company plans to pay $550,000 of the purchase price out of
cash on hand and anticipates that the remaining $1,650,000 will be paid for out
of proceeds from a $1,650,000 ten-year first mortgage financing on the property.
On January 4, 2006, the Company entered into a Term Note and
related Loan Agreement (the Term Note and Loan Agreement collectively referred
to as the "Loan Documents") with Wells Fargo Bank, National
Association (the "Bank"), whereby the Company borrowed the principal
sum of $1,000,000 (collectively, the "Loan").  The proceeds from
the Loan were applied to the purchase price for the Assets of Astromec
described above.  The principal balance of the Loan bears interest either:
at a
fluctuating rate per annum equal to the Bank's Prime Rate as in effect from
time to time, or
at a
fixed rate per annum determined by the Bank to be 2.50% above LIBOR in effect
on the first day of the applicable fixed rate term.
The fixed rate term may be for a period of either 1, 2, 3 or 6 months as
determined by the Company pursuant to the terms of the Loan Documents. 
The Company has chosen that the principal balance initially bear interest based
on the 2.50% above LIBOR rate for a fixed rate term of one month.  The
principal amount of the Loan shall be payable on the 4
th
day of each
month in installments of $20,833 commencing February 4, 2006 and continuing up to and including December 4, 2009, with a final installment consisting of
all remaining unpaid principal due and payable in full on January 4, 2010.  Accrued interest under the Loan shall be payable on the 4
th
day of
each month commencing February 4, 2006.
3
Item 9.01.       Financial Statements and Exhibits.
(a)
Financial Statements of Businesses Acquired
.
The following financial
statements of Astromec are included in this report:
Page
Independent Auditors' Report
F-1
Balance Sheet as
of December 31, 2005
F-2
Statement of
Operations and Accumulated Deficit for the Year Ended December 31, 2005
F-3
Statement of Cash
Flows for the Year Ended December 31, 2005
F-4
Notes to Financial Statements
F-5-9
(b)
Pro-Forma Financial Statements
.
Page
Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2005
F-10
Pro Forma Condensed Consolidated Statement of Operations for
the Year Ended June 30, 2005
F-11
Pro Forma Condensed Consolidated Statement of Operations for
the Six Months Ended December 31, 2005
F-12
4
INDEPENDENT AUDITORS'
REPORT
To the Board of
Directors
Astromec, Inc.
We have audited the accompanying balance sheet of Astromec,
Inc. as of December 31, 2005, and the related statements of operations and
accumulated deficit, and cash flows for the year then ended.  These financial
statements are the responsibility of the Company's management.  Our responsibility
is to express an opinion on these financial statements based on our audit.
We conducted our audits in accordance with auditing
standards generally accepted in the United States of America.  Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting.  Accordingly, we express
no such opinion.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of Astromec,
Inc. as of December 31, 2005, and the results of its operations and cash flows
for the year ended December 31, 2005, in conformity with accounting principles
generally accepted in the United States of America.
/s/ Moss Adams LLP
Moss Adams LLP
Los Angeles, California
March 10, 2006
F-1
ASTROMEC, INC.
BALANCE SHEET
December 31, 2005
ASSETS
CURRENT ASSETS
Cash
$
10,841
Accounts
  receivable
340,853
Inventories,
  net
567,604
Prepaid
  expenses
8,187
TOTAL
  CURRENT ASSETS
927,485
PROPERTY
  AND EQUIPMENT, net
88,865
OTHER
  ASSETS
1,199
TOTAL
  ASSETS
$
1,017,549
LIABILITIES AND
STOCKHOLDERS'DEFICIT
CURRENT
  LIABILITIES
Accounts
  payable
$
245,584
Accrued
  expenses
57,661
Accrued
  rent
860,000
Total
  current liabilities
1,163,245
Notes
  payable to stockholder
3,077,105
Accrued
  interest payable to stockholder
3,796,667
TOTAL
  LIABILITIES
8,037,017
S T O C K H O L D E R S'  DEFICIT
CAPITAL
  CONTRIBUTED
Common stock, $0.20 par value;  5,000,000 shares
  authorized;
5,000,000 shares issued, 4,900,000 outstanding
980,000
Preferred stock, $10.00 par value; 100,000 shares
  authorized;
100,000 shares issued and outstanding
1,000,000
ACCUMULATED
  DEFICIT
(8,999,468)
TOTAL
  STOCKHOLDERS' DEFICIT
(7,019,468)
TOTAL
  LIABILITIES AND STOCKHOLDERS' DEFICIT
$
1,017,549
See Notes to Financial
  Statements
F-2
ASTROMEC,
INC.
