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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=4>UNITED STATES</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>WASHINGTON, D.C. 20549</font></b></p>
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<p style=' margin-bottom:0pt; margin-top:2pt;text-align:center;'><b><font SIZE=4>FORM 8-K</font></b></p>
<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font SIZE=2>CURRENT REPORT</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>PURSUANT TO SECTION 13 OR 15(d) OF THE</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>SECURITIES EXCHANGE ACT OF 1934</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>June 20, 2006</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font SIZE=5>DYNABAZAAR, INC.</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)</font></p>
<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>DELAWARE</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(STATE OR OTHER JURISDICTION OF INCORPORATION)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="50">&nbsp;</td><td align=center valign=top width="280"><b><font size=2>000-29423</font></b><br>
<font size=2>(COMMISSION FILE NUMBER)</font><br></td>
<td align=center width="280">&nbsp;</td><td align=center valign=top width="280"><b><font size=2>04-3351937</font></b><br>
<font size=2>(I.R.S. EMPLOYER IDENTIFICATION NO.)</font></td><td width="50">&nbsp;</td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="50">&nbsp;</td><td align=center valign=top width="280"><font size=2>&nbsp;</font><br></td>
<td align=center width="280">&nbsp;</td><td align=center valign=top width="280"></td><td width="50">&nbsp;</td></tr></table>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>888 Seventh Avenue</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>New York, New York 10019</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>(212) 974-5730</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(REGISTRANT&#146;S TELEPHONE NUMBER, INCLUDING AREA CODE)</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>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=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2><img src="emptybox.gif" width="12" height="12">
  &nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities
  Act (17 CFR 230.425)</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2><img src="emptybox.gif" width="12" height="12">
  &nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act
  (17 CFR 240.14a-12)</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2><img src="emptybox.gif" width="12" height="12">
  &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under
  the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2><img src="emptybox.gif" width="12" height="12">
  &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under
  the Exchange Act (17 CFR 240.13e-4(c)) </font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font SIZE=2>SPECIAL NOTE REGARDING FORWARD-LOOKING FINANCIAL INFORMATION</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This
    Current Report on Form 8-K contains or may contain forward-looking statements,
    which reflect our views with respect to future events and financial performance.
    These forward-looking statements are based on current expectations, estimates,
    projections and assumptions and are subject to certain uncertainties and
    other factors that could cause actual results to differ materially from such
    statements. These forward-looking statements are identified by, among other
    things, the words &#147;anticipates&#148;, &#147;believes&#148;, &#147;estimates&#148;, &#147;expects&#148;, &#147;plans&#148;, &#147;projects&#148;, &#147;targets&#148;, &#147;will&#148; and
    similar expressions. Readers are cautioned not to place undue reliance on
    these forward-looking statements, which speak only as of the date they were
    made. Registrant (as defined below) undertakes no obligations to update or
    revise any forward-looking  statements, whether as a result of new information,
    future events or otherwise. Important factors that may cause actual results
    to differ significantly from those projected include the risk factors specified in Item 2.01(B) below.</font></p>



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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Item
        1.01. Entry into a Material Definitive Agreement.</font></b></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On
    June 20, 2006, Costar Video Systems, LLC (&#147;Costar&#148;) and Video Solutions
    Technology Center, LLC (&#147;VSTC&#148;),  direct and indirect wholly owned
    subsidiaries of Dynabazaar, Inc., a Delaware corporation (the &#147;Registrant&#148;, &#147;Dynabazaar&#148;,
    the &#147;Company&#148; or &#147;we&#148;), completed the acquisition (the &#147;Acquisition&#148;)
    of substantially all of the assets of Southern Imaging, Inc., a Texas Corporation
    (&#147;Southern Imaging&#148;), and Video Solutions Technology Center, Inc.,
    a Nevada corporation (&#147;Video Solutions&#148;), pursuant to the transactions
    contemplated by the asset purchase agreement, dated as of June 20, 2006 (the &#147;Asset
    Purchase Agreement&#148;),
    by and between Southern Imaging, Video Solutions, the shareholders of Southern
Imaging, Costar and VSTC.  </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Costar, the Company&#146;s subsidiary which acquired Southern Imaging&#146;s
    assets, will design, source and distribute video and imaging products for
    the security and industrial markets. VSTC, a subsidiary of Costar which acquired
    the assets of Video Solutions, will provide product design and development,
technical support and repair services for Costar.  </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The consideration for the Acquisition was up to approximately $9.5 million, consisting of the issuance at closing of 200,000 shares of the common stock of Dynabazaar, a cash payment of $3 million less the value of the 200,000 shares of Dynabazaar common stock, the assumption of approximately $2.475 million of certain long-term debt and related party notes payable, and deferred consideration of up to $4 million in cash, contingent upon Costar and VSTC achieving certain level of sales and EBITDA after the closing.  </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A copy of the Asset Purchase Agreement is attached hereto as Exhibit 2.1 and incorporated herein by reference.  The description of the Asset Purchase Agreement and the transactions consummated thereby are qualified in their entirety by reference to such exhibit.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>There were no material relationships between Registrant or its affiliates and any of the parties to the Asset Purchase Agreement, other than in respect of such agreement.</font></p>



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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Item
        2.01. </font></b><b><font size=2>Completion of Acquisition or Disposition
        of Assets.</font></b></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>For additional information concerning the Acquisition, please see the information set forth above under Item 1.01 of this Current Report on Form 8-K, which information is incorporated herein by reference.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Registrant was a &#147;shell company&#148; (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)) immediately before the completion of the Acquisition. Accordingly, pursuant to the requirements of Item 2.01(f) of Form 8-K, the information set forth below includes the information that would be required if Registrant were filing a general form for registration of securities on Form 10 under the Exchange Act upon consummation of the Acquisition, with such information reflecting Registrant and its securities upon consummation of the Acquisition.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Pursuant to Item 2.01(f) of Form 8-K, (1) the information with respect to &#147;Business&#148; and &#147;Market Price of and Dividends on Registrant&#146;s Common Equity and Related Stockholder Matters,&#148; contained in Item 1 of Part I and Item 5 of Part II, respectively, of Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and contained in the subsection entitled &#147;The Company&#148; in Note 1 to the &#147;Notes to Condensed Consolidated Financial Statements&#148; in Registrant&#146;s Quarterly Report on Form 10-Q for the period ended March 31, 2006; (2) the information with respect to &#147;Legal Proceedings&#148; contained in the subsection entitled &#147;Contingencies and Legal Proceedings&#148; in Note 3 to the &#147;Notes to Condensed Consolidated Financial Statements&#148; in Registrant&#146;s Quarterly Report on Form 10-Q for the period ended March 31,
2006; and (3) the information with respect to &#147;Security Ownership of Certain Beneficial Owners and Management,&#148; &#147;Directors and Executive Officers,&#148; &#147;Executive Compensation&#148; and &#147;Certain Relationships and Related Transactions&#148; contained in the subsections entitled &#147;Directors,&#148; &#147;Executive Officers,&#148; &#147;Security Ownership of Certain Beneficial Owners and Management,&#148; &#147;Option Grants in Fiscal Year 2005,&#148; &#147;Aggregate Option Exercises in Fiscal Year 2005 and Year End Option Values,&#148; &#147;Director Compensation,&#148; &#147;Summary Compensation Table,&#148; &#147;Performance Graph&#148; and &#147;Certain Relationships and Related Transactions&#148; contained in the Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, in each case, is hereby incorporated by reference into this Current Report on Form 8-K under Item 2.01 hereof.</font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>A.</font></b></p>
    </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Description of Business</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Summary</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Dynabazaar was incorporated in the State of Delaware in February 1997 as &#147;Fairmarket, Inc.&#148;  Through September 3, 2003, we were an online auction and promotions technology service provider that enabled marketers to create results-oriented rewards programs and helped commerce companies automate the process of selling their excess inventory online to wholesale and retail buyers. On September 4, 2003, we sold substantially all of our operating assets to eBay, Inc. (&#147;eBay&#148;) for consideration of $4.5 million in cash under the terms and conditions of an asset purchase agreement we entered into with eBay on June 20, 2003.  Following the closing of the asset sale, we changed our name from &#147;Fairmarket, Inc.&#148; to &#147;Dynabazaar, Inc.&#148;</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>In
    connection with the cessation of our online auction business, we relocated
    our principal executive offices as of January 1, 2004 to 888 Seventh Avenue,
    17th Floor, New York, New York 10019, an office maintained by Barington
    Capital Group, L.P., a limited partnership whose general partner is a corporation
    of which
    James Mitarotonda is Chairman, President and Chief Executive Officer. Mr.&nbsp;Mitarotonda
    is our President and Chief Executive Officer and sits on our Board of Directors.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>From January 2003 until the completion of the Acquisition, we have not operated any business and have been settling our remaining claims and liabilities while reviewing alternatives for the use or disposition of our remaining assets.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Our common stock trades on the NASDAQ OTC bulletin board under the symbol &#147;FAIM.OB&#148;.  Our common stock was quoted on the NASDAQ National Market, but was delisted on June 24, 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>In May 2006, William Fox resigned as Dynabazaar&#146;s President and Chief Executive Officer and from its Board of Directors.  Simultaneously, James Mitarotonda became the Company&#146;s President and Chief Executive Officer.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Additional information with respect to the &#147;Description of Business&#148; of Dynabazaar is hereby incorporated by reference to Item I of Part I of Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and to the subsection entitled &#147;The Company&#148; in Note 1 to the &#147;Notes to Condensed Consolidated Financial Statements&#148; of Dynabazaar&#146;s Quarterly Report on Form 10-Q for the period ended March 31, 2006.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Acquisition</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>On June 20, 2006, Costar and Video Solutions, direct and indirect wholly owned subsidiaries of the Registrant, completed the acquisition of substantially all of the assets of Southern Imaging and Video Solutions, pursuant to the transactions contemplated by the Asset Purchase Agreement.  Costar, a wholly owned subsidiary of the Registrant, acquired the assets of Southern Imaging and VSTC, a wholly owned subsidiary of Costar, acquired the assets of Video Solutions.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Business </font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Costar designs, sources and distributes video and imaging products for the security and industrial markets. The product line for the security market consists primarily of closed circuit television (&#147;CCTV&#148;) cameras, while the product line for the industrial market is comprised of cameras and lenses utilized by biomedical and manufacturing companies. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The production of all units distributed by Costar is outsourced to contract manufacturers, and the majority of revenues are derived from sales of products under  the Costar</font><sup><font SIZE=2>TM </font></sup><font size=2>brand. The balance of Costar&#146;s business is generated from (a) a private label business and (b) the distribution of other companies&#146; branded products. </font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Video
    Solutions provides product design and development, technical support
    and repair services for Costar. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Plan of Operation </font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The Registrant&#146;s plan of operation is for Costar to design, source and distribute video and imaging products for the security and industrial markets and for VSTC to provide product design and development, technical support and repair services for Costar, in each case under a business model intended to deliver the highest levels of technology and support services to its customers at competitive prices.  </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Financial Information about Geographic and Business Segments </font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Over 97% of Costar&#146;s revenues are attributable to customers located within the United States.  The remaining 3% of revenues are generated from customers found in Portugal, Canada, Singapore, South Korea and France.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Industry</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>We
    believe that the fear of terrorism and conventional crime, coupled with the
    increased effectiveness and affordability of available countermeasures, has
    contributed to the ongoing expansion of the security industry. The Registrant
    believes that growth of CCTV equipment will continue, driven by technological
    innovations such as the adoption of more efficient, low cost, networked digital
technologies.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Stimulated by the demand for increased efficiency, we believe that the market for industrial vision products is growing larger as well.  Industrial cameras, for example, can be employed to increase the efficiency of a diverse set of manufacturing operations including those that produce semiconductors, automobiles, pharmaceuticals, chemicals and food.  </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Strategy and Marketing Efforts</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The
    security and industrial divisions will continue their analogous strategies &#150; increasing
    business with systems integrators and original equipment manufacturers (OEM)
    while targeting independent distributors and large systems integrators to
    cultivate additional channels of distribution. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Costar&#146;s sales and marketing strategy is focused on measures aimed at generating both product innovations and market recognition of the Costar</font><sup><font SIZE=2>TM</font></sup><font size=2> brand. Such innovations will likely include the continued shift from analog to digital devices.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Costar is working to merge various existing technologies in an effort to enhance the performance capabilities of its security and industrial products for its customers. Product improvements are largely driven by the unique needs of Costar&#146;s customers. Advancements result from integrating a multitude of existing technologies for performance in a given environment. The ensuing innovations create unique value for our customers.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Products</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The security product line, comprised of cameras, lenses, digital video recorders and high speed domes, is marketed under the Costar</font><sup><font SIZE=2>TM</font></sup><font size=2> brand name. We expect to introduce new products for inclusion in integrated systems and distribution to Costar&#146;s evolving customer base.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The
    industrial product line, consisting of cameras, monitors, cables, lenses
    and video printers, are distributed  under brand names, such as Sony,
    Panasonic and Hitachi, the Costar</font><sup><font SIZE=2>TM</font></sup><font size=2> brand
    name and, for OEM customers, private labels.</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Competition </font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>In the security market, Costar competes with General Electric, Honeywell and smaller companies like Pelco, GVI, Mace and Vicon.  In the industrial market, we believe that Costar is considered one of the top three distributors (the other two being AEGIS and Industrial Vision Source), selling cameras from manufacturers such as Sony, Panasonic, Hitachi, JVC, Toshiba and JAI.  In addition, Costar markets industrial products under the Costar</font><sup><font SIZE=2>TM</font></sup><font size=2> brand name and under private labels for certain OEM&#146;s competing in this sector with other manufacturers.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Employees</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Costar currently employs fourteen (14) people:  five (5) in development and technical support, five (5) in sales and marketing, and the remainder in administrative support.  All employees are located in the United States and none are represented by a union or labor group. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Facilities</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Costar&#146;s primary facilities are located in Carrolton, Texas and Anaheim, California. Both facilities are leased. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Legal Proceedings</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The information with respect to &#147;Legal Proceedings&#148; of Registrant is hereby incorporated by reference to the subsection entitled &#147;Contingencies and Legal Proceedings&#148; in Note 5 to the &#147;Notes to Condensed Consolidated Financial Statements&#148; in Registrant&#146;s Form 10-Q for the quarter ended March 31, 2006 filed with the SEC on May 15, 2006.</font></p>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>B.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Risk Factors</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Reliance on Manufacturing Sources</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>We outsource production of our products to contract manufacturers. Our manufacturers&#146; ability to complete our orders on a timely basis while maintaining high product quality is important to our operational success. The manufacturers&#146; failure to live up to the production standards might cause brand equity damage and legal liability exposure. Such events could have a material adverse effect on our financial performance. Despite the precautionary measures we have taken to avoid manufacturing defects and delays, replacing an existing manufacturer with a new one is a complicated and a time intensive process. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Rapid Technology Changes within Industry</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Vision imaging products are subject to technology changes, causing the industry to set new standards and practices. Such changes could substantially decrease the demand for our current product lines, thus hindering our operational and financial performance. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Intensifying Competition</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Competitiveness has intensified in recent years. Larger competitors may respond more quickly to rapid technological changes, as they have more capital and resources available to devote to research and development, manufacturing changes and marketing. Increased competition could force us to decrease our prices thus eroding our margins, which could negatively impact our operational and financial performance. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Retaining Quality Personnel</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The key to our success is dependant on the dedication, talents and hard work of our personnel. In order to fulfill our growth targets we must retain and attract high quality employees and management. Losing key personnel would likely be detrimental to our success.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Merger and Acquisition Costs</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Our growth strategy may include the acquisition of complimentary businesses. The integration of an acquired business might have difficult consequences. Transaction and integration costs could affect operational and financial performance of our business as a whole. Synergies identified pre-closing may not materialize. Management&#146;s attention might be temporarily diverted from running our business. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Delisted
from The NASDAQ National Market</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Registrant&#146;s common stock was delisted from trading on The NASDAQ National Market in 2004 by reason of not maintaining listing requirements due to the lack of tangible business operations and significantly reduced market price of the common stock. As a result, Registrant&#146;s common stock currently trades over the counter on the NASDAQ OTC Bulletin Board, and the ability of Registrant&#146;s stockholders to obtain liquidity and consistent market prices for Registrant&#146;s shares has been significantly impaired.</font></p>
<p align="center"><Font size="2" face="serif">7</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>Public Company Expenses</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>As a public company, Registrant incurs significant legal, accounting and other expenses. In addition, the Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the Securities and Exchange Commission and NASDAQ, has required changes in corporate governance practices of public companies. These rules and regulations increase legal and financial compliance costs and make some activities more time consuming and costly. In addition, Registrant incurs additional costs associated with its public company reporting requirements. These rules and regulations also may make it more difficult and more expensive for Registrant to obtain director and officer liability insurance, and Registrant may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage.</font></p>
<p align="center"><Font size="2" face="serif">8</font></p>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size="2">C.</font></b></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Financial
        Information</font></b></p>
    </td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.36in;text-align:left;'><b><font size=2>(a) Selected Financial Data</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The information with respect to Registrant&#146;s Selected Financial Data is hereby incorporated by reference to Item 6 of Part I of Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The following table sets forth supplemental selected financial data of Costar and should be read in conjunction with the Financial Statements and Notes thereto included elsewhere herein.  The following information reflects only the Costar Video Systems business and does not reflect the prior operations of Dynabazaar, Inc.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2005</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2004</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2003</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2002</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2001</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Audited</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Audited</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Audited</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Unaudited</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Unaudited</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Statement of Operations Data:</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="14" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1><b>($
        in thousands)</b></font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Revenues</font>                                                                                                                                                           </p> </td>

    <td valign=bottom width="2%" >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom width="8%" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,206</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom width="8%" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,467</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom width="8%" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,449</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom width="8%" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,071</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom width="8%" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,538</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cost of Revenues</font>                                                                                                                 </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,055</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,628</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,050</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,648</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,688</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top height="18" >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Gross Profit</font>                                                                                                                                                 </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,251</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,839</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,390</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,423</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>850</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >

      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Operating
        expenses</font></p>
      <p style='margin-left:18pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>General
        and administrative </font> </p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>1,627</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>1,431</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>1,284</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>1,181</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>1,351</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:18pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total operating expenses</font>                                                                          </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,627</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,431</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,284</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,181</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,351</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net Income from operations</font>                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>624</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>408</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>106</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>242</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(501</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other Income (Expense)</font>                                                                                 </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Interest Expense Net</font>                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(182</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(164</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(124</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(143</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(149</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other Income (Expense) </font>                                                                              </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >

      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        Other Income (Expense)</font> </p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(183</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(151</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(111</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(134</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(123</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net Income (loss)</font>                                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>441</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>257</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>108</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(624</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>


<br>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>(b) Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations with respect to Registrant included in Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and in Registrant&#146;s Form 10-Q for the period ended March 31, 2006 are hereby incorporated by reference.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The following supplemental Management&#146;s Discussion and Analysis contains forward-looking statements within the meaning of Federal securities laws. You can identify these statements because they use forward-looking terminology such as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;estimate,&#148; &#147;continue,&#148; &#147;believe&#148; and &#147;intend&#148; or other similar words. These words, however, are not the exclusive means by which you can identify these statements. You can also identify forward-looking statements because they discuss future expectations, contain projections of results of operations or of financial conditions, characterize future events or circumstances or state other forward-looking information. We have based all forward-looking statements included in this Management&#146;s Discussion and Analysis on information currently
available to us, and we assume no obligation to update any of these forward-looking statements. Although we believe that the expectations reflected in any of these forward-looking statements are based on reasonable assumptions, actual results could differ materially from those projected in the forward-looking statements. Potential risks and uncertainty include, among others, those set forth in the &#147;Risk Factors&#148; section. The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in this Current Report on Form 8-K.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>While we believe that the discussion and analysis in this report is adequate for a fair presentation of the information, we recommend that you read this discussion and analysis in conjunction with the description of our business included elsewhere in this report.</font></p>
<p align="center"><Font size="2" face="serif">9</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Critical Accounting Policies</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The preparation of Registrant&#146;s financial statements requires management to make difficult, subjective or complex judgments, including making estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, based upon information available at the time, historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates are subject to an inherent degree of uncertainty. Registrant&#146;s significant accounting policies are described in Note A, Summary of Significant Accounting Policies, to the financial statements of Southern Imaging for the year ended December 31, 2005 included in this Current Report on Form 8-K. No changes to these critical policies have taken place during the year to date period ended March 31, 2006.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><i><b><font size=2>Results of Operations ($ in thousands)</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The
    following table sets forth, for the periods presented, certain data derived
    from the statement of operations of Southern Imaging as a percentage of total
    revenues. The following information reflects only Southern Imaging&#146;s
    business and does not reflect the prior operations of Dynabazaar.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="3" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>3 month (13 week) period ended</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="3" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Year ended</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March 31,</font></b><br> <b><font size=1>2006</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March 31,</font></b><br> <b><font size=1>2005</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2005</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31,</font></b><br> <b><font size=1>2004</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
    </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size="2">Revenues</font> </p> </td>