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
Year Ended December 31, 2005
NET
  SALES
$
2,661,618
COST
  OF GOODS SOLD
1,940,675
GROSS
  PROFIT
720,943
OPERATING
  EXPENSES
609,987
OPERATING
  INCOME
110,956
OTHER
  EXPENSES
Interest
  expense
258,315
TOTAL
  OTHER EXPENSES
258,315
LOSS
  BEFORE PROVISION FOR INCOME TAX
(147,359)
PROVISION
  FOR INCOME TAX
-
NET
  LOSS
(147,359)
ACCUMULATED
  DEFICIT, BEGINNING OF YEAR
(8,852,109)
ACCUMULATED
  DEFICIT, END OF YEAR
$
(8,999,468)
See Notes to Financial Statements
F-3
ASTROMEC, INC.
STATEMENT OF CASH FLOWS
Year Ended December 31, 2005
CASH FLOWS FROM
  OPERATING ACTIVITIES
Net
  loss
$
(147,359)
Adjustments to reconcile
  net loss to net cash
flows from operating activities:
Depreciation
  and amortization
34,829
Increase in inventory reserve
91,675
Decrease
  (increase) in operating assets and liabilities
Accounts
  receivable
6,113
Inventories
(164,178)
Prepaid
  expenses
(449)
Accounts
  payable
(12,312)
Accrued
  expenses
(21,777)
Accrued
  rent
60,000
Accrued
  interest payable to stockholder
258,315
NET
  CASH FLOWS USED IN OPERATING ACTIVITIES
104,857
CASH
  FLOWS FROM INVESTING ACTIVITIES
Purchase
  of property and equipment
(4,618)
CASH
  FLOWS FROM FINANCING ACTIVITIES
Principal
  repayment on note payable to stockholder
(161,665)
NET
  DECREASE IN CASH
(61,426)
CASH,
  BEGINNING OF YEAR
72,267
CASH,
  END OF YEAR
$
10,841
See Notes to Financial Statements
F-4
ASTROMEC, INC.
NOTES TO FINANCIAL STATEMENTS
Note 1 - Nature of Business
Astromec, Inc.
(the Company) was formed in 1967 to design and build electric motors and
accessories for military and aerospace customers. The Company designs and manufactures
fractional horsepower, direct current (DC) and alternating current (AC) motors.
The Company is located in Carson City, Nevada and operates as a subsidiary of
MD Glover, Inc.
On January 5,
2006, Pro-Dex Astromec, Inc. (the Subsidiary), a wholly-owned subsidiary of
Pro-Dex, Inc., entered into an Asset Purchase Agreement with Astromec, Inc.
whereby the Subsidiary purchased substantially all of the assets related to the
Company.
Note 2 - Summary of
Significant Accounting Policies
Basis of Presentation
The
accompanying financial statements have been prepared in accordance with
accounting principals   generally accepted in the United States of America.
Revenue Recognition
Revenue
on product sales is recognized upon shipment to the customer based on its terms
of FOB shipping point, where the risk of loss and title transfer to the
customer.  We record revenue when all of the following exist; persuasive
evidence that a sale arrangement exists, delivery of the product has occurred,
the price is fixed or determinable, and payment is reasonably assured.  Revenues include product sales and shipping
revenues, if any, net of estimated returns and discounts based upon
management's estimates and the Company's historical experience.  The
Company recognizes shipping cost, incurred as a part of the cost of sales.
Accounts Receivable
Trade receivables are carried at original invoice amount
less an estimate made for doubtful accounts based on a review of all
outstanding amounts on a monthly basis.  Management determines the
allowance for doubtful accounts by identifying troubled accounts and using
historical experience applied to an aging of accounts.  Trade receivables
are written off when deemed uncollectable.  Recoveries of trade
receivables previously written off are offset against the allowance when
received. At December 31, 2005, the Company has recorded no allowance for
doubtful accounts.
F-5
Inventories
Inventories are stated at the lower of cost (the first-in,
first-out method) or market net of a reserve for slow moving items to reflect a
reduced marketability for the item.  The reserve is calculated by comparing the
quantity of the item on hand with our prior 12-month usage history.  If
inventory on hand for a specific part exceeds an estimated 24 months of usage,
between 20% and 100% of its value may be included in the inventory reserve. 
Inventories consist of the following at December 31, 2005:
Raw materials and components
$533,033
Work in process
131,245
Finished goods
Total
664,278
Reserve for slow moving items
(96,674)
Total inventories, net
$567,604
Property and Equipment
Property and Equipment are recorded at cost and consist of
the following as of December 31, 2005:
Equipment
$820,692
Leasehold improvements
63,572
Total cost
$884,264
Accumulated depreciation and amortization
(795,399)
Total property and equipment net
$ 
  88,865
Depreciation and amortization is provided using the
straight-line method over the estimated useful lives of the assets as follows:
equipment -- 3-10 years; leasehold improvements are amortized over the shorter
of the term of the lease or their estimated useful lives. Depreciation and amortization expense was
$34,829 for the year ended December 31, 2005.
Income
Taxes
The
Company accounts for income taxes using the asset and liability method.
Deferred income taxes are recognized based on the differences between financial
statement and income tax bases of assets and liabilities using the enacted
statutory rates in effect for the year in which the differences are expected to
reverse.  Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.  The provision for income
taxes represents the tax payable for the period and the change during the
period in deferred tax assets and liabilities.  The Company's net income or
loss is reported by the parent company on a consolidated basis for federal
income tax purposes.  Under the provisions of SFAS No. 109, the Company is
required to record a provision for income taxes even if the parent Company does
not allocate such items.
F-6
Use
of Estimates
The
preparation of financial statements in accordance with accounting principles
generally accepted in the U.S. requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
The
Company's operations are affected by numerous factors including market
acceptance, changes in technologies and new laws and government regulations and
policies. The Company cannot predict what impact, if any, the occurrence of
these or other events might have on the Company's operations. Significant
estimates and assumptions made by management are used for, but not limited to,
the allowance for doubtful accounts, the reserve for slow moving or obsolete
inventories, the carrying value of long-lived assets, and the recoverability of
deferred tax assets.
Concentration of
credit risk
Financial instruments,
which can potentially subject the Company to credit risk, consist principally
of accounts receivable and cash.  The Company performs ongoing credit
evaluations of its customers and generally does not require collateral from them. 
Management does not believe an allowance for accounts receivable is necessary,
as the company has no history of credit losses. The Company places its cash
with one major financial institution in the United States, which is insured by
the Federal Deposit Insurance Corporation (FDIC) up to $100,000.
Note 3
-Related Party Transactions
The Company engages in transactions
with related parties.  Due to the nature of these entities' relationship, the
Company's financial position and operating results as of the year ended
December 31, 2005 are different from those that would have been obtained if the
entities were autonomous.
The Company leases its office and
warehouse facility from M.D. Glover Inc. for a below market rate rent of $5,000
per month.  The rent is accrued but not paid by the Company.  At December 31, 2005, $860,000 of accrued rent was payable to M.D. Glover, Inc.
The Company borrows funds from M.D.