    <td valign=bottom width="2%" >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=bottom ><p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size="2">Cost
        of Revenues </font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>78%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>72%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>75%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>75%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size="2">Gross
        Profit</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>28%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>25%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>25%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size="2">Operating
        Expenses</font><br> <font size=2>General and administrative</font>                                                                                                                    </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>11%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>21%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>18%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>18%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total operating expenses </font>                                                                                                                        <b></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>21%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font SIZE=2>Other Expenses</font>                                                                                                                                                                     </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Interest</font>                                                                                                                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total other expenses</font>                                                                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font SIZE=2>Net Income</font>                                                                                                                                                                                                 </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5%&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><u><i><b><font size=2>Three month (13 week) periods ended March 31, 2006 and March 31, 2005</font></b></i></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Revenues</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Revenue for the quarter ended March 31, 2006 increased by $2,037 or 219% to $3,754, as compared to $1,716 for the quarter ended March 31, 2005. Revenues increased due to sales made to two major customer accounts.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Gross Profit</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Gross profit increased by $346 to $821 for the quarter ended March 31, 2006, as compared to $475 for the quarter ended March 31, 2005.  Gross profit as a percentage of sales decreased to 22% for the quarter ended March 31, 2006, as compared to 28% for the quarter ended March 31, 2005. Gross profit declined due to lower margins on a substantial increase in sales to two major accounts.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Operating Expenses</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Operating expenses increased by $63 to $430 for the quarter ended March 31, 2006, as compared to $366 for the quarter ended March 31, 2005. The increase was due to increases in office expense of $29, bad debt expense of $19, office supplies of $13 and depreciation expense of $15. These increases were offset by a decrease in advertising expense of $18.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Net Income</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net Income increased by $256 to $315 for the quarter ended March 31, 2006, as compared to $59 for the quarter ended March 31, 2005.</font></p>

<p align="center"><font size="2">10</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><u><i><b><font size=2>Fiscal years ended December 31, 2005 and December 31, 2004</font></b></i></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Revenues</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Revenues for the fiscal year ended December 31, 2005 increased by $1,739, or 23.6%, to $9,206, as compared to $7,467 for the fiscal year ended December 31, 2004.  The increase was primarily due to sales of security equipment made to Wal-Mart which accounted for 14% of total sales.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Gross Profit</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Gross profit increased by $412 to $2,251 for the fiscal year ended December 31, 2005, as compared to $1,839 for the fiscal year ended December 31, 2004 and as a percent of sales, remained at 25% for the fiscal years ended December 31, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Operating Expenses</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Operating expenses increased by $196 to $1,627 for the fiscal year ended December 31, 2005, as compared to $1,431 for the fiscal year ended December 31, 2004, as a result of increased salaries and professional fees, offset by a decrease in bad debt expense.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Net Income </font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net income for the fiscal year ended December 31, 2005 was $441, as compared to net income of $257 for the fiscal year ended December 31, 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><u><i><b><font size=2>Financial Condition, Liquidity and Capital Resources</font></b></i></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Registrant:</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>As of March 31, 2006, Registrant had approximately $9.0 million of cash and cash equivalents. As previously mentioned, on June 20, 2006, the Registrant purchased the assets of Southern Imaging.  The total consideration for the transaction is up to approximately $9.5 million. Of this amount, approximately $3 million was paid at closing and approximately $2.475 million of certain long-term debt and related party notes payable was assumed. The balance of approximately $4 million will be paid, in cash, during the period 2006 to 2009 subject to the Costar and VSTC achieving certain levels of sales and EBITDA. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Registrant believes that its existing cash and cash equivalents are sufficient to fund the Company&#146;s current operations and meet its working capital and capital expenditures needs in the near future. If Registrant grows through acquisitions, Registrant could need to obtain additional financing.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Southern Imaging, Inc.:</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net cash used in operating activities for the three month (13 week) period ended March 31, 2006 was $264 as compared to net cash used of $217 for the three month period ended March 31, 2005.  This was attributable to an increase in accounts receivable of $985 and inventory of $174, offset by an increase in accounts payable of $566 and net income for the quarter of $315.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net cash used by investing activities for the three month (13 week) period ended March 31, 2006 was $(7) as compared to net cash used of $(5) for the three month period ended March 31, 2005.  This was attributable to the purchase of property and equipment.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net cash provided by financing activities for the three month (13 week) period ended March 31, 2006 was $373 as compared to net cash used of $99 for the three month  period ended March 31, 2005.  This was attributable to a net increase in the proceeds from the line of credit.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net
    cash provided in operating activities for fiscal year ended December 31,
    2005 was $9 as compared to net cash used of $(225) for the fiscal year ended
    December 31, 2004. This improvement was attributable to an increase in net
    income of $190, a reduction in bad debt write off of $140, offset by a decrease
in accounts receivable and inventory of $93.</font></p>

<p align="center"><Font size="2" face="serif">11</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net cash used in investing activities for fiscal year ended December 31, 2005 was $(51) as compared to net cash used of $(10) for the fiscal year ended December 31, 2004. This increase resulted from a payment to satisfy a non-compete agreement of $13 together with an increase in the purchase of property and equipment of $22.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>Net cash provided by financing activities for fiscal year ended December 31, 2005 was $83 as compared to $247 for the fiscal year ended December 31, 2004. This reflects a decrease in working capital borrowings and an increase in repayment of notes payable in 2005 compared to 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><b><font size=2>Off-Balance Sheet Arrangements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>We do not have any off-balance arrangements required to be disclosed pursuant to Item 303 of Regulation S-K.</font></p>



<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
    <td width="35" valign=top style='padding:8.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size="1"></font></p>
    </td>
    <td valign=top style='padding:8.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>(c)
        Quantitative and Qualitative Disclosures about Market Risk</font></b></p>
    </td>
  </tr>
</table>



<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>The information with respect to &#147;Quantitative and Qualitative Disclosures About Market Risk&#148; of Registrant is hereby incorporated by reference to Item 7A of Part II of Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and Item 3 of Part I of Registrant&#146;s Quarterly Report on Form 10-Q for the period ended March 31, 2006.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;' height="17">
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>D.</font></b></p>
    </td>

    <td valign=top style='padding:6.0pt 0in 0in 0in;' height="17">
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Security Ownership of Certain Beneficial Owners and Management</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following table presents information with respect to beneficial ownership of the common stock as of May 15, 2006 by: </font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:5.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>each person known by us to beneficially own more than 5% of the common stock;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:5.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>individuals serving as our Named Executive Officers;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:5.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>each of our directors; and</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:5.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>all executive officers and directors as a group.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Except as otherwise noted, the address of each person/entity listed in the table is c/o Dynabazaar, Inc., 888 Seventh Avenue, 17th Floor, New York, NY 10019. The table includes all shares of common stock issuable within 60 days of May 15, 2006 upon the exercise of options and other rights beneficially owned by the indicated stockholders on that date. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and includes voting and investment power with respect to all shares of common stock. To our knowledge, except under applicable community property laws or as otherwise indicated, the persons named in the table have sole voting and sole investment control with respect to all shares of common stock beneficially owned. The applicable percentage of ownership for each stockholder is based on 23,409,956 shares of common stock outstanding as of May 15, 2006 together
with applicable options for that stockholder. Shares of common stock issuable upon exercise of options and other rights beneficially owned are deemed outstanding for the purpose of computing the percentage ownership of the person holding those options and other rights, but are not deemed outstanding for computing the percentage ownership of any other person. </font></p>
<p align="center"><Font size="2" face="serif">12</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="3" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Shares Beneficially</font></b><br> <b><font size=1>Owned</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Name of Beneficial Owner</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Number</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Percent</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Ticketmaster</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,225,000</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9.50</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>3701 Wilshire Boulevard</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Los Angeles, CA 90010</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Barington Capital Group, L.P.</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,936,360</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12.54</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>888 Seventh Avenue, 17th Floor</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>New York, NY 10019</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Jay Gottlieb</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,658,019</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7.08</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>27 Misty Brook Lane</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>New Fairfield, CT 06812</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Melvyn Brunt</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100,000</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

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

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p>
    </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Rory J. Cowan</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100,000</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>*</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p>
    </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>James Mitarotonda</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,047,330</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(6)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8.75</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Raymond Steele</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>75,000</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(7)</font></p> </td>

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

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p>
    </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>All executive officers and directors as a group</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>(consisting of 4 persons) (4)-(7)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,322,330</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(8)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9.92</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr></table>





<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(*)
        Represents less than 1% of the outstanding shares of common stock. </font></p>
    </td>
  </tr>
</table>



<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(1) This information is based on a Schedule 13D filed by Ticketmaster (formerly Ticketmaster Online-CitySearch, Inc.) with the Securities and Exchange Commission on June 25, 2003. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(2) This information is based solely on a Schedule 13D, as amended, filed by Barington Companies Equity Partners, L.P., Ramius Capital Group, LLC, Ramius Halifax Partners, L.P., MM Companies, Inc., Jewelcor Management, Inc., Barington Capital Group, L.P., Ramius Securities, LLC and Starboard Value &amp; Opportunity Fund with the SEC on May 25, 2004, reporting a combined ownership of 2,785,560 shares of our common stock by these reporting entities, and (i) a Form 4 filed by James Mitarotonda with the SEC on June 9, 2004, reporting the acquisition of 20,800 shares by Barington Capital Group, L.P. on June 7, 2004; (ii) a Form 4 filed by James Mitarotonda with the SEC on August 25, 2005, reporting the acquisition of 105,000 shares by Barington Capital Group, L.P. on August 23, 2005; and (iii) a Form 4 filed by James Mitarotonda with the SEC on March 29, 2006, reporting the acquisition on March
28, 2006 of 25,000 shares of common stock issuable upon the exercise of options.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(3)
    This information is based on a Schedule 13D filed by Jay Gottlieb with the
    Securities and Exchange Commission on May 2, 2006. According to such Schedule
    13D, 1,262,049 of these shares are owned by Mr.&nbsp;Gottlieb and 395,970
    are beneficially owned by The Laurick Trust. The trust is for the benefit
    of Mr.&nbsp;Gottlieb&#146;s adult children. Mr.&nbsp;Gottlieb, as trustee
    of the trust, has sole responsibility to vote and dispose of these shares
    as well as the shares in his name. Mr.&nbsp;Gottlieb disclaims beneficial
    ownership of any such shares held by him as trustee for the benefit of his
    adult children.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(4) Consists of 100,000 shares of common stock issuable upon the exercise of options. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(5) Consists of 100,000 shares of common stock issuable upon the exercise of options. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(6) Includes 1,404,330 shares of common stock beneficial owned by Barington Capital Group, L.P. and Barington Companies Equity Partners, L.P., entities which are directly or indirectly controlled by Mr.&nbsp;Mitarotonda. Mr.&nbsp;Mitarotonda disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. Also includes 643,000 shares of common stock issuable upon the exercise of options granted to Mr.&nbsp;Mitarotonda. </font></p>

<p align="center"><Font size="2" face="serif">13</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.36in;text-align:left;'><font size=2>(7) Consists of 75,000 shares of common stock issuable upon the exercise of options. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.36in;text-align:left;'><font size=2>(8) Includes 1,036,167 shares of common stock issuable upon the exercise of options. </font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>E.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Directors and Executive Officers</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The number of directors comprising our board of directors (the &#147;Board&#148;) is currently fixed at three. Each Board member holds office for a term of three years or until his or her respective successor has been duly elected and qualified. Our Board is divided into three classes, consisting of one Class I director (Raymond Steele); one Class II director (Rory J. Cowan); and one Class III director (James A Mitarotonda).</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Set forth below is certain information regarding the directors of Dynabazaar, Inc.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Name</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Age</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Position
        with the Company</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Director
        Since</font></b></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>James
        A. Mitarotonda</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="5%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>51</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="45%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>President,
        Chief Executive Officer and Director</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2003</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Rory
        J. Cowan</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>53</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chairman
        of the Board of Directors (1)(2)(3)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2001</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Raymond
        Steele</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>71</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Director
        (1)(2)(3)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p>
    </td>
  </tr>
</table>





<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(1)</font></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Member of Audit Committee</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(2)
        </font></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Member of Nominating and Corporate Governance Committee</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(3)</font></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Member of Compensation Committee</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Mr.&nbsp;Mitarotonda
  has served as one of our directors since September 2003 and as our President
  and Chief Executive Officer since May 2006. He also served as our President
  and Chief Executive Officer from January 2004 to December 17, 2004. Mr.&nbsp;Mitarotonda
  is Chairman of the Board, President and Chief Executive Officer of Barington
  Capital Group, L.P., an investment firm that he co-founded in November 1991.
  Mr.&nbsp;Mitarotonda is also Chairman of the Board, President and Chief Executive
  Officer of Barington Companies Investors, LLC, the general partner of Barington
  Companies Equity Partners, L.P., a small capitalization value fund. In addition,
  he is the Chairman of the Board, President and Chief Executive Officer of Barington
  Companies Advisors, LLC, the investment advisor of Barington Companies Offshore
  Fund, Ltd., a small capitalization value fund. </font><font size=2>Mr.&nbsp;Mitarotonda
  is also a director of L Q Corporation, Inc. (OTCBB:LQCI.OB) and A. Schulman,
  Inc. (NASDAQ:SHLM). He also has served as L Q Corporation, Inc.&#146;s Co-Chief
  Executive Officer and Co-Chairman from April 2003 to May 2004, its sole Chief
  Executive Officer from May 2004 to October 2004 and as its sole Chairman since
  May 2004. In May 1988, Mr.&nbsp;Mitarotonda co-founded Commonwealth Associates,
  an investment banking, brokerage and securities trading firm. Mr.&nbsp;Mitarotonda
  served as Chairman of the Board and Co-Chief Executive Officer of JMJ Management
  Company Inc., the general partner of Commonwealth Associates.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Mr.&nbsp;Cowan has served as one of our directors since March 2001. Mr.&nbsp;Cowan is the founder of Lionbridge Technologies, Inc. (&#147;Lionbridge&#148;), a provider of globalization products and services for worldwide deployment of technology and information-based products, where he has served as Chairman of the Board and Chief Executive Officer since September 1996. From September 1996 to March 2000, Mr.&nbsp;Cowan also served as President of Lionbridge. Before founding Lionbridge, Mr.&nbsp;Cowan served as Chief Executive Officer of Interleaf, Inc., a document automation software services company, from October 1996 to January 1997. From May 1995 to June 1996, Mr.&nbsp;Cowan served as Chief Executive Officer of Stream International, Inc., a software and services provider and a division of R.R. Donnelley &amp; Sons (&#147;R.R. Donnelley&#148;), a provider of commercial print and print-related services.
Mr.&nbsp;Cowan joined R.R. Donnelley in 1988 and served most recently as Executive Vice President from 1991 to June 1996. Before joining R.R. Donnelley, Mr.&nbsp;Cowan was founder of CSA Press of Hudson, Mass., a software duplication firm, and held positions at Compugraphic Corporation, an automated publishing hardware firm.</font></p>
<p align="center"><Font size="2" face="serif">14</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Mr.&nbsp;Steele has served as one of our directors since December 2004. Mr.&nbsp;Steele is a retired businessman. Prior to his retirement, he held various senior positions such as Executive Vice President of Pacholder Associates, Inc. (from August 1990 until September 1993), Executive Advisor at the Nickert Group (from 1989 through 1990), and Vice President, Trust Officer and Chief Investment Officer of the Provident Bank (from 1984 through 1988). Mr.&nbsp;Steele currently serves on the board of directors of American BankNote Corporation (OTC BB:ABNTQ), Globix Corporation (AMEX:GEX), Motient Corporation (PNK:MNCP) and Horizon Offshore, Inc. He is also a member of the board of directors of Newcastle Holdings, Inc. (PNK:HOFF).</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>There are no family relationships among any of our directors or executive officers.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Executive Officers</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Mr.&nbsp;Mitarotonda
    has served as our President and Chief Executive Officer since May 2006, replacing
    William Fox who resigned as President and Chief Executive Officer and from
    the Board of Directors during that same month. He also served as our President
    and
    Chief
    Executive
Officer from January 2004 to December 17, 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Melvyn Brunt has served as our Chief Financial Officer since January 1, 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As of May 16, 2006, the following persons were serving as our executive officers:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Name</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Age</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Position
        with the Company</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Held
        Office Since</font></b></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>James
        A. Mitarotonda</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="5%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>51</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="45%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>President,
        Chief Executive Officer and Director</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2006</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Melvyn
        Brunt</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>62</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chief
        Financial Officer and Secretary</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p>
    </td>
  </tr>
</table>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Mr.&nbsp;Mitarotonda&#146;s biographical information is detailed above.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Mr.&nbsp;Brunt
    has served as our Chief Financial Officer and Secretary since January 2004.
    He has also served as Chief Financial Officer of Barington Capital Group,
    L.P. since January 2002 and as Chief Financial Officer and Secretary to L
    Q Corporation, Inc. (OTCBB:LQCI.OB) since April 2003. In addition, from January
    2002 to May 2004, he served as Chief Financial Officer and Secretary to MM
    Companies, Inc., now known as George Foreman Enterprises, Inc. (OTCBB:GFME.OB).
    From 1985 to 2001, Mr.&nbsp;Brunt was a Director and Chief Financial Officer
    of Davies Turner &amp; Co., an international freight forwarding company with
    offices throughout the United States. From 1996 to 2001, Mr. Brunt
    was President of Air Mar, Inc. and a Director of TCX International Inc.
    Both of those companies provided logistics support services to a wide variety
    of importing and exporting companies.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Identification of the Audit Committee</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company has a separately-designated standing audit committee established in accordance with the Exchange Act. The members of the audit committee are Raymond Steele and Rory Cowan.</font></p>
<p align="center"><Font size="2" face="serif">15</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Audit
  Committee Financial Expert</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Board has determined that Mr.&nbsp;Steele qualifies as an audit committee financial expert and that he is an independent director under the National Association of Securities Dealers&#146; listing standards and the applicable rules of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;).</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>F.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Executive Compensation</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The information with respect to &#147;Executive Compensation&#148; of Registrant is hereby incorporated by reference to the subsections entitled &#147;Summary Compensation Table,&#148; &#147;Option Grants in Fiscal Year 2005,&#148; &#147;Aggregate Option Exercises in Fiscal Year 2005 and Year End Option Values,&#148; &#147;Director Compensation&#148; and &#147;Performance Graph&#148; in Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>G.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Certain Relationships and Related Transactions</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The information with respect to &#147;Certain Relationships and Related Transactions&#148; of Registrant is hereby incorporated by reference to the subsection entitled &#147;Certain Relationships and Related Transactions&#148; in Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>H.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Legal Proceedings</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The information with respect to &#147;Legal Proceedings&#148; of Registrant is hereby incorporated by reference to the subsection entitled &#147;Contingencies and Legal Proceedings&#148; in Note 5 to the &#147;Notes to Condensed Consolidated Financial Statements&#148; in Registrant&#146;s Form 10-Q for the quarter ended March 31, 2006 filed with the SEC on May 15, 2006.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>I.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Market Price of and Dividends on the Registrant&#146;s Common Equity and Related Stockholder Matters</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Additional information with respect to &#147;Market Price of and Dividends on the Registrant&#146;s Common Equity and Related Stockholder Matters&#148; is hereby incorporated by reference to Item 5 of Part II of Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Market Price of Common Stock</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our common stock was quoted on the NASDAQ National Market under the symbol &#147;FAIM&#148; but it was delisted on June 24, 2004. The following table presents, for the periods indicated, the high and low closing prices per share of our common stock as reported on the NASDAQ National Market and/or the NASDAQ OTC Bulletin Board, as applicable.</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>High</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Low</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Quarter Ended March 31, 2006</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>First Quarter</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.40</font><font size=1>&nbsp;</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.35</font><font size=1>&nbsp;</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Year Ended December 31, 2005 </font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >

      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>First
        Quarter</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.35</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.30</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >

      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Second
        Quarter</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.34</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.30</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Third Quarter </font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.41</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Fourth Quarter</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.41</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.36</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Year Ended December 31, 2004</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >

      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>First
        Quarter</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.44</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.32</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Second Quarter </font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.39</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.30</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >

      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Third
        Quarter</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.26</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Fourth Quarter</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.35</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.27</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>



<p align="center"><Font size="2" face="serif">16</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Our common stock at June 6, 2006 was $0.36. As of March 30, 2006, there were approximately 171 shareholders of record of our common stock. Because many shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>J.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Recent Sales of Unregistered Securities.</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Not applicable.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>K.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Description of Registrant&#146;s Securities to be Registered.</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Not applicable.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>L.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Indemnification of Directors and Officers.</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Section
  145 of the Delaware General Corporation Law (the &#147;DGCL&#148;) permits a
  corporation, under specified circumstances, to indemnify its directors, officers,
  employees or agents against expenses (including attorneys&#146; fees), judgments,
  fines and amounts paid in settlements actually and reasonably incurred by them
  in connection with any action, suit or proceeding brought by third parties by
  reason of the fact that they were or are directors, officers, employees or agents
  of the corporation, if such directors, officers, employees or agents acted in
  good faith and in a manner they reasonably believed to be in or not opposed
  to the best interests of the corporation and, with respect to any criminal action
  or proceeding, had no reason to believe their conduct was unlawful. In a derivative
  action, that is one by or in the right of the corporation, indemnification may
  be made only for expenses actually and reasonably </font><font size=2>incurred
  by directors, officers, employees or agents in connection with the defense or
  settlement of an action or suit, and only with respect to a matter as to which
  they will have acted in good faith and in a manner they reasonably believed
  to be in or not opposed to the best interests of the corporation, except that
  no indemnification will be made if such person will have been adjudged liable
  to the corporation, unless and only to the extent that the court in which the
  action or suit was brought will determine upon application that the defendant
  directors, officers, employees or agents are fairly and reasonably entitled
  to indemnity for such expenses despite such adjudication of liability.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Amended and Restated Certificate of Incorporation of the Registrant provides that the Registrant shall indemnify to the extent permitted by Delaware law any person whom it may indemnify thereunder, including directors, officers, employees and agents of the Registrant. Such indemnification (other than an order by a court) of directors and officers shall be made by the Registrant in accordance with Article V, Section 2 of the By-Laws of the Registrant which information is incorporated herein by reference. Such indemnification (other than an order by a court) of non-officer employees shall by made by the Registrant in accordance with Article V, Section 3 of the By-Laws of the Registrant which information is incorporated herein by reference. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Registrant has entered into indemnification agreements with its officers and directors containing provisions which may require Registrant, among other things, to indemnify its officers and directors against certain liabilities that may arise by reason of their status or service as officers or directors (other than liabilities arising from willful misconduct of a culpable nature) and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified. Registrant also intends to execute such agreements with its future directors and executive officers.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>M.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Financial Statements and Supplementary Data.</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Reference is made to the disclosure set forth under Item 9.01 of this Current Report on Form 8-K, which disclosure is incorporated herein by reference.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font SIZE=2>N.</font></b></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</font></b></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>None.</font></p>



<p align="center"><Font size="2" face="serif">17</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>O.</font></b></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Financial
        Statements and Exhibits.</font></b></p>
    </td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Reference is made to the disclosure set forth under Item 9.01 of this Current Report on Form 8-K, which disclosure is incorporated herein by reference.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Item 5.06. Change in Shell Company Status.</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Registrant
    was a &#147;shell company&#148; (as such term is defined in Rule 12b-2 under
    the Securities Exchange Act of 1934, as amended) immediately before the Acquisition.
    As a result of the Acquisition, Registrant acquired the assets of Southern
    Imaging, Inc., an operating business. Consequently, Registrant believes that
    the Acquisition has caused it to cease to be a shell company. For information
    about the Acquisition, please see the information set forth above under Items
    1.01 and 2.01 of this Current Report on Form 8-K, which information is incorporated
    herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Item 8.06. Other Events.</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On June 26, 2006, Registrant
issued a press release announcing the transaction discussed above. A copy of the press release
is attached hereto as Exhibit 99.1.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In accordance with General
Instruction B.2 on form 8-K, Exhibit 99.1 shall not be deemed to be &#147;filed&#148; for purposes
of Section 18 of the Exchange or otherwise subject to the liability of that section, and shall not
be incorporated by reference into any registration statement or other document filed under
the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth
by specific reference in such filing.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Item 9.01. Financial Statements and Exhibits</font><font size=2>.</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse;' width="100%">
  <tr>
    <td width="35" valign=top style='padding:8.0pt 0in 0in 0in;'>&nbsp;</td>
    <td width="34" valign=top style='padding:8.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>a.</font></p>
    </td>
    <td valign=top style='padding:8.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Financial
        Statements of Business Acquired</font></p>
    </td>
  </tr>
</table>


<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.72in;text-align:left;'><font size=2>Filed herewith are the audited financial statements of Southern Imaging, Inc. for the fiscal years ended December 31, 2005 and December 31, 2004 and the unaudited financial statements for the three month (13 week) periods ended March 31, 2006 and March 31, 2005.</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
    <td width="35" valign=top style='padding:8.0pt 0in 0in 0in;'>&nbsp;</td>
    <td width="34" valign=top style='padding:8.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>b.</font></p>
    </td>
    <td valign=top style='padding:8.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Pro
        Forma financial information</font></p>
    </td>
  </tr>
</table>


<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.72in;text-align:left;'><font size=2>Filed
    herewith are pro forma consolidated financial statements of Registrant
    and Southern Imaging, Inc. for the fiscal year ended December 31, 2005 and
    for the three month period ended March 31, 2006.</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>

    <td width="35" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>d.</font></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Exhibits</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>

    <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>2.1</font></p>
    </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Asset
                Purchase Agreement dated as of June 20, 2006 by and among Southern
                Imaging, Video Solutions, the shareholders of Southern Imaging,
            Costar and VSTC</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>21.1</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Subsidiaries
        </font></p>
    </td>
  </tr>
</table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>23.1</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Consent
        of Ken Hughes &amp; Associates, PC</font></p>
    </td>
  </tr>
</table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="69" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="34" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Press
        Release of Dynabazaar, Inc. dated June 26, 2006</font></p>
    </td>
  </tr>
</table>



<p align="center"><Font size="2" face="serif">18</font></p>
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<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>SIGNATURES</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Pursuant
  to the requirements of the Securities Exchange Act of 1934, Registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'>&nbsp;</p>

<div align="left">

  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="46%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=2>Dated:
          June 26, 2006</font></p>
      </td>
      <td width="2%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><b><font SIZE=2>DYNABAZAAR,
          INC.</font></b></p>
      </td>
    </tr>
    <tr>
      <td width="46%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><br >
          <br >
        </p>
      </td>
      <td width="2%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="5%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=2>&nbsp;By:</font></p>
      </td>
      <td width="46%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><br>
          <font size=2>/s/ James A. Mitarotonda</font></p>
      </td>
    </tr>
    <tr>
      <td width="46%" valign=top ><font size="2">&nbsp;</font></td>
      <td width="2%" valign=top ><font size="2">&nbsp;</font></td>
      <td width="5%" valign=top ><font size="2">&nbsp;</font></td>
      <td width="46%" valign=top >
        <hr noshade width="100%" size="1">
      </td>
    </tr>
    <tr>
      <td width="46%" valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="2%" valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="5%" valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="46%" valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=2>James
          A. Mitarotonda</font><br>
          <font size=2>President and Chief Executive Officer</font></p>
      </td>
    </tr>
  </table>
</div>



<p align="center"><Font size="2" face="serif">19</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Southern Imaging, Inc. and Subsidiary </font></b></p>
<hr noshade width="100%" size="1">
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font SIZE=2>CONTENTS</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Report of Independent Public Accounting Firm</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Audited Financial Statements</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.72in;text-align:left;'><font size=2>Balance Sheets as of December 31, 2005 and December 31, 2004</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.72in;text-align:left;'><font size=2>Statements of Operations &#150; Years ended December 31, 2005 and December 31, 2004</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.72in;text-align:left;'><font size=2>Statements of Cash Flows &#150; Years ended December 31, 2005 and December 31, 2004</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.72in;text-align:left;'><font size=2>Notes to Financial Statements </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Unaudited Financial Statements </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.72in;text-align:left;'><font size=2>Balance Sheets as of March 31, 2006 and March 31, 2005</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.72in;text-align:left;'><font size=2>Statements of Operations &#150; Three month (13 week) periods ended March 31, 2006 and March 31, 2005 </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.72in;text-align:left;'><font size=2>Statements of Cash Flows &#150; Three
month (13 week) periods ended March 31, 2006 and March 31, 2005</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.72in;text-align:left;'><font size=2>Notes to Financial Statements </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Unaudited Pro Forma Financial Statements</font></p>

<p align="center"><Font size="2" face="serif">20</font></p>
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<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><b><font size=2>Ken Hughes &amp; Associates, PC</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=2>Certified Public Accountants &amp; Consultants</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>INDEPENDENT AUDITORS&#146; REPORT</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Southern Imaging, Inc., and Subsidiary</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Board of Directors</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have audited the accompanying consolidated balance sheet of Southern Imaging, Inc., and Subsidiary as of December 31, 2005, and the related consolidated statements of income and accumulated deficit and cash flows for the year then ended. These financial statements are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements based on our audit.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We conducted our audit in accordance with U.S. generally accepted auditing standards. 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 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.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Southern Imaging, Inc., and Subsidiary at December 31, 2005, and the consolidated results of operations and cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>April 5, 2006</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>4880 Long Prairie Rd., Ste. 100 Flower Mound, TX 75028 TEL (972) 221-2500 Fax (972) 436-8887 (800) 221-2509</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>www.fmancialshop.com</font></p>


<p align="center"><Font size="2" face="serif">21</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><b><font size=2>Ken Hughes &amp; Associates, PC</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=2>Certified Public Accountants &amp; Consultants</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>INDEPENDENT AUDITORS&#146; REPORT</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Southern Imaging, Inc., and Subsidiary</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Board of Directors</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have audited the accompanying consolidated balance sheet of Southern Imaging, Inc., and Subsidiary as of December 31, 2004, and the related consolidated statements of income and accumulated deficit and cash flows for the year then ended. These financial statements are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements based on our audit.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We conducted our audit in accordance with U.S. generally accepted auditing standards. 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 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.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Southern Imaging, Inc., and Subsidiary at December 31, 2004, and the consolidated results of operations and cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>July 15, 2005</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>4880 Long Prairie Rd., Ste. 100 Flower Mound, TX 75028 TEL (972) 221-2500 Fax (972) 436-8887 (800) 221-2509</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>www.fmancialshop.com</font></p>

<p align="center"><Font size="2" face="serif">22</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Condensed Consolidated Balance Sheet</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31, 2005</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31, 2004</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><u><font size=2>Assets</font></u></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current assets:</font>                                                                                                                                                                                                                                                                                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash</font>                                                                                                                                                                                                                                                                                                                                                          </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>192</font></p> </td>

    <td align="left" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>151</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accounts receivable, net of an allowance for doubtful accounts of $37,826</font>                                                                                                                                                                                                                                                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,227</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,081</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Inventory</font>                                                                                                                                                                                                                                                                                                                                </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,968</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,645</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Prepaid
            expenses</font>                                                                                                                                                                                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total current assets</font>                                                                                                                                                                                                                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,388</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,880</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Property
                and equipment, net</font>                                                                                                                                                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>83</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>57</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other assets</font>                                                                                                                                                                                                                                                                                                                                         </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>16</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total assets</font>                                                                                                                                                                                                                                                                                                                                           </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,487</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,941</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><u><font size=2>Liabilities and Stockholders&#146; Equity</font></u><u></u></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current liabilities:</font>                                                                                                                                                                                                                                                                                                               </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accounts payable and accrued liabilities</font>                                                                                                                                                             </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>796</font></p> </td>

    <td align="left" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>764</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Related party notes payable</font>                                                                                                                                                                                                                                </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>612</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>612</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Federal income tax payable</font>                                                                                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current portion of long term debt</font>                                                                                                                                                                                                     </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total current liabilities</font>                                                                                                                                                                                                                                                              </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,408</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,388</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Long-term debt, net of current portion </font>                                                                                                                                                                                               </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,490</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,400</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total liabilities</font>                                                                                                                                                                                                                                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,898</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,788</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Stockholders&#146; equity:</font>                                                                                                                                                                                                                               </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>589</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>153</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2> Total stockholders&#146; equity</font>                                                                                                                                                                                     </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>589</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>153</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total liabilities and stockholders&#146; equity </font>                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,487</font></p> </td>

    <td align="left" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,941</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>



<p align="center"><Font size="2" face="serif">23</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Condensed Consolidated Statement of Operations</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31, 2005</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31, 2004</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Revenue</font>                                                                                                                                                                                                                                                                                                                                                             </p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,206</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,467</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cost of goods sold</font>                                                                                                                                                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,955</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,628</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr>
      <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Gross profit</font>                                                                                                                                                                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,251</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,839</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Operating expenses:</font>                                                                                                                                                                                                                                                                                                </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>General and administrative expenses </font>                                                                                                                                                                                 </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,627</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,431</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:34.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total operating expenses</font>                                                                                                                                                                                                                                   </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,627</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,431</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net income from operations</font>                                                                                                                                                                                                                                                         </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>624</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>408</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other income (expense):</font>                                                                                                                                                                                                                                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Interest expense </font>                                                                                                                                                                                                                                                                                           </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(182</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(164</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other expense </font>                                                                                                                                                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total other income (expense) </font>                                                                                                                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(183</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(151</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net income before provision for Federal income tax </font>                                                                                                                           </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>441</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>257</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Provision for Federal income tax-currently payable </font>                                                                                                                              </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(10</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net income</font>                                                                                                                                                                                                                                                                                                                                    </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>439</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>247</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>



<p align="center"><Font size="2" face="serif">24</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Statement of Cash Flows</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31, 2005</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>December 31, 2004</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash flows from operating activities:</font>                                                                                                                                                                                                           </p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>438</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td width="8%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>248</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net income</font>                                                                                                                                                                                                                                                                                                                                     </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Adjustments to reconcile net income to net cash provided by operating activities: </font>                                                                                                                                                                                                                                                                                                                                </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Depreciation and amortization</font>                                                                                                                                                                                                                       </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Bad debts</font>                                                                                                                                                                                                                                                                                                                                </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>32</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>173</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Change in operating accounts:</font>                                                                                                                                                                                                                              </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase in accounts receivable</font>                                                                                                                                                                                                               </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(178</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(406</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase in inventory</font>                                                                                                                                                                                                                                                                     </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(323</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(187</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Decrease in prepaid expenses</font>                                                                                                                                                                                                                         </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>28</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase (decrease) in Federal income taxes payable</font>                                                                                                    </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase (decrease) in accounts payable and accrued liabilities</font>                                           </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>32</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(100</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>429</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(472</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net cash provided by operating activities </font>                                                                                                                                                                  </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(224</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash flows from investing activities:</font>                                                                                                                                                                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Payment on non-compete agreement</font>                                                                                                                                                                                    </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(13</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Purchase of property and equipment</font>                                                                                                                                                                                    </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(38</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(16</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net cash used in investing activities</font>                                                                                                                                                                                                </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(51</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(16</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash flows from financing activities:</font>                                                                                                                                                                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Proceeds from notes payable</font>                                                                                                                                                                                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>200</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>290</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Purchase of treasury stock</font>                                                                                                                                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Repayments of notes payable </font>                                                                                                                                                                                                                     </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(114</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(43</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
      <tr>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
        <td colspan="2" valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <hr noshade width="100%" color="Gray" size="1">
        </td>
        <td valign=top >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
        </td>
      </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net cash provided by financing activities</font>                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>83</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>247</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net increase in cash</font>                                                                                                                                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>41</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash at beginning of year </font>                                                                                                                                                                                                                                                                 </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>151</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>145</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash at end of year</font>                                                                                                                                                                                                                                                                                                      </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>192</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>151</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Supplemental disclosure:</font>                                                                                                                                                                                                                                                                        </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash paid for interest </font>                                                                                                                                                                                                                                                                            </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>182</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>164</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash paid for taxes </font>                                                                                                                                                                                                                                                                                         </p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>See accompanying notes to financial statements.</font></p>

<p align="center"><Font size="2" face="serif">25</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies, continued</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Revenue recognition</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The financial statements are presented on the accrual basis of accounting. Sales revenues are recognized upon the shipment of merchandise to customers. Allowances for sales returns are recorded as a component of net sales in the period the allowance is recognized.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Freight costs</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Freight costs are included in cost of goods sold and expensed as incurred. Total freight and shipping expense for the year ended December 31, 2005 was approximately $176,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Federal income taxes</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>No provision or liability for Federal income tax has been recorded by the parent company, Southern Imaging, Inc. As a Subchapter S corporation, stockholders of Southern Imaging, Inc. are taxed on their proportionate share of the Company&#146;s taxable income as provided by the rules of the Internal Revenue Code.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable by the subsidiary, Video Solutions Technology Center, Inc.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Advertising expense</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Advertising costs are expensed as incurred. Advertising expense amounted to approximately $55,000 for the year ended December 31, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note B - Lines of credit</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company maintained a line of credit agreement with First National Bank. The agreement provided for a revolving line of credit aggregating $1,700,000 for working capital purposes, which matured April 1, 2006. The agreement is secured by a first lien security interest in all unencumbered assets of the Company and Subsidiary and guaranteed by the owners of the Company. Interest is payable monthly at a floating variable interest rate of prime plus 1%. The agreement requires maintenance of financial ratios and certain covenants, including minimum tangible net worth, which increases quarterly. As of December 31, 2005, the Company had a balance of $1,490,000 drawn on the line, and the prime rate was 7.25%.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In February 2006, the outstanding balance of the First National Bank line of credit was transferred to a line of credit agreement with Bank of Texas. The Bank of Texas line has a limit of $2,500,000, carries an interest rate equal to the BOKF National Prime Rate, and matures January 2007. The line is secured by all assets of the Company and limited personal guarantees of four of the stockholders of the Company. The agreement requires maintenance of financial ratios and certain covenants and monthly payments of accrued interest calculated on the outstanding balance at the variable rate described above.</font></p>
<p align="center"><Font size="2" face="serif">26</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note C - Related party notes payable</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and subsequently to the Bank of Texas line. The balance of the note as of December 31, 2005 was $570,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    note agreement to Jim Pritchett requires monthly interest payments at 12%
    and is secured by all assets of the Company, tangible and intangible, subordinated
    only to liens and covenants of the line of credit with First National Bank,
    and subsequently to the Bank of Texas line, and the note to Arthur Thompson.
The balance of the note as of December 31, 2005 was $42,160.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note D Concentrations</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Major customer</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Sales for 2005 include sales to one major customer. The major customer accounted for 14% of total company sales. Accounts receivable from this customer totaled 12% of total receivables as of December 31, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Major suppliers</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Inventory purchases for the year ended December 31, 2005 included purchases from three major suppliers that accounted for 22%, 15% and 10% of total inventory purchases. Management believes no risk is present under this arrangement due to other suppliers being readily available.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note E - Operating leases </font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company leases office and warehouse facilities in Texas and California under operating lease agreements with lease terms through February 2011. The leases require a monthly base rental payment plus an additional charge for common area maintenance and operating expenses.</font></p>
<p align="center"><Font size="2" face="serif">27</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note E - Operating leases, continued</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Future minimum rentals payable, including the new agreements, are as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align="Center">