Glover Inc. as needed.  At December 31, 2005 approximately $3,077,105 was due
to M.D. Glover, Inc. and was included as note payable to stockholder on the
accompanying balance sheet.  The advances bear interest at a rate of 8% to 9%
and are due on demand.  Interest was accrued and unpaid in the amount of
$3,796,667 at December 31, 2005.
Note 4 - Commitments and Contingencies
The Company leases its
facilities from a related entity (Note 3) under a month-to-month operating
lease agreement.  The agreement requires a minimum monthly lease payment of
approximately $5,000 and expires in July 2009, with an option to extend
thereafter.  In addition, the Company also leases equipment under various
noncancelable leases for an aggregate monthly rental of approximately $1,000,
with expiration dates through April 2006.  Rent expense for the year
ended December 31, 2005 was approximately $61,600,
all of which is payable to a related party.
At December 31, 2005, future minimum lease payments due
under noncancelable operating leases was $30,400, all of which is payable in
2006.
F-7
The Company's manufacture and distribution of certain
products involves a risk of legal action, and, from time to time, it is named
as defendants in lawsuits. While the Company's management believes that these
matters will not have a material adverse impact on its financial condition, it
is not reasonably possible to estimate the awards or damages, or the range of
awards or damages, if any, it might incur in connection with such litigation.
Note 5 - Income Taxes
For the year ended December 31, 2005, the Company incurred net operating losses and, accordingly, no
provision for income taxes has been recorded.  In addition, no benefit for
income taxes has been recorded due to the uncertainty of the realization of any
tax assets.  The Company had net deferred tax assets of approximately
$1,952,635 at December 31, 2005 consisting of net operating loss carryforwards
and timing differences related primarily to the deductibility of allowances and
accrued expenses.  As of December 31, 2005 the Company provided a 100%
valuation allowance for the net deferred tax assets as management could not
determine that it was more likely than not that the benefits of the net
deferred tax assets would be realized.  At December 31, 2005, the Company had approximately $1,070,000 of federal net operating
losses. The net operating loss carryforwards, if not utilized, will begin to
expire in 2012.
Note 6 - Shareholders' Equity
Common Stock
The Company had 5,000,000 shares
of common stock authorized with a par value of $0.20 each, amounting in
aggregate to $1,000,000.  As of December 31, 2005 4,900,000 shares were
outstanding.
Preferred Shares
The Company had 100,000 shares of
preferred stock authorized with a par value of $10.00 each, amounting in
aggregate to $1,000,000.  As of December 31, 2005 100,000 shares were
outstanding.
Note 7 - Major Customers
The Company had sales to three major customers that
represented 66% of total revenues in the year ended December 31, 2005.  Net sales to these customers in 2005 amounted to $1,762,592. Included in
accounts receivable at December 31, 2005 was $263,400 due from these major
customers.
F-8
(b)
Unaudited Pro Forma Financial Information
.
As described in Item
2.01 of this report, effective as of January 5, 2006, Pro-Dex acquired the
assets and certain operating liabilities of Astromec, Inc. and real property,
buidings and improvements from the majority shareholder of Astromec, Inc.
("acquisition of Astromec")  The accompanying unaudited pro forma condensed
consolidated balance sheet as of December 31, 2005 and the unaudited pro forma
condensed consolidated statements of operations for the year ended June 30,
2005 and the six month period ended December 31, 2005 are set forth herein to
give effect to the acquisition of Astromec as if the acquisition had been
consummated as of December 31, 2005 for the consolidated balance sheet
presentation and at the beginning of each of the periods presented for the
purposes of the consolidated statement of operations.
The unaudited pro
forma condensed consolidated balance sheet and unaudited pro forma condensed
consolidated statements of operations do not reflect any potential cost savings
that may be realized following the acquisition. The pro forma adjustments and
assumptions are based on estimates, evaluations and other data currently
available and, in Pro-Dex's opinion, provide a reasonable basis for the fair
presentation of the estimated effects directly attributable to the acquisition
and related transactions. The unaudited pro forma condensed consolidated
balance sheet and unaudited pro forma condensed consolidated statements of
operations are provided for illustrative purposes only and are not necessarily
indicative of what the consolidated results of operations or financial position
would actually have been had the acquisitions occurred at the dates noted
above, nor do they represent a forecast of the consolidated results of
operations or financial position for any future period or date.