  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="80%">
    <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Year</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td colspan="2" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Amount</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2006</font></p> </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td width="1%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td width="8%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>72,766</font></p>
      </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2007</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>64,473</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2008</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,734</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2009</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>73,583</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2010</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>89,288</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>370,844</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Rent
  expense included in the accompanying statement of income and accumulated deficit
  for the year ended December 31, 2005 was $57,853.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note F - Letter of Intent</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In September 2005, the Company entered into a letter of intent under which the purchaser would acquire substantially all assets of the Company and subsidiary in exchange for retirement of Company debt, cash, and stock options in the purchasing entity for key employees.</font></p>
<p align="center"><Font size="2" face="serif">28</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Nature of operations</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Southern
    Imaging, Inc. (&#147;the Company&#148;) is a Subchapter S corporation organized
    in Texas on August 5, 1997. The Company&#146;s wholly owned subsidiary, Video
    Solutions Technology Center, Inc., is a Nevada corporation formed in January
    1997 and operates in California. The Company designs, sources and distributes
    innovative video and imaging products for the biomedical, industrial and
    security markets.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Principles of consolidation</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    consolidated financial statements as of and for the year ended December 31,
    2005 include the accounts of Southern Imaging, Inc. and Video Solutions Technology
    Center, Inc. after elimination of all material intercompany accounts and
    transactions.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Use of estimates</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The preparation of financial statements in conformity 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=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Cash and cash equivalents</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Concentrations of credit risk</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company maintains its cash balances in one financial institution. The Federal Deposit Insurance Corporation insures the balances up to $100,000. At December 31, 2005, the uninsured balance totaled approximately $68,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Accounts receivable</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>It is the policy of management to review the outstanding accounts receivable at year end, as well as the bad debt write offs experienced in the past, and establish an allowance for doubtful accounts. As of December, 31, 2005, the allowance for doubtful accounts amounted to $37,826.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Inventory</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Inventory is stated at the lower of cost or market. Cost is determined using the average cost method.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Property and equipment</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Property and equipment are recorded at cost and depreciated using the straight-line method for financial reporting purposes over estimated useful lives of 3-10 years.</font></p>
<p align="center"><Font size="2" face="serif">29</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2004</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies, continued</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Revenue recognition</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The financial statements are presented on the accrual basis of accounting. Sales revenues are recognized upon the shipment of merchandise to customers. Allowances for sales returns are recorded as a component of net sales in the period the allowance is recognized.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Freight costs</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Freight costs are included in cost of goods sold and expensed as incurred. Total freight and shipping expense for the year ended December 31, 2004 was $199,652.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Federal income taxes</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>No provision or liability for Federal income tax has been recorded by the parent company, Southern Imaging, Inc. As a Subchapter S corporation, stockholders of Southern Imaging, Inc. are taxed on their proportionate share of the Company&#146;s taxable income as provided by the rules of the Internal Revenue Code.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Income taxes are provided for the tax effects of transactions reported in the financial Statements and consist of taxes currently payable by the subsidiary, Video Solutions Technology Center, Inc.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Advertising expense</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Advertising costs are expensed as incurred. Advertising expense amounted to $56,610 for the year ended December 31, 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note B - Lines of credit</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company maintains a line of credit agreement with First National Bank. The agreement provides for a revolving line of credit aggregating $1,700,000 for working capital purposes, which matures April 1, 2006. The agreement is secured by a first lien security interest in all unencumbered assets of the Company and Subsidiary and guaranteed by the owners of the Company. Interest is payable monthly at a floating variable interest rate of prime plus 1%. The agreement requires maintenance of financial ratios and certain covenants, including minimum tangible net worth, which increases quarterly. As of December 31, 2004, the Company had a balance of $1,390,000 drawn on the line.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, the Company maintains a $25,000 line of credit with Compass Bank. The agreement is unsecured and requires minimum monthly payments of $50 or 2% of the principal balance. Interest is calculated at a floating variable interest rate of prime plus 1%. The outstanding principal balance at December 31, 2004 was $13,831.</font></p>
<p align="center"><Font size="2" face="serif">30</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2004</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note B - Lines of credit, continued</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Maturities of long-term debt are as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align="Center">

  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="80%">
    <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Year ending</font></b><br> <b><font size=1>December 31</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td colspan="2" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Amount</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2005</font></p> </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td width="1%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

      <td width="8%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,756</font></p>
      </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2006</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,393,948</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2007</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,150</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2008</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,977</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,403,831</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>At December 31, 2004, the prime rate was 5.25%.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note C - Related party bores payable</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank. The balance of the note as of December 31, 2004 was $570,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Jim Pritchett requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and the note to Arthur Thompson. The balance of the note as of December 31, 2004 was $42,160.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note D - Concentrations</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Major customer</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Sales for 2004 include sales to one major customer. The major customer accounted for 9% of total company sales. Accounts receivable, from this customer totaled 14% of total receivables as of December 31, 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Major suppliers</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Inventory purchases for the year ended December 31, 2004 included purchases from three major suppliers that accounted for 17%, 13% and 11% of total inventory purchases. Management believes no risk is present under this arrangement due to other suppliers being readily available.</font></p>
<p align="center"><Font size="2" face="serif">31</font></p>
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<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2004</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note E - Operating leases</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The company leases office and warehouse facilities in Texas and California under operating lease agreements with lease terms through February 2011. The leases require a monthly base rental, payment plus an additional charge for common area maintenance and operating expenses.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>During 2004, the Company extended its lease in California through September 2006.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In June 2005, the Company entered into a 66 month operating lease agreement for office and warehouse space in Carrollton, Texas commencing September 1, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Future minimum rentals payable, including the new agreements, are as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align="Center">

  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="80%">
    <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Year</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td colspan="2" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Amount</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2005</font></p> </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td width="1%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>

      <td width="8%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>49,923</font></p>
      </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2006</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>72,766</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2007</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>64,473</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2008</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,734</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2009</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>73,583</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Thereafter</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>89,288</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>420,767</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Rent expense included in the accompanying statement of income and accumulated deficit for the year ended December 31, 2004 was $63,319.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note F - Letter of Intent</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In June 2005, the Company entered into a letter of intent under which the purchaser would acquire all assets of the Company and subsidiary in exchange for cash and stock in the purchasing entity.</font></p>
<p align="center"><Font size="2" face="serif">32</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><b><font size=2>Ken Hughes &amp; Associates, PC</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Certified Public Accountants &amp; Consultants</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>INDEPENDENT AUDITORS&#146; REPORT</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Southern Imaging, Inc., and Subsidiary</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Board of Directors</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>We have reviewed the accompanying consolidated balance sheet of Southern Imaging, Inc., and subsidiary as of March 31, 2006, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in this financial statement is the representation of the management Southern Imaging, Inc.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with U.S. generally accepted auditing standards the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>Because we were not engaged to review the consolidated statements of income, accumulated deficit, and cash flows, we did not extend our review procedures to enable us to express assurance on the results of operations and cash flows for the three months ended March 31, 2006. Accordingly, we express no assurance on them.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>Based on our review, we are not aware of any material modifications that should be made to the accompanying balance sheet in order for it to be in conformity with U. S. generally accepted accounting principles.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>June 7, 2006</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>4880 Long Prairie Rd., Ste. 100 Flower Mound, Texas 75028</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>TEL (972) 221-2500 (800) 221-2509 FAX (972) 436-8887</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>www.fmancialshop.com</font></u></p>
<p align="center"><Font size="2" face="serif">33</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><b><font size=2>Ken Hughes &amp; Associates, PC</font></b></i></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Certified Public Accountants &amp; Consultants</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>INDEPENDENT AUDITORS&#146; REPORT</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Southern Imaging, Inc., and Subsidiary</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Board of Directors</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>We have reviewed the accompanying consolidated balance sheet of Southern Imaging, Inc., and subsidiary as of March 31, 2005, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in this financial statement is the representation of the management Southern Imaging, Inc.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with U.S. generally accepted auditing standards the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>Because we were not engaged to review the consolidated statements of income, accumulated deficit, and cash flows, we did not extend our review procedures to enable us to express assurance on the results of operations and cash flows for the three months ended March 31, 2005. Accordingly, we express no assurance on them.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>Based on our review, we are not aware of any material modifications that should be made to the accompanying balance sheet in order for it to be in conformity with U.S. generally accepted accounting principles.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.36in;text-align:left;'><font size=2>June 7, 2006</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>4880 Long Prairie Rd., Ste. 100 Flower Mound, Texas 75028</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>TEL (972) 221-2500 (800) 221-2509 FAX (972) 436-8887</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>www.fmancialshop.com</font></u></p>
<p align="center"><Font size="2" face="serif">34</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>










<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Condensed Consolidated Balance Sheet</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>(Unaudited - see accountants&#146; report)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse;'>
  <tr>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March
        31, 2006</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March
        31, 2005</font></b></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2><u>Assets</u></font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current
        assets:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>295</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>28</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accounts
        receivable, net of an allowance for doubtful accounts of $49,808 and $45,755</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,193</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>991</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Inventory</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,143</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,813</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Prepaid
        expenses</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>35</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr size="1" noshade>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>

    </td>
    <td valign=top >
      <hr size="1" noshade>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>

    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        current assets</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,654</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,867</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>84</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>59</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Property
        and equipment:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other
        assets</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        assets</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,741</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,930</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2><u>Liabilities
        and Stockholders&#146; Equity</u></font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current
        liabilities:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accounts
        payable and accrued liabilities</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,523</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>627</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Related
        party notes payable</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>612</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>612</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Line
        of credit</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,863</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,503</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        current liabilities</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,998</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,742</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        liabilities</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,998</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,742</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Stockholders&#146;
        equity:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        stockholders&#146; equity</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>743</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>188</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        liabilities and stockholders&#146; equity</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,741</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,930</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
  </tr>
</table>



<p align="center"><Font size="2" face="serif">35</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Statement of Operations </font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>For the Three Months Ended </font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>(Unaudited - see accountants&#146; report)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse;'>
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March 31, 2006</font></b></p> </td>
        <td valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March 31, 2005</font></b></p> </td>
        <td valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td width="2%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td width="2%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Revenue</font></p> </td>
        <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
        <td width="9%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,754</font></p> </td>
        <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
        <td width="9%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,716</font></p> </td>
        <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cost of goods sold</font></p> </td>
        <td valign=bottom >
          <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
          <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
          <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,932</font></p> </td>
        <td valign=bottom >
          <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
          <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,241</font></p> </td>
        <td valign=bottom >
          <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Gross profit</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>822</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>475</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Operating expenses:</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>430</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>367</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>General and administrative expenses</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>430</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>367</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total operating expenses</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net income from operations</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>392</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>108</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other income (expense):</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Interest expense</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(76</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(50</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:24.55pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total other income (expense)</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(76</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(50</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net income</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>316</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>58</font></p> </td>
        <td valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="2"> </td>
        <td valign=top >
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>



<p align="center"><Font size="2" face="serif">36</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Statement of Cash Flows</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>For the Three Months Ended </font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>(Unaudited - see accountants&#146; report)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse;'>
  <tr>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March
        31, 2006</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>March
        31, 2005</font></b></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        flows from operating activities:</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:25.6pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
        Income</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>315</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>59</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:25.6pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Adjustments
        to reconcile net income to net cash used in operating activities:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Depreciation
        and amortization</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Bad
        debts</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>19</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:25.6pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Change
        in operating accounts:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase
        in accounts receivable</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(985</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>89</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase
        in inventory</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(174</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(167</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase
        in prepaid expenses</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(23</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(32</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Decrease
        in Federal income taxes payable</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(8</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Increase
        in accounts payable and accrued liabilities</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>566</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(161</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%" color="Gray" size="1"></td>
    <td valign=top >
      <hr noshade width="100%" color="Gray" size="1"></td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(579</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(276</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:25.6pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
        cash used in operating activities </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(264</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(217</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        flows from investing activities:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Purchase
        of property and equipment</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(6</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:36.85pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
        cash used in investing activities</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(6</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        flows from financing activities:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Proceeds
        from line of credit</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,863
        </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:47.5pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Repayments
        of line of credit</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,490</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:25.6pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
        cash provided by financing activities</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>373</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>99
        </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
        increase (decrease) in cash </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>103</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(123</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        at beginning of period </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>192</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>151</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="1">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        at end of period</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>295</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>28</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="2">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="2">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="2">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
      <hr noshade width="100%" color="Gray" size="2">
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size="2">Supplemental
        disclosure:</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:36.85pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        paid for interest </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>76</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>42</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:36.85pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash
        paid for taxes </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=bottom ><font size="2" face="Times New Roman, Times, serif">Non-cash
      investing and financing activities:</font></td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom >
      <p style='margin-left:25.6pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accrued
        distributions to stockholders </font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>161</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24</font></p>
    </td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
</table>



<p align="center"><Font size="2" face="serif">37</font></p>
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<div style="page-break-before:always"></div><page>







<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2006</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Nature of operations</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Southern Imaging, Inc. (&#147;the Company&#148;) is a Subchapter S corporation organized in Texas on August 5, 1997. The Company&#146;s wholly owned subsidiary, Video Solutions Technology Center, Inc. is a Nevada corporation formed in January 1997 and operates in California. The Company designs, sources and distributes innovative video and imaging products for the biomedical, industrial and security markets.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Principles of consolidation</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The consolidated financial statements as of and for the three months ended March 31, 2006, include the accounts of Southern Imaging, Inc. and Video Solutions Technology Center, Inc. after elimination of all material intercompany accounts and transactions.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Use of estimates</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The preparation of financial statements in conformity 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=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Cash and cash equivalents</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Concentrations of credit risk</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company maintains its cash balances in one financial institution. The Federal Deposit Insurance Corporation insures the balances up to $100,000. At March 31, 2006, the uninsured balance totaled approximately $207,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Accounts receivable</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>It is the policy of management to review the outstanding accounts receivable at year end, as well as the bad debt write offs experienced in the past, and establish an allowance for doubtful accounts. As of March 31, 2006, the allowance for doubtful accounts amounted to $49,808.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Inventory</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Inventory is stated at the lower of cost or market. Cost is determined using the average cost method.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Property and equipment</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Property and equipment are recorded at cost and depreciated using the straight-line method for financial reporting purposes over estimated useful lives of 3-10 years.</font></p>

<p align="center"><Font size="2" face="serif">38</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2006</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies, continued</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Federal income taxes</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>No
    provision or liability for Federal income tax has been recorded by the parent
    company, Southern Imaging, Inc. As a Subchapter S corporation, stockholders
    of Southern Imaging, Inc. are taxed on their proportionate share of the Company&#146;s
    taxable income as provided by the rules of the Internal Revenue Code.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Income
    taxes are provided for the tax effects of transactions reported in the financial
    statements and consist of taxes currently payable by the subsidiary, Video
    Solutions Technology Center, Inc. For the period ended March 31, 2006, there
was no Federal income tax payable by the subsidiary.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note B - Line of credit</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In February 2006, the Company executed a line of credit agreement with Bank of Texas. The Bank of Texas line has a limit of $2,500,000, carries an interest rate equal to the BOKF National Prime Rate, and matures January 2007. The line is secured by all</font><b><font size=2> </font></b><font size=2>assets of the Company and limited personal guarantees of four of the stockholders of the Company. The agreement requires maintenance of financial ratios and certain covenants and monthly payments of accrued interest calculated on the outstanding balance at the variable rate described above.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note C - Related party notes payable</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and subsequently to the Bank of Texas line. The balance of the note as of March 31, 2006, was $570,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Jim Pritchett requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank, and subsequently to the Bank of Texas line, and the note to Arthur Thompson. The balance of the note as of March 31, 2006 was $42,160.</font></p>

<p align="center"><Font size="2" face="serif">39</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2006</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note D - Concentrations</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Major customer</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Accounts receivable on the accompanying balance sheet includes receivables for sales to two major customers. The major customers accounted for 15% and 14% of total company receivables at March 31, 2006.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Major suppliers</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Accounts payable as of March 31, 2006, includes payables for purchases from four major suppliers that accounted for 42%, 15%, and two at 10% each of total accounts payable. Management believes no risk is present under this arrangement due to other suppliers being readily available.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Note E - Operating leases</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company leases office and warehouse facilities in Texas and California under operating lease agreements with lease terms through February 2011. The leases require a monthly base rental payment plus an additional charge for common area maintenance and operating expenses.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Future minimum rentals payable, including the new agreements, are as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align="Center">

  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="80%">
    <tr>
        <td align="left" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Year</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td colspan="2" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Amount</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td width="30%" valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2007</font></p> </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td width="1%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>

      <td width="8%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>73,585</font></p>
      </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2008</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,718</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2009</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>72,689</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2010</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>75,086</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2011</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,158</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>362,236</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p align="center"><Font size="2" face="serif">40</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Nature of operations</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Southern
    Imaging, Inc. (&#147;the Company&#148;) is a Subchapter S corporation organized
    in Texas on August 5, 1997. The Company&#146;s wholly owned subsidiary, Video
    Solutions Technology Center, Inc., is a Nevada corporation formed in January
    1997 and operates in California. The Company designs, sources and distributes
    innovative video and imaging products for the biomedical, industrial and
    security markets.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Principles of consolidation</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    consolidated financial statements as of and for the three months ended March
    31, 2006 include the accounts of Southern Imaging, Inc. and Video Solutions
    Technology Center, Inc. after elimination of all material intercompany accounts
    and transactions.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Use of estimates</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The preparation of financial statements in conformity 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=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Cash and cash equivalents</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company considers all highly liquid investments with maturities of three months or less</font><b><font size=2> </font></b><font size=2>when purchased to be cash equivalents.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Accounts receivable</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>It is the policy of management to review the outstanding accounts receivable at year end, as well as the bad debt write offs experienced in the past, and establish an allowance for doubtful accounts. As of March 31, 2005, the allowance for doubtful accounts amounted to $45,755.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Inventory</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Inventory is stated at the lower of cost or market. Cost is determined using the average cost method.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Property and equipment</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Property and equipment are recorded at cost and depreciated using the straight-line method for financial reporting purposes over estimated useful lives of 3-10 years.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Federal income taxes</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>No provision or liability for Federal income tax has been recorded by the parent company Southern Imaging, Inc. As a Subchapter S corporation, stockholders of Southern Imaging, Inc. are taxed on their proportionate share of the Company&#146;s taxable income as provided by the rules of the Internal Revenue Code.</font></p>

<p align="center"><Font size="2" face="serif">41</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note A - Summary of significant accounting policies, continued</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Federal income taxes, continued</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable by the subsidiary, Video Solutions Technology Center, Inc. For the period ended March 31, 2005, there was no Federal income tax payable by the subsidiary.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note B - Lines of credit</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company maintains a line of credit agreement with First National Bank. The agreement provides for a revolving line of credit aggregating $1,700,000 for working capital purposes, which matures April 1, 2006. The agreement is secured by a first lien security interest in all unencumbered assets of the Company and Subsidiary and guaranteed by the owners of the Company. Interest is payable monthly at a floating variable interest rate of prime plus 1%. The agreement requires maintenance of financial ratios and certain covenants, including minimum tangible net worth, which increases quarterly. As of March 31, 2005, the Company had a balance of $1,490,000 drawn on the line.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, the Company maintains a $25,000 line of credit with Compass Bank. The agreement is unsecured and requires minimum monthly payments of $50 or 2% of the principal balance. Interest is calculated at a floating variable interest rate of prime plus 1%. The outstanding principal balance at March 31, 2005, was $12,947.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note C -Related party notes payable</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and subsequently to the Bank of Texas line. The balance of the note as of March 31, 2005 was $570,000.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The note agreement to Jim Pritchett requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank, and subsequently to the Bank of Texas line, and the note to Arthur Thompson. The balance of the note as of March 31, 2005 was $42,160.</font></p>

<p align="center"><Font size="2" face="serif">42</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Southern Imaging, Inc. and Subsidiary</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Consolidated Notes to Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note D - Concentrations</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Major customer</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Accounts receivable on the accompanying balance sheet includes receivables for sales to two major customers. The major customers accounted for 11% and 14% of total company receivables at March 31, 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><font size=2>Major suppliers</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Accounts payable as of March 31, 2005, includes payables for purchases from four major suppliers that accounted for 22%, 13%, 12%, and 11% each of total accounts payable. Management believes no risk is present under this arrangement due to other suppliers being readily available.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note E - Operating leases</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In September 2005, the Company executed an operating lease agreement for office and warehouse facilities in Texas. The Company also leases space in California under operating lease agreements. The leases require a monthly base rental payment plus an additional charge for common area maintenance and operating expenses.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Future minimum rentals payable, including the new agreements, are as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align="Center">

  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="80%">
    <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Year</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td colspan="2" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Amount</font></b></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td width="30%" valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2006</font></p> </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td width="1%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>

      <td width="8%" valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>33,959</font></p>
      </td>

      <td width="2%" valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2007</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>73,585</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2008</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,718</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2009</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>72,689</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>2010</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>75,086</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Thereafter</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,158</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>396,195</font></p> </td>

      <td valign=bottom >
        <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

      <td valign=top >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Note F - Subsequent event</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In
    February 2006, the Company executed a line of credit agreement with Bank
    of Texas. The Bank of Texas line has a limit of $2,500,000, carries an interest
    rate equal to the BOKF National Prime Rate, and matures January 2007. The
    line is secured by all assets of the Company and limited personal guarantees
    of
    four of the stockholders of the Company. The agreement requires maintenance
    of financial ratios and certain covenants and monthly payments of accrued
    interest calculated on the outstanding balance at the variable rate described
    above.</font></p>

<p align="center"><Font size="2" face="serif">43</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Dynabazaar, Inc</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Unaudited Pro Forma Condensed Consolidated Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Dollars in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Introduction</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On
    June 20, 2006, Dynabazaar, Inc. (the &#147;Company&#148;) completed the
    acquisition of principally all of the assets of Southern Imaging, Inc.
	and its wholly owned subsidiary Video Solutions Technology Center, Inc. (collectively, &#147;Southern
    Imaging&#148;), which together design, source,  distribute and repair video imaging products
    for the industrial and security markets. The net assets acquired primarily
    include receivables, inventories and other identifiable intangible assets
    net of certain current liabilities.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    following unaudited pro forma financial statements give effect to the acquisition
    of the assets of Southern Imaging, assuming that the transaction took place
    as of March 31, 2006. The pro forma adjustments are described in the accompanying
    notes to the unaudited pro forma condensed consolidated financial statements.
    Such unaudited pro forma condensed  consolidated  financial statements should
    be read
in conjunction with Southern Imaging&#146;s financial statements and notes included
herein for the year ended December 31, 2005 and the three month (13 week) period
ended March 31, 2006.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Under
    the purchase method of accounting, the purchase price is allocated to the
    underlying tangible and intangible assets acquired and liabilities assumed
    based on their respective fair market values, with the excess recorded as
    goodwill. These unaudited pro forma condensed consolidated financial statements
    reflect preliminary estimates of fair market value of the assets acquired
    and liabilities assumed in the acquisition, including preliminary valuations
    of intangible assets and property and equipment. The final determination
    of the fair market value of assets acquired and liabilities assumed and final
    allocation of the purchase price may differ from the amounts assumed in these
    unaudited pro forma condensed  consolidated  financial statements, and there
    can
be no assurance that any adjustments will not be material.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    unaudited pro forma condensed consolidated financial statements are provided
    for illustrative purposes only and do not purport to represent what the actual
    consolidated results of operations of the consolidated financial position
    of the Registrant would have been had the acquisition of Southern Imaging
    been consummated on March 31, 2006 nor are they necessarily indicative of
future consolidated results of operations of financial position.</font></p>

<p align="center"><Font size="2" face="serif">44</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>











<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font SIZE=2>DYNABAZAAR, INC</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>UNAUDITED PRO-FORMA CONDENSED CONSOLIDATED BALANCE SHEET</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands)</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>March 31, 2006</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr style='height:28.5pt;'>
        <td valign=bottom style=' height:28.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>DYNABAZAAR</font></b></p> </td>

    <td valign=bottom style=' height:28.5pt;'>&nbsp;</td>
    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>SOUTHERN</font></b></p>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>IMAGING</font></b></p> </td>

    <td valign=bottom style=' height:28.5pt;'>&nbsp;</td>
    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>ADJUSTMENTS</font></b></p> </td>

    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom style=' height:28.5pt;'>&nbsp;</td>
    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>CONSOLIDATED</font></b></p> </td>

    <td valign=bottom style=' height:28.5pt;'>
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr> <tr>
    <td valign=bottom >
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2><u>Assets:</u></font></p> </td>

    <td width="2%" valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="10%" valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="2%" valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="10%" valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="2%" valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="10%" valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td width="10%" valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >
    <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
      <td valign=bottom >
          <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current
              assets:</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cash</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,005</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>295</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5,402</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom ><font size=2>$</font></td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,498</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accounts receivable, net</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,193</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,193</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Inventory</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,143</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,143</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>379</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>402</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>

	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr>
      <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total current assets</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,384</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,654</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5,402</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8,636</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Long term pre-paid expenses</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>913</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>913</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Property and equipment net</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>84</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>84</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Goodwill</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,259</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,259</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Intangible assets</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	  	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr>

	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total assets</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,297</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,741</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,143</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,895</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>
	  	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr>


	  <tr>
        <td valign=bottom >

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Liability
        &amp; Stockholders&#146; Equity</font></p>
    </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Current liabilities</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Accounts payable</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,328</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,328</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Long term debt &amp; notes payable</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,475</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2,475</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,863</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other accrued expenses</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>134</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>196</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>330</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total liabilities</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>134</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,999</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td align="right" valign=bottom >
      <font size=2>(2,475</font></td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,653</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>
	 	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr>
	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Stockholders&#146; equity</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,163</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>742</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2,475</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,237</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>


	  	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr>

	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
            liabilities and shareholders equity</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,297</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,741</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,143</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,895</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>


	  	      <tr>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
	        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
	        <td valign=bottom >&nbsp;</td>
  </tr>

</table>


<p align="center"><Font size="2" face="serif">45</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font SIZE=2>DYNABAZAAR, INC </font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>UNAUDITED
PRO-FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in thousands) </font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>For the Three Month Period Ending March 31, 2006</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>DYNABAZAAR</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>SOUTHERN</font></b><br> <b><font SIZE=1>IMAGING</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td align="center" valign=bottom ><b><font SIZE=1>PRO FORMA<br>
ADJUSTMENT</font></b></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>CONSOLIDATED</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >&nbsp;</td>
        <td width="1%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >&nbsp;</td>
    <td width="1%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >&nbsp;</td>
    <td width="1%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >&nbsp;</td>
    <td width="2%" valign=top >&nbsp;</td>
    <td width="1%" valign=top >&nbsp;</td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Revenues</font></p> </td>

        <td width="2%" valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font><font size=2>$</font></p> </td>

    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,753</font></p> </td>

    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font><font size=2>$</font></p> </td>

    <td width="10%" align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom ><font size=2>$</font></td>
    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,753</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cost of revenues</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,932</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,932</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
      <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><b><font size=2>Gross profit</font></b></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>&#151;</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>821</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>821</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Operating expenses:</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td align="right" valign=bottom >&nbsp;</td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>General &amp; administrative</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>215</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>430</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>645</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><b><font size=2>Total operating expenses</font></b></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>215</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>430</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>645</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Income (loss) from operations</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(215</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>
    <td valign=bottom >&nbsp;</td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>391</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>176</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Interest</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>103</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(76</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>
    <td valign=bottom >&nbsp;</td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>27</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><b><font size=2>Net
                  income (loss) before income tax expense</font></b></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(112</font></b></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>)</font></b></p> </td>
    <td valign=bottom >&nbsp;</td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>315</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td align="right" valign=bottom ><font size=2>&#151;</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>203</font></b></p> </td>

    <td valign=bottom >
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>

<tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Income
                Tax Expense</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2></font></p> </td>
    <td valign=bottom >&nbsp;</td>

    <td align="right" valign=bottom ><font size=2>(81</font></td>
    <td width="2%" valign=bottom ><font size="2">)</font></td>
    <td width="1%" valign=bottom >&nbsp;</td>

    <td align="right" valign=bottom ><font size=2>(81</font></td>
    <td width="2%" valign=bottom ><font size="2">)</font></td>
</tr>
      <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
<tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
                Income (loss)</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >
          <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(112</font></p>
        </td>
        <td valign=bottom >
          <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p>
        </td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
    <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>315</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2></font></p> </td>
    <td valign=bottom >&nbsp;</td>

    <td align="right" valign=bottom ><font size=2>(81</font></td>
    <td width="2%" valign=bottom ><font size="2">)</font></td>
    <td width="1%" valign=bottom >&nbsp;</td>

    <td align="right" valign=bottom ><font size=2>122</font></td>
    <td width="2%" valign=bottom >&nbsp;</td>
</tr>
      <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
</table>


<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Notes to Unaudited Pro Forma Condensed Combined Financial Statements</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>1.
    To record the cash utilized to purchase the assets of Southern Imaging, including
    related fees of approximately
  $400. The fees include $110 paid to Barington Capital Group, L.P., a Stockholder
    of Dynabazaar, Inc., for investment banking services rendered.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>2.
  To reflect the payment of certain notes payable.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>3.
  To reflect the excess of acquisition cost over the estimated fair value of net
  assets acquired (i.e. Goodwill), based on a preliminary purchase price allocation,
  which is subject to independent valuation prior to finalization.</font></p>
<p align="center"><Font size="2" face="serif">46</font></p>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font SIZE=2>DYNABAZAAR. INC,</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2> UNAUDITED
PRO-FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(in
  thousands) </font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>December 31, 2005</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>DYNABAZAAR</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>SOUTHERN</font></b><br> <b><font SIZE=1>IMAGING</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>ADJUSTED</font></b></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font SIZE=1>CONSOLIDATED</font></b></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >&nbsp;</td>
        <td width="1%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=top >&nbsp;</td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=top >&nbsp;</td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td valign=top >&nbsp;</td>
    <td width="1%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><hr noshade width="100%" color="Gray" size="1"> </td>

    <td width="4%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Revenues</font></p> </td>

        <td width="2%" valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom ><font size=2>$</font></td>
    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,206</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom ><font size=2>$</font></td>
    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td width="2%" valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font><font size=2>$</font></p> </td>

    <td width="10%" valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,206</font></p> </td>

    <td width="2%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Cost of revenues</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,955</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,955</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
      <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Gross profit</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,251</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,251</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>

	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Operating
                expenses:</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>General &amp; administrative</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,119</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,627</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,746</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>

	  <tr>
        <td valign=bottom >

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Total
        operating expenses</font></p>
    </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,119</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,627</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,746</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>

	  <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Income (loss) from operations</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,119</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>623</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(496</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Interest</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>375</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(182</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>193</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Gain on sale of assets</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,000</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,000</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr>
        <td valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Other expense</font></p> </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>

	  <tr>
        <td valign=bottom >

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
           income (loss) before income tax expense</font></p>
    </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,256</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>440</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >&nbsp;</td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,696</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>

	  	  <tr>
        <td valign=bottom >

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Income
	  Tax Expense</font></p>
    </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom >&nbsp;</td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(176</font></p> </td>

    <td valign=bottom ><font size="2">)</font></td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(176</font></p>
    </td>
    <td valign=bottom ><font size="2">)(6)</font></td>
  	  </tr>

	  	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
      <tr>
        <td valign=bottom >

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt;'><font size=2>Net
           Income</font></p>
    </td>

        <td valign=bottom >&nbsp;</td>
        <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,256</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom ><font size=2>$</font></td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>440</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

    <td width="1%" valign=bottom ><font size=2>$</font></td>
    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(176</font></p>
    </td>
    <td valign=bottom ><font size="2">)</font></td>
    <td width="1%" valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,520</font></p> </td>

    <td valign=bottom >
      <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td> </tr>

	  	        <tr>
        <td valign=bottom >&nbsp;</td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
        <td colspan="2" valign=bottom ><hr noshade width="100%" color="Gray" size="1"></td>
        <td valign=bottom >&nbsp;</td>
      </tr>
	  </table>