All information
contained herein should be read in conjunction with Pro-Dex's annual report on Form
10-KSB for the year ended June 30, 2005, its quarterly report on Form 10-QSB
for the six months ended December 31, 2005, the financial statements and notes
thereto of Astromec, Inc. included in Item 9.01(a) of this Form 8-K and the
notes to the unaudited pro forma financial information included herein. The
following unaudited pro forma financial information is included in this report:
F-9
PRO-DEX, INC. AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated
Balance Sheet as of
December 31, 2005
(in thousands)
Assets
Pro Forma
Pro-Dex
Astromec
Adjustments
Totals
Cash
$    2,177
$        11
$        (2,150)
(c,d)
$         38
Accounts
  receivable
2,643
341
-
2,984
Inventories
3,575
568
-
4,143
Deferred tax
  assets
525
--
-
525
Prepaids and
  other current assets
224
8
-
232
Total current
  assets
9,144
928
(2,150)
7,922
Net fixed
  assets
1,225
89
2,410
(b,d)
3,724
Goodwill
1,110
-
1,775
(b)
2,885
Deferred tax
  assets
481
--
-
481
Other assets
1,557
1
-
1,558
Total other
  assets
3,148
1
1,775
4,924
Total assets
$   13,517
$    1,018
$           2,035
$   16,570
Liabilities and Stockholders' Equity
Pro Forma
Pro-Dex
Astromec
Adjustments
Totals
Accounts payable
$    855
$        245
$           -
$       1,100
Rent payable
  to stockholder
-
860
(860)
(a)
-
Deferred
  payable (patent)
71
-
-
71
Accrued expenses
531
58
100
(c)
689
Total current liabilities
1,457
1,163
(760)
1,860
Notes payable
  to stockholder
-
3,077
(3,077)
(a)
-
Interest
  payable to stockholder
-
3,797
(3,797)
(a)
-
Note(s)
  payable to bank(s)
-
-
2,650
(c,d)
2,650
Long-term
  liabilities (patent deferred payable)
245
-
-
245
Total non-current liabilities
245
6,874
(4,224)
2,895
Total liabilities
1,702
8,037
(4,984)
4,755
Stockholders' equity
Common stock
16,046
980
(980)
(a)
16,046
Preferred Stock
1,000
(1,000)
(a)
-
Accumulated deficit
(4,231)
(8,999)
8,999
(a)
(4,231)
Total stockholders' equity
11,815
(7,019)
7,019
11,815
Total
  liabilities and stockholders' equity
$  13,517
$   1,018
$           2,035
$  16,570
(a)    Liability and equity
not assumed in Asset Purchase Agreement
(b)    Purchase price
allocation: $2,700 purchase price in exchange for $1,018 of
assets and $303 in assumed liabilities for total consideration of $3,003,
resulting in fair market value adjustment in assets of $210 and $1,775 of
goodwill
(c)    Astromec assets
purchased for $2,700; financed with $1,600 in cash, $1,000 debt, and $100
seller financing to be paid within six months of closing, subject to closing
balance sheet adjustments.
(d)    Land and building
purchased for $2,200; financed with $550 in cash and $1,650 debt
F-10
PRO-DEX, INC. AND SUBSIDIARIES
Pro Forma Condensed Consolidated
Statements of Operations
for the Year Ended June 30, 2005
(in thousands, except per share data)
Pro Forma
Pro-Dex
Astromec
Adjustments
Totals
Sales
$13,834
$2,517
$           -
$16,351
Cost of sales
6,754
1,740
8
(c)
8,502
Gross profit
7,080
777
(8)
7,849
Selling, general &
  administrative
3,048
243
2
(c)
3,293
Research and
  development
1,740
368
-
2,108
Total
  operating expenses
4,788
611
2
5,401
Operating
  profit
2,292
166
(10)
2,448
Interest
  income (expense)
21
(266)
87
(a,d)
(158)
Other, net
117
-
-
117
Income (loss)
  before income taxes
2,430
(100)
77
2,407
Income taxes
581
-
(9)
(b)
572
Net income
  (loss)
$1,849
$(100)
$86
$1,835
Earnings Per
  Share - Basic
$0.20
$0.20
Earnings Per
  Share - Diluted
$0.19
$0.19
Shares Outstanding -
  Basic
9,107
9,107
Shares Outstanding -
  Diluted
9,651
9,651
(a) Elimination
of interest expense due to stockholder note payable not assumed in Asset
Purchase Agreement
(b)
Pro-Forma Tax benefit of 40% applied to pro-forma adjusted loss plus for pro
forma adjustments  (($100)+$77 x 40% = ($9))
(c) Additional depreciation of $30 for the
purchased asset allocation and $40 for the building, split 75% to COS and 25% to S, G&A.  Rent expense of $5/month or $60/year eliminated; split 75% to COS and 25% to S, G&A
(d) Interest on
debt used to finance purchases at 6.75% x ($1,000 + $1,650) = $179
F-11
PRO-DEX, INC. AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statement
of Operations
for the Six Months Ended December 31, 2005
(in thousands, except per share data)
Pro Forma
Pro-Dex
Astromec
Adjustments
Totals
Sales
$7,514
$1,408
$         -
$8,922
Cost of sales
4,094
1,086
4
(c)
5,184
Gross profit
3,420
322
(4)
3,738
Selling, general & administrative
1,629
158
1
(c)
1,788
Research and development
886
148
-
1,034
Total operating expenses
2,515
306
1
2,822
Operating profit
905
16
(5)
916
Interest income (expense)
43
(127)
38
(a,d)
(46)
Other income, net
30
-
-
30
Income before income taxes
978
(111)
33
900
Income taxes
389
-
(31)
(b)
358
Net (loss) income
$  589
$   (111)
$   64
$ 542
Net Income Per Share - Basic
$0.06
$0.06
Net Income Per Share - Diluted
$0.06
$0.05
Shares Outstanding - Basic
9,474
9,474
Shares Outstanding - Diluted
10,045
10,045
(a) Elimination
of interest expense due to stockholder note payable not assumed in Asset
Purchase Agreement
(b) Pro-Forma
Tax benefit of 40% applied to pro-forma adjusted loss plus for pro forma
adjustments  (($111)+$33 x 40% = ($31))
(c) Additional depreciation of $15 for the
purchased asset allocation and $20 for the building, split 75% to COS and 25% to S, G&A.  Rent expense of $5/month eliminated; split 75% to COS and 25% to S, G&A
(d)
Interest on debt used to finance purchases at 6.75% x ($1,000 + $1,650) =$179
for the year, $89 for the six month period
F-12
(c)
Exhibits
.
Number
Description
2.1
Asset
  Purchase Agreement, dated January 5, 2006, between Pro-Dex Astromec, Inc.,
  Astromec, Inc., M.D. Glover, Inc., Malcolm D. Glover, Jr., and Malcolm D.
  Glover, Sr.
(1)
2.2
Purchase and Sale Agreement
  and Escrow Instructions, dated January 3, 2006, between Pro-Dex, Inc. and
  M.D. Glover, Inc.
(1)
10.1
Term Note, dated January 4, 2006, by Pro-Dex, Inc. in favor of Wells Fargo Bank, National Association.
(1)
10.2
Loan Agreement, dated January 4, 2006, between Pro-Dex, Inc. and Wells Fargo Bank, National Association.
(1)
(1)  Filed as
an exhibit to the Pro-Dex, Inc. Form 8-K filed on January 6, 2005 and incorporated herein by reference.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date:  March 20, 2006
Pro-Dex, Inc.
By:
/s/ Jeffrey J. Ritchey
Jeffrey J. Ritchey, Chief Financial Officer, Secretary and Vice
President