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[{"type": "8-K", "sequence": "1", "filename": "b413813-8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 699368}]
{"company-data": {"conformed-name": "DYNABAZAAR INC", "cik": "0001053676", "assigned-sic": "7389", "irs-number": "043351937", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-29423", "film-number": "06925332"}, "business-address": {"street1": "888 SEVENTH AVENUE", "city": "NEW YORK", "state": "NY", "zip": "10019", "phone": "212-974-5730"}, "mail-address": {"street1": "888 SEVENTH AVENUE", "city": "NEW YORK", "state": "NY", "zip": "10019"}, "former-company": {"former-conformed-name": "FAIRMARKET INC", "date-changed": "19991209"}}
Prepared and Filed by St Ives Financial
UNITED STATES
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):
June 20, 2006
DYNABAZAAR, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION)
000-29423
(COMMISSION FILE NUMBER)
04-3351937
(I.R.S. EMPLOYER IDENTIFICATION NO.)
888 Seventh Avenue
New York, New York 10019
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(212) 974-5730
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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):
Written communications pursuant to Rule 425 under the Securities
  Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
  (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under
  the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under
  the Exchange Act (17 CFR 240.13e-4(c))
SPECIAL NOTE REGARDING FORWARD-LOOKING FINANCIAL INFORMATION
This
    Current Report on Form 8-K contains or may contain forward-looking statements,
    which reflect our views with respect to future events and financial performance.
    These forward-looking statements are based on current expectations, estimates,
    projections and assumptions and are subject to certain uncertainties and
    other factors that could cause actual results to differ materially from such
    statements. These forward-looking statements are identified by, among other
    things, the words "anticipates", "believes", "estimates", "expects", "plans", "projects", "targets", "will" and
    similar expressions. Readers are cautioned not to place undue reliance on
    these forward-looking statements, which speak only as of the date they were
    made. Registrant (as defined below) undertakes no obligations to update or
    revise any forward-looking  statements, whether as a result of new information,
    future events or otherwise. Important factors that may cause actual results
    to differ significantly from those projected include the risk factors specified in Item 2.01(B) below.
Item
        1.01. Entry into a Material Definitive Agreement.
On
    June 20, 2006, Costar Video Systems, LLC ("Costar") and Video Solutions
    Technology Center, LLC ("VSTC"),  direct and indirect wholly owned
    subsidiaries of Dynabazaar, Inc., a Delaware corporation (the "Registrant", "Dynabazaar",
    the "Company" or "we"), completed the acquisition (the "Acquisition")
    of substantially all of the assets of Southern Imaging, Inc., a Texas Corporation
    ("Southern Imaging"), and Video Solutions Technology Center, Inc.,
    a Nevada corporation ("Video Solutions"), pursuant to the transactions
    contemplated by the asset purchase agreement, dated as of June 20, 2006 (the "Asset
    Purchase Agreement"),
    by and between Southern Imaging, Video Solutions, the shareholders of Southern
Imaging, Costar and VSTC.
Costar, the Company's subsidiary which acquired Southern Imaging's
    assets, will design, source and distribute video and imaging products for
    the security and industrial markets. VSTC, a subsidiary of Costar which acquired
    the assets of Video Solutions, will provide product design and development,
technical support and repair services for Costar.
The consideration for the Acquisition was up to approximately $9.5 million, consisting of the issuance at closing of 200,000 shares of the common stock of Dynabazaar, a cash payment of $3 million less the value of the 200,000 shares of Dynabazaar common stock, the assumption of approximately $2.475 million of certain long-term debt and related party notes payable, and deferred consideration of up to $4 million in cash, contingent upon Costar and VSTC achieving certain level of sales and EBITDA after the closing.
A copy of the Asset Purchase Agreement is attached hereto as Exhibit 2.1 and incorporated herein by reference.  The description of the Asset Purchase Agreement and the transactions consummated thereby are qualified in their entirety by reference to such exhibit.
There were no material relationships between Registrant or its affiliates and any of the parties to the Asset Purchase Agreement, other than in respect of such agreement.
Item
        2.01.
Completion of Acquisition or Disposition
        of Assets.
For additional information concerning the Acquisition, please see the information set forth above under Item 1.01 of this Current Report on Form 8-K, which information is incorporated herein by reference.
Registrant was a "shell company" (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) immediately before the completion of the Acquisition. Accordingly, pursuant to the requirements of Item 2.01(f) of Form 8-K, the information set forth below includes the information that would be required if Registrant were filing a general form for registration of securities on Form 10 under the Exchange Act upon consummation of the Acquisition, with such information reflecting Registrant and its securities upon consummation of the Acquisition.
2
Pursuant to Item 2.01(f) of Form 8-K, (1) the information with respect to "Business" and "Market Price of and Dividends on Registrant's Common Equity and Related Stockholder Matters," contained in Item 1 of Part I and Item 5 of Part II, respectively, of Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and contained in the subsection entitled "The Company" in Note 1 to the "Notes to Condensed Consolidated Financial Statements" in Registrant's Quarterly Report on Form 10-Q for the period ended March 31, 2006; (2) the information with respect to "Legal Proceedings" contained in the subsection entitled "Contingencies and Legal Proceedings" in Note 3 to the "Notes to Condensed Consolidated Financial Statements" in Registrant's Quarterly Report on Form 10-Q for the period ended March 31,
2006; and (3) the information with respect to "Security Ownership of Certain Beneficial Owners and Management," "Directors and Executive Officers," "Executive Compensation" and "Certain Relationships and Related Transactions" contained in the subsections entitled "Directors," "Executive Officers," "Security Ownership of Certain Beneficial Owners and Management," "Option Grants in Fiscal Year 2005," "Aggregate Option Exercises in Fiscal Year 2005 and Year End Option Values," "Director Compensation," "Summary Compensation Table," "Performance Graph" and "Certain Relationships and Related Transactions" contained in the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, in each case, is hereby incorporated by reference into this Current Report on Form 8-K under Item 2.01 hereof.
3
A.
Description of Business
Summary
Dynabazaar was incorporated in the State of Delaware in February 1997 as "Fairmarket, Inc."  Through September 3, 2003, we were an online auction and promotions technology service provider that enabled marketers to create results-oriented rewards programs and helped commerce companies automate the process of selling their excess inventory online to wholesale and retail buyers. On September 4, 2003, we sold substantially all of our operating assets to eBay, Inc. ("eBay") for consideration of $4.5 million in cash under the terms and conditions of an asset purchase agreement we entered into with eBay on June 20, 2003.  Following the closing of the asset sale, we changed our name from "Fairmarket, Inc." to "Dynabazaar, Inc."
In
    connection with the cessation of our online auction business, we relocated
    our principal executive offices as of January 1, 2004 to 888 Seventh Avenue,
    17th Floor, New York, New York 10019, an office maintained by Barington
    Capital Group, L.P., a limited partnership whose general partner is a corporation
    of which
    James Mitarotonda is Chairman, President and Chief Executive Officer. Mr. Mitarotonda
    is our President and Chief Executive Officer and sits on our Board of Directors.
From January 2003 until the completion of the Acquisition, we have not operated any business and have been settling our remaining claims and liabilities while reviewing alternatives for the use or disposition of our remaining assets.
Our common stock trades on the NASDAQ OTC bulletin board under the symbol "FAIM.OB".  Our common stock was quoted on the NASDAQ National Market, but was delisted on June 24, 2004.
In May 2006, William Fox resigned as Dynabazaar's President and Chief Executive Officer and from its Board of Directors.  Simultaneously, James Mitarotonda became the Company's President and Chief Executive Officer.
Additional information with respect to the "Description of Business" of Dynabazaar is hereby incorporated by reference to Item I of Part I of Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and to the subsection entitled "The Company" in Note 1 to the "Notes to Condensed Consolidated Financial Statements" of Dynabazaar's Quarterly Report on Form 10-Q for the period ended March 31, 2006.
Acquisition
On June 20, 2006, Costar and Video Solutions, direct and indirect wholly owned subsidiaries of the Registrant, completed the acquisition of substantially all of the assets of Southern Imaging and Video Solutions, pursuant to the transactions contemplated by the Asset Purchase Agreement.  Costar, a wholly owned subsidiary of the Registrant, acquired the assets of Southern Imaging and VSTC, a wholly owned subsidiary of Costar, acquired the assets of Video Solutions.
Business
Costar designs, sources and distributes video and imaging products for the security and industrial markets. The product line for the security market consists primarily of closed circuit television ("CCTV") cameras, while the product line for the industrial market is comprised of cameras and lenses utilized by biomedical and manufacturing companies.
The production of all units distributed by Costar is outsourced to contract manufacturers, and the majority of revenues are derived from sales of products under  the Costar
TM
brand. The balance of Costar's business is generated from (a) a private label business and (b) the distribution of other companies' branded products.
4
Video
    Solutions provides product design and development, technical support
    and repair services for Costar.
Plan of Operation
The Registrant's plan of operation is for Costar to design, source and distribute video and imaging products for the security and industrial markets and for VSTC to provide product design and development, technical support and repair services for Costar, in each case under a business model intended to deliver the highest levels of technology and support services to its customers at competitive prices.
Financial Information about Geographic and Business Segments
Over 97% of Costar's revenues are attributable to customers located within the United States.  The remaining 3% of revenues are generated from customers found in Portugal, Canada, Singapore, South Korea and France.
Industry
We
    believe that the fear of terrorism and conventional crime, coupled with the
    increased effectiveness and affordability of available countermeasures, has
    contributed to the ongoing expansion of the security industry. The Registrant
    believes that growth of CCTV equipment will continue, driven by technological
    innovations such as the adoption of more efficient, low cost, networked digital
technologies.
Stimulated by the demand for increased efficiency, we believe that the market for industrial vision products is growing larger as well.  Industrial cameras, for example, can be employed to increase the efficiency of a diverse set of manufacturing operations including those that produce semiconductors, automobiles, pharmaceuticals, chemicals and food.
Strategy and Marketing Efforts
The
    security and industrial divisions will continue their analogous strategies – increasing
    business with systems integrators and original equipment manufacturers (OEM)
    while targeting independent distributors and large systems integrators to
    cultivate additional channels of distribution.
Costar's sales and marketing strategy is focused on measures aimed at generating both product innovations and market recognition of the Costar
TM
brand. Such innovations will likely include the continued shift from analog to digital devices.
Costar is working to merge various existing technologies in an effort to enhance the performance capabilities of its security and industrial products for its customers. Product improvements are largely driven by the unique needs of Costar's customers. Advancements result from integrating a multitude of existing technologies for performance in a given environment. The ensuing innovations create unique value for our customers.
Products
The security product line, comprised of cameras, lenses, digital video recorders and high speed domes, is marketed under the Costar
TM
brand name. We expect to introduce new products for inclusion in integrated systems and distribution to Costar's evolving customer base.
The
    industrial product line, consisting of cameras, monitors, cables, lenses
    and video printers, are distributed  under brand names, such as Sony,
    Panasonic and Hitachi, the Costar
TM
brand
    name and, for OEM customers, private labels.
5
Competition
In the security market, Costar competes with General Electric, Honeywell and smaller companies like Pelco, GVI, Mace and Vicon.  In the industrial market, we believe that Costar is considered one of the top three distributors (the other two being AEGIS and Industrial Vision Source), selling cameras from manufacturers such as Sony, Panasonic, Hitachi, JVC, Toshiba and JAI.  In addition, Costar markets industrial products under the Costar
TM
brand name and under private labels for certain OEM's competing in this sector with other manufacturers.
Employees
Costar currently employs fourteen (14) people:  five (5) in development and technical support, five (5) in sales and marketing, and the remainder in administrative support.  All employees are located in the United States and none are represented by a union or labor group.
Facilities
Costar's primary facilities are located in Carrolton, Texas and Anaheim, California. Both facilities are leased.
Legal Proceedings
The information with respect to "Legal Proceedings" of Registrant is hereby incorporated by reference to the subsection entitled "Contingencies and Legal Proceedings" in Note 5 to the "Notes to Condensed Consolidated Financial Statements" in Registrant's Form 10-Q for the quarter ended March 31, 2006 filed with the SEC on May 15, 2006.
6
B.
Risk Factors
Reliance on Manufacturing Sources
We outsource production of our products to contract manufacturers. Our manufacturers' ability to complete our orders on a timely basis while maintaining high product quality is important to our operational success. The manufacturers' failure to live up to the production standards might cause brand equity damage and legal liability exposure. Such events could have a material adverse effect on our financial performance. Despite the precautionary measures we have taken to avoid manufacturing defects and delays, replacing an existing manufacturer with a new one is a complicated and a time intensive process.
Rapid Technology Changes within Industry
Vision imaging products are subject to technology changes, causing the industry to set new standards and practices. Such changes could substantially decrease the demand for our current product lines, thus hindering our operational and financial performance.
Intensifying Competition
Competitiveness has intensified in recent years. Larger competitors may respond more quickly to rapid technological changes, as they have more capital and resources available to devote to research and development, manufacturing changes and marketing. Increased competition could force us to decrease our prices thus eroding our margins, which could negatively impact our operational and financial performance.
Retaining Quality Personnel
The key to our success is dependant on the dedication, talents and hard work of our personnel. In order to fulfill our growth targets we must retain and attract high quality employees and management. Losing key personnel would likely be detrimental to our success.
Merger and Acquisition Costs
Our growth strategy may include the acquisition of complimentary businesses. The integration of an acquired business might have difficult consequences. Transaction and integration costs could affect operational and financial performance of our business as a whole. Synergies identified pre-closing may not materialize. Management's attention might be temporarily diverted from running our business.
Delisted
from The NASDAQ National Market
Registrant's common stock was delisted from trading on The NASDAQ National Market in 2004 by reason of not maintaining listing requirements due to the lack of tangible business operations and significantly reduced market price of the common stock. As a result, Registrant's common stock currently trades over the counter on the NASDAQ OTC Bulletin Board, and the ability of Registrant's stockholders to obtain liquidity and consistent market prices for Registrant's shares has been significantly impaired.
7
Public Company Expenses
As a public company, Registrant incurs significant legal, accounting and other expenses. In addition, the Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the Securities and Exchange Commission and NASDAQ, has required changes in corporate governance practices of public companies. These rules and regulations increase legal and financial compliance costs and make some activities more time consuming and costly. In addition, Registrant incurs additional costs associated with its public company reporting requirements. These rules and regulations also may make it more difficult and more expensive for Registrant to obtain director and officer liability insurance, and Registrant may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage.
8
C.
Financial
        Information
(a) Selected Financial Data
The information with respect to Registrant's Selected Financial Data is hereby incorporated by reference to Item 6 of Part I of Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005.
The following table sets forth supplemental selected financial data of Costar and should be read in conjunction with the Financial Statements and Notes thereto included elsewhere herein.  The following information reflects only the Costar Video Systems business and does not reflect the prior operations of Dynabazaar, Inc.
December 31,
2005
December 31,
2004
December 31,
2003
December 31,
2002
December 31,
2001
Audited
Audited
Audited
Unaudited
Unaudited
Statement of Operations Data:
($
        in thousands)
Revenues
$
9,206
$
7,467
$
5,449
$
5,071
$
4,538
Cost of Revenues
6,055
5,628
4,050
3,648
3,688
Gross Profit
2,251
1,839
1,390
1,423
850
Operating
        expenses
General
        and administrative
1,627
1,431
1,284
1,181
1,351
Total operating expenses
1,627
1,431
1,284
1,181
1,351
Net Income from operations
624
408
106
242
(501
)
Other Income (Expense)
Interest Expense Net
(182
)
(164
)
(124
)
(143
)
(149
)
Other Income (Expense)
(1
)
13
13
9
26
Total
        Other Income (Expense)
(183
)
(151
)
(111
)
(134
)
(123
)
Net Income (loss)
$
441
257
(5
)
108
(624
)
(b) Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations with respect to Registrant included in Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and in Registrant's Form 10-Q for the period ended March 31, 2006 are hereby incorporated by reference.
The following supplemental Management's Discussion and Analysis contains forward-looking statements within the meaning of Federal securities laws. You can identify these statements because they use forward-looking terminology such as "may," "will," "expect," "anticipate," "estimate," "continue," "believe" and "intend" or other similar words. These words, however, are not the exclusive means by which you can identify these statements. You can also identify forward-looking statements because they discuss future expectations, contain projections of results of operations or of financial conditions, characterize future events or circumstances or state other forward-looking information. We have based all forward-looking statements included in this Management's Discussion and Analysis on information currently
available to us, and we assume no obligation to update any of these forward-looking statements. Although we believe that the expectations reflected in any of these forward-looking statements are based on reasonable assumptions, actual results could differ materially from those projected in the forward-looking statements. Potential risks and uncertainty include, among others, those set forth in the "Risk Factors" section. The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in this Current Report on Form 8-K.
While we believe that the discussion and analysis in this report is adequate for a fair presentation of the information, we recommend that you read this discussion and analysis in conjunction with the description of our business included elsewhere in this report.
9
Critical Accounting Policies
The preparation of Registrant's financial statements requires management to make difficult, subjective or complex judgments, including making estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, based upon information available at the time, historical experience and various other factors that are believed to be reasonable under the circumstances. These estimates are subject to an inherent degree of uncertainty. Registrant's significant accounting policies are described in Note A, Summary of Significant Accounting Policies, to the financial statements of Southern Imaging for the year ended December 31, 2005 included in this Current Report on Form 8-K. No changes to these critical policies have taken place during the year to date period ended March 31, 2006.
Results of Operations ($ in thousands)
The
    following table sets forth, for the periods presented, certain data derived
    from the statement of operations of Southern Imaging as a percentage of total
    revenues. The following information reflects only Southern Imaging's
    business and does not reflect the prior operations of Dynabazaar.
3 month (13 week) period ended
Year ended
March 31,
2006
March 31,
2005
December 31,
2005
December 31,
2004
Revenues
100%
100%
100%
100%
Cost
        of Revenues
78%
72%
75%
75%
Gross
        Profit
22%
28%
25%
25%
Operating
        Expenses
General and administrative
11%
21%
18%
18%
Total operating expenses
11%
21%
18%
18%
Other Expenses
Interest
2%
3%
2%
2%
Total other expenses
2%
3%
2%
2%
Net Income
9%
4%
5%
5%
Three month (13 week) periods ended March 31, 2006 and March 31, 2005
Revenues
Revenue for the quarter ended March 31, 2006 increased by $2,037 or 219% to $3,754, as compared to $1,716 for the quarter ended March 31, 2005. Revenues increased due to sales made to two major customer accounts.
Gross Profit
Gross profit increased by $346 to $821 for the quarter ended March 31, 2006, as compared to $475 for the quarter ended March 31, 2005.  Gross profit as a percentage of sales decreased to 22% for the quarter ended March 31, 2006, as compared to 28% for the quarter ended March 31, 2005. Gross profit declined due to lower margins on a substantial increase in sales to two major accounts.
Operating Expenses
Operating expenses increased by $63 to $430 for the quarter ended March 31, 2006, as compared to $366 for the quarter ended March 31, 2005. The increase was due to increases in office expense of $29, bad debt expense of $19, office supplies of $13 and depreciation expense of $15. These increases were offset by a decrease in advertising expense of $18.
Net Income
Net Income increased by $256 to $315 for the quarter ended March 31, 2006, as compared to $59 for the quarter ended March 31, 2005.
10
Fiscal years ended December 31, 2005 and December 31, 2004
Revenues
Revenues for the fiscal year ended December 31, 2005 increased by $1,739, or 23.6%, to $9,206, as compared to $7,467 for the fiscal year ended December 31, 2004.  The increase was primarily due to sales of security equipment made to Wal-Mart which accounted for 14% of total sales.
Gross Profit
Gross profit increased by $412 to $2,251 for the fiscal year ended December 31, 2005, as compared to $1,839 for the fiscal year ended December 31, 2004 and as a percent of sales, remained at 25% for the fiscal years ended December 31, 2005.
Operating Expenses
Operating expenses increased by $196 to $1,627 for the fiscal year ended December 31, 2005, as compared to $1,431 for the fiscal year ended December 31, 2004, as a result of increased salaries and professional fees, offset by a decrease in bad debt expense.
Net Income
Net income for the fiscal year ended December 31, 2005 was $441, as compared to net income of $257 for the fiscal year ended December 31, 2004.
Financial Condition, Liquidity and Capital Resources
Registrant:
As of March 31, 2006, Registrant had approximately $9.0 million of cash and cash equivalents. As previously mentioned, on June 20, 2006, the Registrant purchased the assets of Southern Imaging.  The total consideration for the transaction is up to approximately $9.5 million. Of this amount, approximately $3 million was paid at closing and approximately $2.475 million of certain long-term debt and related party notes payable was assumed. The balance of approximately $4 million will be paid, in cash, during the period 2006 to 2009 subject to the Costar and VSTC achieving certain levels of sales and EBITDA.
Registrant believes that its existing cash and cash equivalents are sufficient to fund the Company's current operations and meet its working capital and capital expenditures needs in the near future. If Registrant grows through acquisitions, Registrant could need to obtain additional financing.
Southern Imaging, Inc.:
Net cash used in operating activities for the three month (13 week) period ended March 31, 2006 was $264 as compared to net cash used of $217 for the three month period ended March 31, 2005.  This was attributable to an increase in accounts receivable of $985 and inventory of $174, offset by an increase in accounts payable of $566 and net income for the quarter of $315.
Net cash used by investing activities for the three month (13 week) period ended March 31, 2006 was $(7) as compared to net cash used of $(5) for the three month period ended March 31, 2005.  This was attributable to the purchase of property and equipment.
Net cash provided by financing activities for the three month (13 week) period ended March 31, 2006 was $373 as compared to net cash used of $99 for the three month  period ended March 31, 2005.  This was attributable to a net increase in the proceeds from the line of credit.
Net
    cash provided in operating activities for fiscal year ended December 31,
    2005 was $9 as compared to net cash used of $(225) for the fiscal year ended
    December 31, 2004. This improvement was attributable to an increase in net
    income of $190, a reduction in bad debt write off of $140, offset by a decrease
in accounts receivable and inventory of $93.
11
Net cash used in investing activities for fiscal year ended December 31, 2005 was $(51) as compared to net cash used of $(10) for the fiscal year ended December 31, 2004. This increase resulted from a payment to satisfy a non-compete agreement of $13 together with an increase in the purchase of property and equipment of $22.
Net cash provided by financing activities for fiscal year ended December 31, 2005 was $83 as compared to $247 for the fiscal year ended December 31, 2004. This reflects a decrease in working capital borrowings and an increase in repayment of notes payable in 2005 compared to 2004.
Off-Balance Sheet Arrangements
We do not have any off-balance arrangements required to be disclosed pursuant to Item 303 of Regulation S-K.
(c)
        Quantitative and Qualitative Disclosures about Market Risk
The information with respect to "Quantitative and Qualitative Disclosures About Market Risk" of Registrant is hereby incorporated by reference to Item 7A of Part II of Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and Item 3 of Part I of Registrant's Quarterly Report on Form 10-Q for the period ended March 31, 2006.
D.
Security Ownership of Certain Beneficial Owners and Management
The following table presents information with respect to beneficial ownership of the common stock as of May 15, 2006 by:
•
each person known by us to beneficially own more than 5% of the common stock;
•
individuals serving as our Named Executive Officers;
•
each of our directors; and
•
all executive officers and directors as a group.
Except as otherwise noted, the address of each person/entity listed in the table is c/o Dynabazaar, Inc., 888 Seventh Avenue, 17th Floor, New York, NY 10019. The table includes all shares of common stock issuable within 60 days of May 15, 2006 upon the exercise of options and other rights beneficially owned by the indicated stockholders on that date. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and includes voting and investment power with respect to all shares of common stock. To our knowledge, except under applicable community property laws or as otherwise indicated, the persons named in the table have sole voting and sole investment control with respect to all shares of common stock beneficially owned. The applicable percentage of ownership for each stockholder is based on 23,409,956 shares of common stock outstanding as of May 15, 2006 together
with applicable options for that stockholder. Shares of common stock issuable upon exercise of options and other rights beneficially owned are deemed outstanding for the purpose of computing the percentage ownership of the person holding those options and other rights, but are not deemed outstanding for computing the percentage ownership of any other person.
12
Shares Beneficially
Owned
Name of Beneficial Owner
Number
Percent
Ticketmaster
2,225,000
(1)
9.50
%
3701 Wilshire Boulevard
Los Angeles, CA 90010
Barington Capital Group, L.P.
2,936,360
(2)
12.54
%
888 Seventh Avenue, 17th Floor
New York, NY 10019
Jay Gottlieb
1,658,019
(3)
7.08
%
27 Misty Brook Lane
New Fairfield, CT 06812
Melvyn Brunt
100,000
(4)
*
Rory J. Cowan
100,000
(5)
*
James Mitarotonda
2,047,330
(6)
8.75
%
Raymond Steele
75,000
(7)
*
All executive officers and directors as a group
(consisting of 4 persons) (4)-(7)
2,322,330
(8)
9.92
%
(*)
        Represents less than 1% of the outstanding shares of common stock.
(1) This information is based on a Schedule 13D filed by Ticketmaster (formerly Ticketmaster Online-CitySearch, Inc.) with the Securities and Exchange Commission on June 25, 2003.
(2) This information is based solely on a Schedule 13D, as amended, filed by Barington Companies Equity Partners, L.P., Ramius Capital Group, LLC, Ramius Halifax Partners, L.P., MM Companies, Inc., Jewelcor Management, Inc., Barington Capital Group, L.P., Ramius Securities, LLC and Starboard Value & Opportunity Fund with the SEC on May 25, 2004, reporting a combined ownership of 2,785,560 shares of our common stock by these reporting entities, and (i) a Form 4 filed by James Mitarotonda with the SEC on June 9, 2004, reporting the acquisition of 20,800 shares by Barington Capital Group, L.P. on June 7, 2004; (ii) a Form 4 filed by James Mitarotonda with the SEC on August 25, 2005, reporting the acquisition of 105,000 shares by Barington Capital Group, L.P. on August 23, 2005; and (iii) a Form 4 filed by James Mitarotonda with the SEC on March 29, 2006, reporting the acquisition on March
28, 2006 of 25,000 shares of common stock issuable upon the exercise of options.
(3)
    This information is based on a Schedule 13D filed by Jay Gottlieb with the
    Securities and Exchange Commission on May 2, 2006. According to such Schedule
    13D, 1,262,049 of these shares are owned by Mr. Gottlieb and 395,970
    are beneficially owned by The Laurick Trust. The trust is for the benefit
    of Mr. Gottlieb's adult children. Mr. Gottlieb, as trustee
    of the trust, has sole responsibility to vote and dispose of these shares
    as well as the shares in his name. Mr. Gottlieb disclaims beneficial
    ownership of any such shares held by him as trustee for the benefit of his
    adult children.
(4) Consists of 100,000 shares of common stock issuable upon the exercise of options.
(5) Consists of 100,000 shares of common stock issuable upon the exercise of options.
(6) Includes 1,404,330 shares of common stock beneficial owned by Barington Capital Group, L.P. and Barington Companies Equity Partners, L.P., entities which are directly or indirectly controlled by Mr. Mitarotonda. Mr. Mitarotonda disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. Also includes 643,000 shares of common stock issuable upon the exercise of options granted to Mr. Mitarotonda.
13
(7) Consists of 75,000 shares of common stock issuable upon the exercise of options.
(8) Includes 1,036,167 shares of common stock issuable upon the exercise of options.
E.
Directors and Executive Officers
The number of directors comprising our board of directors (the "Board") is currently fixed at three. Each Board member holds office for a term of three years or until his or her respective successor has been duly elected and qualified. Our Board is divided into three classes, consisting of one Class I director (Raymond Steele); one Class II director (Rory J. Cowan); and one Class III director (James A Mitarotonda).
Set forth below is certain information regarding the directors of Dynabazaar, Inc.
Name
Age
Position
        with the Company
Director
        Since
James
        A. Mitarotonda
51
President,
        Chief Executive Officer and Director
2003
Rory
        J. Cowan
53
Chairman
        of the Board of Directors (1)(2)(3)
2001
Raymond
        Steele
71
Director
        (1)(2)(3)
2004
(1)
Member of Audit Committee
(2)
Member of Nominating and Corporate Governance Committee
(3)
Member of Compensation Committee
Mr. Mitarotonda
  has served as one of our directors since September 2003 and as our President
  and Chief Executive Officer since May 2006. He also served as our President
  and Chief Executive Officer from January 2004 to December 17, 2004. Mr. Mitarotonda
  is Chairman of the Board, President and Chief Executive Officer of Barington
  Capital Group, L.P., an investment firm that he co-founded in November 1991.
  Mr. Mitarotonda is also Chairman of the Board, President and Chief Executive
  Officer of Barington Companies Investors, LLC, the general partner of Barington
  Companies Equity Partners, L.P., a small capitalization value fund. In addition,
  he is the Chairman of the Board, President and Chief Executive Officer of Barington
  Companies Advisors, LLC, the investment advisor of Barington Companies Offshore
  Fund, Ltd., a small capitalization value fund.
Mr. Mitarotonda
  is also a director of L Q Corporation, Inc. (OTCBB:LQCI.OB) and A. Schulman,
  Inc. (NASDAQ:SHLM). He also has served as L Q Corporation, Inc.'s Co-Chief
  Executive Officer and Co-Chairman from April 2003 to May 2004, its sole Chief
  Executive Officer from May 2004 to October 2004 and as its sole Chairman since
  May 2004. In May 1988, Mr. Mitarotonda co-founded Commonwealth Associates,
  an investment banking, brokerage and securities trading firm. Mr. Mitarotonda
  served as Chairman of the Board and Co-Chief Executive Officer of JMJ Management
  Company Inc., the general partner of Commonwealth Associates.
Mr. Cowan has served as one of our directors since March 2001. Mr. Cowan is the founder of Lionbridge Technologies, Inc. ("Lionbridge"), a provider of globalization products and services for worldwide deployment of technology and information-based products, where he has served as Chairman of the Board and Chief Executive Officer since September 1996. From September 1996 to March 2000, Mr. Cowan also served as President of Lionbridge. Before founding Lionbridge, Mr. Cowan served as Chief Executive Officer of Interleaf, Inc., a document automation software services company, from October 1996 to January 1997. From May 1995 to June 1996, Mr. Cowan served as Chief Executive Officer of Stream International, Inc., a software and services provider and a division of R.R. Donnelley & Sons ("R.R. Donnelley"), a provider of commercial print and print-related services.
Mr. Cowan joined R.R. Donnelley in 1988 and served most recently as Executive Vice President from 1991 to June 1996. Before joining R.R. Donnelley, Mr. Cowan was founder of CSA Press of Hudson, Mass., a software duplication firm, and held positions at Compugraphic Corporation, an automated publishing hardware firm.
14
Mr. Steele has served as one of our directors since December 2004. Mr. Steele is a retired businessman. Prior to his retirement, he held various senior positions such as Executive Vice President of Pacholder Associates, Inc. (from August 1990 until September 1993), Executive Advisor at the Nickert Group (from 1989 through 1990), and Vice President, Trust Officer and Chief Investment Officer of the Provident Bank (from 1984 through 1988). Mr. Steele currently serves on the board of directors of American BankNote Corporation (OTC BB:ABNTQ), Globix Corporation (AMEX:GEX), Motient Corporation (PNK:MNCP) and Horizon Offshore, Inc. He is also a member of the board of directors of Newcastle Holdings, Inc. (PNK:HOFF).
There are no family relationships among any of our directors or executive officers.
Executive Officers
Mr. Mitarotonda
    has served as our President and Chief Executive Officer since May 2006, replacing
    William Fox who resigned as President and Chief Executive Officer and from
    the Board of Directors during that same month. He also served as our President
    and
    Chief
    Executive
Officer from January 2004 to December 17, 2004.
Melvyn Brunt has served as our Chief Financial Officer since January 1, 2004.
As of May 16, 2006, the following persons were serving as our executive officers:
Name
Age
Position
        with the Company
Held
        Office Since
James
        A. Mitarotonda
51
President,
        Chief Executive Officer and Director
2006
Melvyn
        Brunt
62
Chief
        Financial Officer and Secretary
2004
Mr. Mitarotonda's biographical information is detailed above.
Mr. Brunt
    has served as our Chief Financial Officer and Secretary since January 2004.
    He has also served as Chief Financial Officer of Barington Capital Group,
    L.P. since January 2002 and as Chief Financial Officer and Secretary to L
    Q Corporation, Inc. (OTCBB:LQCI.OB) since April 2003. In addition, from January
    2002 to May 2004, he served as Chief Financial Officer and Secretary to MM
    Companies, Inc., now known as George Foreman Enterprises, Inc. (OTCBB:GFME.OB).
    From 1985 to 2001, Mr. Brunt was a Director and Chief Financial Officer
    of Davies Turner & Co., an international freight forwarding company with
    offices throughout the United States. From 1996 to 2001, Mr. Brunt
    was President of Air Mar, Inc. and a Director of TCX International Inc.
    Both of those companies provided logistics support services to a wide variety
    of importing and exporting companies.
Identification of the Audit Committee
The Company has a separately-designated standing audit committee established in accordance with the Exchange Act. The members of the audit committee are Raymond Steele and Rory Cowan.
15
Audit
  Committee Financial Expert
The Board has determined that Mr. Steele qualifies as an audit committee financial expert and that he is an independent director under the National Association of Securities Dealers' listing standards and the applicable rules of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
F.
Executive Compensation
The information with respect to "Executive Compensation" of Registrant is hereby incorporated by reference to the subsections entitled "Summary Compensation Table," "Option Grants in Fiscal Year 2005," "Aggregate Option Exercises in Fiscal Year 2005 and Year End Option Values," "Director Compensation" and "Performance Graph" in Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005.
G.
Certain Relationships and Related Transactions
The information with respect to "Certain Relationships and Related Transactions" of Registrant is hereby incorporated by reference to the subsection entitled "Certain Relationships and Related Transactions" in Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005.
H.
Legal Proceedings
The information with respect to "Legal Proceedings" of Registrant is hereby incorporated by reference to the subsection entitled "Contingencies and Legal Proceedings" in Note 5 to the "Notes to Condensed Consolidated Financial Statements" in Registrant's Form 10-Q for the quarter ended March 31, 2006 filed with the SEC on May 15, 2006.
I.
Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters
Additional information with respect to "Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters" is hereby incorporated by reference to Item 5 of Part II of Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2005.
Market Price of Common Stock
Our common stock was quoted on the NASDAQ National Market under the symbol "FAIM" but it was delisted on June 24, 2004. The following table presents, for the periods indicated, the high and low closing prices per share of our common stock as reported on the NASDAQ National Market and/or the NASDAQ OTC Bulletin Board, as applicable.
High
Low
Quarter Ended March 31, 2006
First Quarter
$
0.40
$
0.35
Year Ended December 31, 2005
First
        Quarter
$
0.35
$
0.30
Second
        Quarter
0.34
0.30
Third Quarter
0.41
0.31
Fourth Quarter
0.41
0.36
Year Ended December 31, 2004
First
        Quarter
$
0.44
$
0.32
Second Quarter
0.39
0.30
Third
        Quarter
0.31
0.26
Fourth Quarter
0.35
0.27
16
Our common stock at June 6, 2006 was $0.36. As of March 30, 2006, there were approximately 171 shareholders of record of our common stock. Because many shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
J.
Recent Sales of Unregistered Securities.
Not applicable.
K.
Description of Registrant's Securities to be Registered.
Not applicable.
L.
Indemnification of Directors and Officers.
Section
  145 of the Delaware General Corporation Law (the "DGCL") permits a
  corporation, under specified circumstances, to indemnify its directors, officers,
  employees or agents against expenses (including attorneys' fees), judgments,
  fines and amounts paid in settlements actually and reasonably incurred by them
  in connection with any action, suit or proceeding brought by third parties by
  reason of the fact that they were or are directors, officers, employees or agents
  of the corporation, if such directors, officers, employees or agents acted in
  good faith and in a manner they reasonably believed to be in or not opposed
  to the best interests of the corporation and, with respect to any criminal action
  or proceeding, had no reason to believe their conduct was unlawful. In a derivative
  action, that is one by or in the right of the corporation, indemnification may
  be made only for expenses actually and reasonably
incurred
  by directors, officers, employees or agents in connection with the defense or
  settlement of an action or suit, and only with respect to a matter as to which
  they will have acted in good faith and in a manner they reasonably believed
  to be in or not opposed to the best interests of the corporation, except that
  no indemnification will be made if such person will have been adjudged liable
  to the corporation, unless and only to the extent that the court in which the
  action or suit was brought will determine upon application that the defendant
  directors, officers, employees or agents are fairly and reasonably entitled
  to indemnity for such expenses despite such adjudication of liability.
The Amended and Restated Certificate of Incorporation of the Registrant provides that the Registrant shall indemnify to the extent permitted by Delaware law any person whom it may indemnify thereunder, including directors, officers, employees and agents of the Registrant. Such indemnification (other than an order by a court) of directors and officers shall be made by the Registrant in accordance with Article V, Section 2 of the By-Laws of the Registrant which information is incorporated herein by reference. Such indemnification (other than an order by a court) of non-officer employees shall by made by the Registrant in accordance with Article V, Section 3 of the By-Laws of the Registrant which information is incorporated herein by reference.
Registrant has entered into indemnification agreements with its officers and directors containing provisions which may require Registrant, among other things, to indemnify its officers and directors against certain liabilities that may arise by reason of their status or service as officers or directors (other than liabilities arising from willful misconduct of a culpable nature) and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified. Registrant also intends to execute such agreements with its future directors and executive officers.
M.
Financial Statements and Supplementary Data.
Reference is made to the disclosure set forth under Item 9.01 of this Current Report on Form 8-K, which disclosure is incorporated herein by reference.
N.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
17
O.
Financial
        Statements and Exhibits.
Reference is made to the disclosure set forth under Item 9.01 of this Current Report on Form 8-K, which disclosure is incorporated herein by reference.
Item 5.06. Change in Shell Company Status.
Registrant
    was a "shell company" (as such term is defined in Rule 12b-2 under
    the Securities Exchange Act of 1934, as amended) immediately before the Acquisition.
    As a result of the Acquisition, Registrant acquired the assets of Southern
    Imaging, Inc., an operating business. Consequently, Registrant believes that
    the Acquisition has caused it to cease to be a shell company. For information
    about the Acquisition, please see the information set forth above under Items
    1.01 and 2.01 of this Current Report on Form 8-K, which information is incorporated
    herein by reference.
Item 8.06. Other Events.
On June 26, 2006, Registrant
issued a press release announcing the transaction discussed above. A copy of the press release
is attached hereto as Exhibit 99.1.
In accordance with General
Instruction B.2 on form 8-K, Exhibit 99.1 shall not be deemed to be "filed" for purposes
of Section 18 of the Exchange or otherwise subject to the liability of that section, and shall not
be incorporated by reference into any registration statement or other document filed under
the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth
by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
.
a.
Financial
        Statements of Business Acquired
Filed herewith are the audited financial statements of Southern Imaging, Inc. for the fiscal years ended December 31, 2005 and December 31, 2004 and the unaudited financial statements for the three month (13 week) periods ended March 31, 2006 and March 31, 2005.
b.
Pro
        Forma financial information
Filed
    herewith are pro forma consolidated financial statements of Registrant
    and Southern Imaging, Inc. for the fiscal year ended December 31, 2005 and
    for the three month period ended March 31, 2006.
d.
Exhibits
2.1
Asset
                Purchase Agreement dated as of June 20, 2006 by and among Southern
                Imaging, Video Solutions, the shareholders of Southern Imaging,
            Costar and VSTC
21.1
Subsidiaries
23.1
Consent
        of Ken Hughes & Associates, PC
99.1
Press
        Release of Dynabazaar, Inc. dated June 26, 2006
18
SIGNATURES
Pursuant
  to the requirements of the Securities Exchange Act of 1934, Registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.
Dated:
          June 26, 2006
DYNABAZAAR,
          INC.
By:
/s/ James A. Mitarotonda
James
          A. Mitarotonda
President and Chief Executive Officer
19
Southern Imaging, Inc. and Subsidiary
CONTENTS
Report of Independent Public Accounting Firm
Audited Financial Statements
Balance Sheets as of December 31, 2005 and December 31, 2004
Statements of Operations – Years ended December 31, 2005 and December 31, 2004
Statements of Cash Flows – Years ended December 31, 2005 and December 31, 2004
Notes to Financial Statements
Unaudited Financial Statements
Balance Sheets as of March 31, 2006 and March 31, 2005
Statements of Operations – Three month (13 week) periods ended March 31, 2006 and March 31, 2005
Statements of Cash Flows – Three
month (13 week) periods ended March 31, 2006 and March 31, 2005
Notes to Financial Statements
Unaudited Pro Forma Financial Statements
20
Ken Hughes & Associates, PC
Certified Public Accountants & Consultants
INDEPENDENT AUDITORS' REPORT
Southern Imaging, Inc., and Subsidiary
Board of Directors
We have audited the accompanying consolidated balance sheet of Southern Imaging, Inc., and Subsidiary as of December 31, 2005, and the related consolidated statements of income 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 audit in accordance with U.S. generally accepted auditing standards. 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 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 consolidated financial position of Southern Imaging, Inc., and Subsidiary at December 31, 2005, and the consolidated results of operations and cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.
April 5, 2006
4880 Long Prairie Rd., Ste. 100 Flower Mound, TX 75028 TEL (972) 221-2500 Fax (972) 436-8887 (800) 221-2509
www.fmancialshop.com
21
Ken Hughes & Associates, PC
Certified Public Accountants & Consultants
INDEPENDENT AUDITORS' REPORT
Southern Imaging, Inc., and Subsidiary
Board of Directors
We have audited the accompanying consolidated balance sheet of Southern Imaging, Inc., and Subsidiary as of December 31, 2004, and the related consolidated statements of income 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 audit in accordance with U.S. generally accepted auditing standards. 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 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 consolidated financial position of Southern Imaging, Inc., and Subsidiary at December 31, 2004, and the consolidated results of operations and cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.
July 15, 2005
4880 Long Prairie Rd., Ste. 100 Flower Mound, TX 75028 TEL (972) 221-2500 Fax (972) 436-8887 (800) 221-2509
www.fmancialshop.com
22
Southern Imaging, Inc. and Subsidiary
Condensed Consolidated Balance Sheet
(in thousands)
December 31, 2005
December 31, 2004
Assets
Current assets:
Cash
$
192
$
151
Accounts receivable, net of an allowance for doubtful accounts of $37,826
1,227
1,081
Inventory
1,968
1,645
Prepaid
            expenses
—
3
Total current assets
3,388
2,880
Property
                and equipment, net
83
57
Other assets
16
4
Total assets
$
3,487
2,941
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities
$
796
$
764
Related party notes payable
612
612
Federal income tax payable
—
8
Current portion of long term debt
—
4
Total current liabilities
1,408
1,388
Long-term debt, net of current portion
1,490
1,400
Total liabilities
2,898
2,788
Stockholders' equity:
589
153
Total stockholders' equity
589
153
Total liabilities and stockholders' equity
$
3,487
$
2,941
23
Southern Imaging, Inc. and Subsidiary
Condensed Consolidated Statement of Operations
(in thousands)
December 31, 2005
December 31, 2004
Revenue
$
9,206
$
7,467
Cost of goods sold
6,955
5,628
Gross profit
2,251
1,839
Operating expenses:
General and administrative expenses
1,627
1,431
Total operating expenses
1,627
1,431
Net income from operations
624
408
Other income (expense):
Interest expense
(182
)
(164
)
Other expense
(1
)
13
Total other income (expense)
(183
)
(151
)
Net income before provision for Federal income tax
441
257
Provision for Federal income tax-currently payable
(2
)
(10
)
Net income
$
439
$
247
24
Southern Imaging, Inc. and Subsidiary
Consolidated Statement of Cash Flows
(in thousands)
December 31, 2005
December 31, 2004
Cash flows from operating activities:
$
438
$
248
Net income
—
—
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
13
12
Bad debts
32
173
Change in operating accounts:
Increase in accounts receivable
(178
)
(406
)
Increase in inventory
(323
)
(187
)
Decrease in prepaid expenses
3
28
Increase (decrease) in Federal income taxes payable
(8
)
8
Increase (decrease) in accounts payable and accrued liabilities
32
(100
)
429
(472
)
Net cash provided by operating activities
9
(224
)
Cash flows from investing activities:
Payment on non-compete agreement
(13
)
—
Purchase of property and equipment
(38
)
(16
)
Net cash used in investing activities
(51
)
(16
)
Cash flows from financing activities:
Proceeds from notes payable
200
290
Purchase of treasury stock
(3
)
—
Repayments of notes payable
(114
)
(43
)
Net cash provided by financing activities
83
247
Net increase in cash
41
6
Cash at beginning of year
151
145
Cash at end of year
$
192
$
151
Supplemental disclosure:
Cash paid for interest
$
182
$
164
Cash paid for taxes
$
10
$
2
See accompanying notes to financial statements.
25
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
December 31, 2005
Note A - Summary of significant accounting policies, continued
Revenue recognition
The financial statements are presented on the accrual basis of accounting. Sales revenues are recognized upon the shipment of merchandise to customers. Allowances for sales returns are recorded as a component of net sales in the period the allowance is recognized.
Freight costs
Freight costs are included in cost of goods sold and expensed as incurred. Total freight and shipping expense for the year ended December 31, 2005 was approximately $176,000.
Federal income taxes
No provision or liability for Federal income tax has been recorded by the parent company, Southern Imaging, Inc. As a Subchapter S corporation, stockholders of Southern Imaging, Inc. are taxed on their proportionate share of the Company's taxable income as provided by the rules of the Internal Revenue Code.
Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable by the subsidiary, Video Solutions Technology Center, Inc.
Advertising expense
Advertising costs are expensed as incurred. Advertising expense amounted to approximately $55,000 for the year ended December 31, 2005.
Note B - Lines of credit
The Company maintained a line of credit agreement with First National Bank. The agreement provided for a revolving line of credit aggregating $1,700,000 for working capital purposes, which matured April 1, 2006. The agreement is secured by a first lien security interest in all unencumbered assets of the Company and Subsidiary and guaranteed by the owners of the Company. Interest is payable monthly at a floating variable interest rate of prime plus 1%. The agreement requires maintenance of financial ratios and certain covenants, including minimum tangible net worth, which increases quarterly. As of December 31, 2005, the Company had a balance of $1,490,000 drawn on the line, and the prime rate was 7.25%.
In February 2006, the outstanding balance of the First National Bank line of credit was transferred to a line of credit agreement with Bank of Texas. The Bank of Texas line has a limit of $2,500,000, carries an interest rate equal to the BOKF National Prime Rate, and matures January 2007. The line is secured by all assets of the Company and limited personal guarantees of four of the stockholders of the Company. The agreement requires maintenance of financial ratios and certain covenants and monthly payments of accrued interest calculated on the outstanding balance at the variable rate described above.
26
Note C - Related party notes payable
Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.
The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and subsequently to the Bank of Texas line. The balance of the note as of December 31, 2005 was $570,000.
The
    note agreement to Jim Pritchett requires monthly interest payments at 12%
    and is secured by all assets of the Company, tangible and intangible, subordinated
    only to liens and covenants of the line of credit with First National Bank,
    and subsequently to the Bank of Texas line, and the note to Arthur Thompson.
The balance of the note as of December 31, 2005 was $42,160.
Note D Concentrations
Major customer
Sales for 2005 include sales to one major customer. The major customer accounted for 14% of total company sales. Accounts receivable from this customer totaled 12% of total receivables as of December 31, 2005.
Major suppliers
Inventory purchases for the year ended December 31, 2005 included purchases from three major suppliers that accounted for 22%, 15% and 10% of total inventory purchases. Management believes no risk is present under this arrangement due to other suppliers being readily available.
Note E - Operating leases
The Company leases office and warehouse facilities in Texas and California under operating lease agreements with lease terms through February 2011. The leases require a monthly base rental payment plus an additional charge for common area maintenance and operating expenses.
27
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
December 31, 2005
Note E - Operating leases, continued
Future minimum rentals payable, including the new agreements, are as follows:
Year
Amount
2006
72,766
2007
64,473
2008
70,734
2009
73,583
2010
89,288
$
370,844
Rent
  expense included in the accompanying statement of income and accumulated deficit
  for the year ended December 31, 2005 was $57,853.
Note F - Letter of Intent
In September 2005, the Company entered into a letter of intent under which the purchaser would acquire substantially all assets of the Company and subsidiary in exchange for retirement of Company debt, cash, and stock options in the purchasing entity for key employees.
28
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
December 31, 2005
Note A - Summary of significant accounting policies
Nature of operations
Southern
    Imaging, Inc. ("the Company") is a Subchapter S corporation organized
    in Texas on August 5, 1997. The Company's wholly owned subsidiary, Video
    Solutions Technology Center, Inc., is a Nevada corporation formed in January
    1997 and operates in California. The Company designs, sources and distributes
    innovative video and imaging products for the biomedical, industrial and
    security markets.
Principles of consolidation
The
    consolidated financial statements as of and for the year ended December 31,
    2005 include the accounts of Southern Imaging, Inc. and Video Solutions Technology
    Center, Inc. after elimination of all material intercompany accounts and
    transactions.
Use of estimates
The preparation of financial statements in conformity 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.
Cash and cash equivalents
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents.
Concentrations of credit risk
The Company maintains its cash balances in one financial institution. The Federal Deposit Insurance Corporation insures the balances up to $100,000. At December 31, 2005, the uninsured balance totaled approximately $68,000.
Accounts receivable
It is the policy of management to review the outstanding accounts receivable at year end, as well as the bad debt write offs experienced in the past, and establish an allowance for doubtful accounts. As of December, 31, 2005, the allowance for doubtful accounts amounted to $37,826.
Inventory
Inventory is stated at the lower of cost or market. Cost is determined using the average cost method.
Property and equipment
Property and equipment are recorded at cost and depreciated using the straight-line method for financial reporting purposes over estimated useful lives of 3-10 years.
29
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
December 31, 2004
Note A - Summary of significant accounting policies, continued
Revenue recognition
The financial statements are presented on the accrual basis of accounting. Sales revenues are recognized upon the shipment of merchandise to customers. Allowances for sales returns are recorded as a component of net sales in the period the allowance is recognized.
Freight costs
Freight costs are included in cost of goods sold and expensed as incurred. Total freight and shipping expense for the year ended December 31, 2004 was $199,652.
Federal income taxes
No provision or liability for Federal income tax has been recorded by the parent company, Southern Imaging, Inc. As a Subchapter S corporation, stockholders of Southern Imaging, Inc. are taxed on their proportionate share of the Company's taxable income as provided by the rules of the Internal Revenue Code.
Income taxes are provided for the tax effects of transactions reported in the financial Statements and consist of taxes currently payable by the subsidiary, Video Solutions Technology Center, Inc.
Advertising expense
Advertising costs are expensed as incurred. Advertising expense amounted to $56,610 for the year ended December 31, 2004.
Note B - Lines of credit
The Company maintains a line of credit agreement with First National Bank. The agreement provides for a revolving line of credit aggregating $1,700,000 for working capital purposes, which matures April 1, 2006. The agreement is secured by a first lien security interest in all unencumbered assets of the Company and Subsidiary and guaranteed by the owners of the Company. Interest is payable monthly at a floating variable interest rate of prime plus 1%. The agreement requires maintenance of financial ratios and certain covenants, including minimum tangible net worth, which increases quarterly. As of December 31, 2004, the Company had a balance of $1,390,000 drawn on the line.
In addition, the Company maintains a $25,000 line of credit with Compass Bank. The agreement is unsecured and requires minimum monthly payments of $50 or 2% of the principal balance. Interest is calculated at a floating variable interest rate of prime plus 1%. The outstanding principal balance at December 31, 2004 was $13,831.
30
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
December 31, 2004
Note B - Lines of credit, continued
Maturities of long-term debt are as follows:
Year ending
December 31
Amount
2005
$
3,756
2006
1,393,948
2007
4,150
2008
1,977
$
1,403,831
At December 31, 2004, the prime rate was 5.25%.
Note C - Related party bores payable
Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.
The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank. The balance of the note as of December 31, 2004 was $570,000.
The note agreement to Jim Pritchett requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and the note to Arthur Thompson. The balance of the note as of December 31, 2004 was $42,160.
Note D - Concentrations
Major customer
Sales for 2004 include sales to one major customer. The major customer accounted for 9% of total company sales. Accounts receivable, from this customer totaled 14% of total receivables as of December 31, 2004.
Major suppliers
Inventory purchases for the year ended December 31, 2004 included purchases from three major suppliers that accounted for 17%, 13% and 11% of total inventory purchases. Management believes no risk is present under this arrangement due to other suppliers being readily available.
31
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
December 31, 2004
Note E - Operating leases
The company leases office and warehouse facilities in Texas and California under operating lease agreements with lease terms through February 2011. The leases require a monthly base rental, payment plus an additional charge for common area maintenance and operating expenses.
During 2004, the Company extended its lease in California through September 2006.
In June 2005, the Company entered into a 66 month operating lease agreement for office and warehouse space in Carrollton, Texas commencing September 1, 2005.
Future minimum rentals payable, including the new agreements, are as follows:
Year
Amount
2005
$
49,923
2006
72,766
2007
64,473
2008
70,734
2009
73,583
Thereafter
89,288
$
420,767
Rent expense included in the accompanying statement of income and accumulated deficit for the year ended December 31, 2004 was $63,319.
Note F - Letter of Intent
In June 2005, the Company entered into a letter of intent under which the purchaser would acquire all assets of the Company and subsidiary in exchange for cash and stock in the purchasing entity.
32
Ken Hughes & Associates, PC
Certified Public Accountants & Consultants
INDEPENDENT AUDITORS' REPORT
Southern Imaging, Inc., and Subsidiary
Board of Directors
We have reviewed the accompanying consolidated balance sheet of Southern Imaging, Inc., and subsidiary as of March 31, 2006, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in this financial statement is the representation of the management Southern Imaging, Inc.
A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with U.S. generally accepted auditing standards the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Because we were not engaged to review the consolidated statements of income, accumulated deficit, and cash flows, we did not extend our review procedures to enable us to express assurance on the results of operations and cash flows for the three months ended March 31, 2006. Accordingly, we express no assurance on them.
Based on our review, we are not aware of any material modifications that should be made to the accompanying balance sheet in order for it to be in conformity with U. S. generally accepted accounting principles.
June 7, 2006
4880 Long Prairie Rd., Ste. 100 Flower Mound, Texas 75028
TEL (972) 221-2500 (800) 221-2509 FAX (972) 436-8887
www.fmancialshop.com
33
Ken Hughes & Associates, PC
Certified Public Accountants & Consultants
INDEPENDENT AUDITORS' REPORT
Southern Imaging, Inc., and Subsidiary
Board of Directors
We have reviewed the accompanying consolidated balance sheet of Southern Imaging, Inc., and subsidiary as of March 31, 2005, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in this financial statement is the representation of the management Southern Imaging, Inc.
A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with U.S. generally accepted auditing standards the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Because we were not engaged to review the consolidated statements of income, accumulated deficit, and cash flows, we did not extend our review procedures to enable us to express assurance on the results of operations and cash flows for the three months ended March 31, 2005. Accordingly, we express no assurance on them.
Based on our review, we are not aware of any material modifications that should be made to the accompanying balance sheet in order for it to be in conformity with U.S. generally accepted accounting principles.
June 7, 2006
4880 Long Prairie Rd., Ste. 100 Flower Mound, Texas 75028
TEL (972) 221-2500 (800) 221-2509 FAX (972) 436-8887
www.fmancialshop.com
34
Southern Imaging, Inc. and Subsidiary
Condensed Consolidated Balance Sheet
(in thousands)
(Unaudited - see accountants' report)
March
        31, 2006
March
        31, 2005
Assets
Current
        assets:
Cash
$
295
$
28
Accounts
        receivable, net of an allowance for doubtful accounts of $49,808 and $45,755
2,193
991
Inventory
2,143
1,813
Prepaid
        expenses
23
35
Total
        current assets
4,654
2,867
84
59
Property
        and equipment:
Other
        assets
3
4
Total
        assets
$
4,741
$
2,930
Liabilities
        and Stockholders' Equity
Current
        liabilities:
Accounts
        payable and accrued liabilities
$
1,523
$
627
Related
        party notes payable
612
612
Line
        of credit
1,863
1,503
Total
        current liabilities
3,998
2,742
Total
        liabilities
3,998
2,742
Stockholders'
        equity:
Total
        stockholders' equity
743
188
Total
        liabilities and stockholders' equity
$
4,741
$
2,930
35
Southern Imaging, Inc. and Subsidiary
Consolidated Statement of Operations
For the Three Months Ended
(in thousands)
(Unaudited - see accountants' report)
March 31, 2006
March 31, 2005
Revenue
$
3,754
$
1,716
Cost of goods sold
2,932
1,241
Gross profit
822
475
Operating expenses:
430
367
General and administrative expenses
430
367
Total operating expenses
Net income from operations
392
108
Other income (expense):
Interest expense
(76
)
(50
)
Total other income (expense)
(76
)
(50
)
Net income
$
316
$
58
36
Southern Imaging, Inc. and Subsidiary
Consolidated Statement of Cash Flows
For the Three Months Ended
(in thousands)
(Unaudited - see accountants' report)
March
        31, 2006
March
        31, 2005
Cash
        flows from operating activities:
Net
        Income
$
315
$
59
Adjustments
        to reconcile net income to net cash used in operating activities:
Depreciation
        and amortization
18
3
Bad
        debts
19
—
Change
        in operating accounts:
Increase
        in accounts receivable
(985
)
89
Increase
        in inventory
(174
)
(167
)
Increase
        in prepaid expenses
(23
)
(32
)
Decrease
        in Federal income taxes payable
—
(8
)
Increase
        in accounts payable and accrued liabilities
566
(161
)
(579
)
(276
)
Net
        cash used in operating activities
(264
)
(217
)
Cash
        flows from investing activities:
Purchase
        of property and equipment
(6
)
(5
)
Net
        cash used in investing activities
(6
)
(5
)
Cash
        flows from financing activities:
Proceeds
        from line of credit
1,863
100
Repayments
        of line of credit
(1,490
)
(1
)
Net
        cash provided by financing activities
373
99
Net
        increase (decrease) in cash
103
(123
)
Cash
        at beginning of period
192
151
Cash
        at end of period
$
295
$
28
Supplemental
        disclosure:
Cash
        paid for interest
$
76
$
42
Cash
        paid for taxes
$
—
$
8
Non-cash
      investing and financing activities:
Accrued
        distributions to stockholders
$
161
$
24
37
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
March 31, 2006
Note A - Summary of significant accounting policies
Nature of operations
Southern Imaging, Inc. ("the Company") is a Subchapter S corporation organized in Texas on August 5, 1997. The Company's wholly owned subsidiary, Video Solutions Technology Center, Inc. is a Nevada corporation formed in January 1997 and operates in California. The Company designs, sources and distributes innovative video and imaging products for the biomedical, industrial and security markets.
Principles of consolidation
The consolidated financial statements as of and for the three months ended March 31, 2006, include the accounts of Southern Imaging, Inc. and Video Solutions Technology Center, Inc. after elimination of all material intercompany accounts and transactions.
Use of estimates
The preparation of financial statements in conformity 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.
Cash and cash equivalents
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents.
Concentrations of credit risk
The Company maintains its cash balances in one financial institution. The Federal Deposit Insurance Corporation insures the balances up to $100,000. At March 31, 2006, the uninsured balance totaled approximately $207,000.
Accounts receivable
It is the policy of management to review the outstanding accounts receivable at year end, as well as the bad debt write offs experienced in the past, and establish an allowance for doubtful accounts. As of March 31, 2006, the allowance for doubtful accounts amounted to $49,808.
Inventory
Inventory is stated at the lower of cost or market. Cost is determined using the average cost method.
Property and equipment
Property and equipment are recorded at cost and depreciated using the straight-line method for financial reporting purposes over estimated useful lives of 3-10 years.
38
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
March 31, 2006
Note A - Summary of significant accounting policies, continued
Federal income taxes
No
    provision or liability for Federal income tax has been recorded by the parent
    company, Southern Imaging, Inc. As a Subchapter S corporation, stockholders
    of Southern Imaging, Inc. are taxed on their proportionate share of the Company's
    taxable income as provided by the rules of the Internal Revenue Code.
Income
    taxes are provided for the tax effects of transactions reported in the financial
    statements and consist of taxes currently payable by the subsidiary, Video
    Solutions Technology Center, Inc. For the period ended March 31, 2006, there
was no Federal income tax payable by the subsidiary.
Note B - Line of credit
In February 2006, the Company executed a line of credit agreement with Bank of Texas. The Bank of Texas line has a limit of $2,500,000, carries an interest rate equal to the BOKF National Prime Rate, and matures January 2007. The line is secured by all
assets of the Company and limited personal guarantees of four of the stockholders of the Company. The agreement requires maintenance of financial ratios and certain covenants and monthly payments of accrued interest calculated on the outstanding balance at the variable rate described above.
Note C - Related party notes payable
Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.
The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and subsequently to the Bank of Texas line. The balance of the note as of March 31, 2006, was $570,000.
The note agreement to Jim Pritchett requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank, and subsequently to the Bank of Texas line, and the note to Arthur Thompson. The balance of the note as of March 31, 2006 was $42,160.
39
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
March 31, 2006
Note D - Concentrations
Major customer
Accounts receivable on the accompanying balance sheet includes receivables for sales to two major customers. The major customers accounted for 15% and 14% of total company receivables at March 31, 2006.
Major suppliers
Accounts payable as of March 31, 2006, includes payables for purchases from four major suppliers that accounted for 42%, 15%, and two at 10% each of total accounts payable. Management believes no risk is present under this arrangement due to other suppliers being readily available.
Note E - Operating leases
The Company leases office and warehouse facilities in Texas and California under operating lease agreements with lease terms through February 2011. The leases require a monthly base rental payment plus an additional charge for common area maintenance and operating expenses.
Future minimum rentals payable, including the new agreements, are as follows:
Year
Amount
2007
$
73,585
2008
70,718
2009
72,689
2010
75,086
2011
70,158
$
362,236
40
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
March 31, 2005
Note A - Summary of significant accounting policies
Nature of operations
Southern
    Imaging, Inc. ("the Company") is a Subchapter S corporation organized
    in Texas on August 5, 1997. The Company's wholly owned subsidiary, Video
    Solutions Technology Center, Inc., is a Nevada corporation formed in January
    1997 and operates in California. The Company designs, sources and distributes
    innovative video and imaging products for the biomedical, industrial and
    security markets.
Principles of consolidation
The
    consolidated financial statements as of and for the three months ended March
    31, 2006 include the accounts of Southern Imaging, Inc. and Video Solutions
    Technology Center, Inc. after elimination of all material intercompany accounts
    and transactions.
Use of estimates
The preparation of financial statements in conformity 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.
Cash and cash equivalents
The Company considers all highly liquid investments with maturities of three months or less
when purchased to be cash equivalents.
Accounts receivable
It is the policy of management to review the outstanding accounts receivable at year end, as well as the bad debt write offs experienced in the past, and establish an allowance for doubtful accounts. As of March 31, 2005, the allowance for doubtful accounts amounted to $45,755.
Inventory
Inventory is stated at the lower of cost or market. Cost is determined using the average cost method.
Property and equipment
Property and equipment are recorded at cost and depreciated using the straight-line method for financial reporting purposes over estimated useful lives of 3-10 years.
Federal income taxes
No provision or liability for Federal income tax has been recorded by the parent company Southern Imaging, Inc. As a Subchapter S corporation, stockholders of Southern Imaging, Inc. are taxed on their proportionate share of the Company's taxable income as provided by the rules of the Internal Revenue Code.
41
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
March 31, 2005
Note A - Summary of significant accounting policies, continued
Federal income taxes, continued
Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable by the subsidiary, Video Solutions Technology Center, Inc. For the period ended March 31, 2005, there was no Federal income tax payable by the subsidiary.
Note B - Lines of credit
The Company maintains a line of credit agreement with First National Bank. The agreement provides for a revolving line of credit aggregating $1,700,000 for working capital purposes, which matures April 1, 2006. The agreement is secured by a first lien security interest in all unencumbered assets of the Company and Subsidiary and guaranteed by the owners of the Company. Interest is payable monthly at a floating variable interest rate of prime plus 1%. The agreement requires maintenance of financial ratios and certain covenants, including minimum tangible net worth, which increases quarterly. As of March 31, 2005, the Company had a balance of $1,490,000 drawn on the line.
In addition, the Company maintains a $25,000 line of credit with Compass Bank. The agreement is unsecured and requires minimum monthly payments of $50 or 2% of the principal balance. Interest is calculated at a floating variable interest rate of prime plus 1%. The outstanding principal balance at March 31, 2005, was $12,947.
Note C -Related party notes payable
Notes payable to related parties consist of two unsecured demand notes payable to shareholders of the Company.
The note agreement to Arthur Thompson requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank and subsequently to the Bank of Texas line. The balance of the note as of March 31, 2005 was $570,000.
The note agreement to Jim Pritchett requires monthly interest payments at 12% and is secured by all assets of the Company, tangible and intangible, subordinated only to liens and covenants of the line of credit with First National Bank, and subsequently to the Bank of Texas line, and the note to Arthur Thompson. The balance of the note as of March 31, 2005 was $42,160.
42
Southern Imaging, Inc. and Subsidiary
Consolidated Notes to Financial Statements
March 31, 2005
Note D - Concentrations
Major customer
Accounts receivable on the accompanying balance sheet includes receivables for sales to two major customers. The major customers accounted for 11% and 14% of total company receivables at March 31, 2005.
Major suppliers
Accounts payable as of March 31, 2005, includes payables for purchases from four major suppliers that accounted for 22%, 13%, 12%, and 11% each of total accounts payable. Management believes no risk is present under this arrangement due to other suppliers being readily available.
Note E - Operating leases
In September 2005, the Company executed an operating lease agreement for office and warehouse facilities in Texas. The Company also leases space in California under operating lease agreements. The leases require a monthly base rental payment plus an additional charge for common area maintenance and operating expenses.
Future minimum rentals payable, including the new agreements, are as follows:
Year
Amount
2006
$
33,959
2007
73,585
2008
70,718
2009
72,689
2010
75,086
Thereafter
70,158
$
396,195
Note F - Subsequent event
In
    February 2006, the Company executed a line of credit agreement with Bank
    of Texas. The Bank of Texas line has a limit of $2,500,000, carries an interest
    rate equal to the BOKF National Prime Rate, and matures January 2007. The
    line is secured by all assets of the Company and limited personal guarantees
    of
    four of the stockholders of the Company. The agreement requires maintenance
    of financial ratios and certain covenants and monthly payments of accrued
    interest calculated on the outstanding balance at the variable rate described
    above.
43
Dynabazaar, Inc
Unaudited Pro Forma Condensed Consolidated Financial Statements
(Dollars in thousands)
Introduction
On
    June 20, 2006, Dynabazaar, Inc. (the "Company") completed the
    acquisition of principally all of the assets of Southern Imaging, Inc.
	and its wholly owned subsidiary Video Solutions Technology Center, Inc. (collectively, "Southern
    Imaging"), which together design, source,  distribute and repair video imaging products
    for the industrial and security markets. The net assets acquired primarily
    include receivables, inventories and other identifiable intangible assets
    net of certain current liabilities.
The
    following unaudited pro forma financial statements give effect to the acquisition
    of the assets of Southern Imaging, assuming that the transaction took place
    as of March 31, 2006. The pro forma adjustments are described in the accompanying
    notes to the unaudited pro forma condensed consolidated financial statements.
    Such unaudited pro forma condensed  consolidated  financial statements should
    be read
in conjunction with Southern Imaging's financial statements and notes included
herein for the year ended December 31, 2005 and the three month (13 week) period
ended March 31, 2006.
Under
    the purchase method of accounting, the purchase price is allocated to the
    underlying tangible and intangible assets acquired and liabilities assumed
    based on their respective fair market values, with the excess recorded as
    goodwill. These unaudited pro forma condensed consolidated financial statements
    reflect preliminary estimates of fair market value of the assets acquired
    and liabilities assumed in the acquisition, including preliminary valuations
    of intangible assets and property and equipment. The final determination
    of the fair market value of assets acquired and liabilities assumed and final
    allocation of the purchase price may differ from the amounts assumed in these
    unaudited pro forma condensed  consolidated  financial statements, and there
    can
be no assurance that any adjustments will not be material.
The
    unaudited pro forma condensed consolidated financial statements are provided
    for illustrative purposes only and do not purport to represent what the actual
    consolidated results of operations of the consolidated financial position
    of the Registrant would have been had the acquisition of Southern Imaging
    been consummated on March 31, 2006 nor are they necessarily indicative of
future consolidated results of operations of financial position.
44
DYNABAZAAR, INC
UNAUDITED PRO-FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, 2006
DYNABAZAAR
SOUTHERN
IMAGING
ADJUSTMENTS
CONSOLIDATED
Assets:
Current
              assets:
Cash
$
9,005
$
295
$
(5,402
)
$
3,498
Accounts receivable, net
—
2,193
—
2,193
Inventory
—
2,143
—
2,143
Other
379
23
402
Total current assets
9,384
4,654
(5,402
)
8,636
Long term pre-paid expenses
913
913
Property and equipment net
—
84
—
84
Other
—
3
—
3
Goodwill
—
—
2,259
(3)
2,259
Intangible assets
—
—
—
—
Total assets
$
10,297
$
4,741
$
(3,143
)
$
11,895
Liability
        & Stockholders' Equity
Current liabilities
Accounts payable
$
—
$
1,328
$
—
$
1,328
Long term debt & notes payable
—
2,475
(2,475
)
1,863
Other accrued expenses
134
196
—
330
Total liabilities
134
3,999
(2,475
)
1,653
Stockholders' equity
10,163
742
(2,475
)
10,237
Total
            liabilities and shareholders equity
10,297
4,741
(3,143
)
11,895
45
DYNABAZAAR, INC
UNAUDITED
PRO-FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
For the Three Month Period Ending March 31, 2006
DYNABAZAAR
SOUTHERN
IMAGING
PRO FORMA
ADJUSTMENT
CONSOLIDATED
Revenues
$
—
$
3,753
$
—
$
3,753
Cost of revenues
—
2,932
—
2,932
Gross profit
—
821
—
821
Operating expenses:
General & administrative
215
430
—
645
Total operating expenses
215
430
—
645
Income (loss) from operations
(215
)
391
—
176
Interest
103
(76
)
—
27
Net
                  income (loss) before income tax expense
(112
)
315
—
203
Income
                Tax Expense
—
—
(81
)
(81
)
Net
                Income (loss)
(112
)
315
(81
)
122
Notes to Unaudited Pro Forma Condensed Combined Financial Statements
1.
    To record the cash utilized to purchase the assets of Southern Imaging, including
    related fees of approximately
  $400. The fees include $110 paid to Barington Capital Group, L.P., a Stockholder
    of Dynabazaar, Inc., for investment banking services rendered.
2.
  To reflect the payment of certain notes payable.
3.
  To reflect the excess of acquisition cost over the estimated fair value of net
  assets acquired (i.e. Goodwill), based on a preliminary purchase price allocation,
  which is subject to independent valuation prior to finalization.
46
DYNABAZAAR. INC,
UNAUDITED
PRO-FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in
  thousands)
December 31, 2005
DYNABAZAAR
SOUTHERN
IMAGING
ADJUSTED
CONSOLIDATED
Revenues
$
—
$
9,206
$
—
$
9,206
Cost of revenues
—
6,955
—
6,955
Gross profit
—
2,251
—
2,251
Operating
                expenses:
General & administrative
1,119
1,627
—
2,746
Total
        operating expenses
1,119
1,627
—
2,746
Income (loss) from operations
(1,119
)
623
—
(496
)
Interest
375
(182
)
—
193
Gain on sale of assets
2,000
2,000
Other expense
(1
)
—
(1
)
Net
           income (loss) before income tax expense
1,256
440
—
1,696
Income
	  Tax Expense
—
—
(176
)
(176
)(6)
Net
           Income
$
1,256
$
440
$
(176
)
$
1,520
47