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<DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
STATES</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
D.C. 20549</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-----------------</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
8-K</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 13 or 15(d) of</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
Securities Exchange Act of 1934</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date of
Report (Date of earliest event reported): April 8, 2005</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT size=2></FONT><BR><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MICROHELIX,
INC.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
name of Registrant as specified in its charter)</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center>&nbsp;</DIV>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%" bgColor=#ffffff>
  <TR bgColor=#ffffff>
    <TD width="31%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Oregon</FONT></DIV></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">001-16781</FONT></DIV></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91-1758621</FONT>&nbsp;</DIV></TD></TR>
  <TR bgColor=#ffffff>
    <TD width="31%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
      or other jurisdiction</FONT></DIV></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
      File No.)</FONT>&nbsp;</DIV></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
      Employer</FONT>&nbsp;</DIV></TD></TR>
  <TR bgColor=#ffffff>
    <TD width="31%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      incorporation)</FONT></DIV></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
      No.)</FONT>&nbsp;</DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV align=left>&nbsp;</DIV>
<DIV align=left>&nbsp;</DIV>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%" bgColor=#ffffff>
  <TR bgColor=#ffffff>
    <TD width="50%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16125
      SW 72</FONT><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><SUP>nd</SUP></FONT><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Avenue, Portland, Oregon</FONT></DIV></TD>
    <TD width="50%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">97224</FONT></DIV></TD></TR>
  <TR bgColor=#ffffff>
    <TD width="50%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of principal executive offices)</FONT></DIV></TD>
    <TD width="50%"><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
      Code)</FONT></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant's
telephone number, including area code: 503-968-1600</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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><FONT size=2></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top align=left width="7%">&nbsp;</TD>
    <TD vAlign=top align=left width="66%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="7%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><FONT
      face=Wingdings>o</FONT></FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="66%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="66%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="7%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><FONT
      face=Wingdings>o</FONT></FONT></DIV></FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="66%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="66%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="7%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><FONT
      face=Wingdings>o</FONT></FONT></DIV></FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="66%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="66%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="7%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><FONT
      face=Wingdings>o</FONT></FONT></DIV></FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="66%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</FONT></DIV></TD></TR></TABLE></DIV>
<DIV>&nbsp;</DIV>
<DIV>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman"></FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG></STRONG></FONT>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
1.01. Entry into a Material Definitive Agreement.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix,
      Inc. ("microHelix") entered into a Merger Agreement on April 8, 2005 and
      acquired 100% of the outstanding stock of Moore Electronics, Inc., an
      Oregon corporation ("MEI"), from two shareholders (the "Merger"). The
      purchase price for the stock of MEI was $3.0 million, which consisted of
      $1.5 million in cash, $1.25 million in a promissory note (the "Promissory
      Note") and $0.25 million in shares of microHelix Series B Preferred Stock,
      no par value ("Series B Preferred Stock"). microHelix also refinanced $0.4
      million of bank debt owed by MEI. The Promissory Note bears interest at
      10% per annum, with interest only payable for the first three months, and
      then principal and interest amortized in monthly payments over the next 33
      months. The Promissory Note may be prepaid at any time without penalty.
      </FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      and MEI entered into a Security Agreement on April 8, 2005 under which
      they granted security interests in substantially all of their assets as
      security for payment of the Promissory
Note.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      entered into Series B Preferred Stock Purchase Agreements on April 8, 2005
      with purchasers of 2.0 million shares of Series B Preferred Stock at a
      purchase price of $1.00 per share.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      entered into a Registration Rights Agreement on April 8, 2005 with
      purchasers of its Series B Preferred Stock under which they have one
      demand registration right and piggy-back registration
    rights.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      and MEI entered into an Amended and Restated Loan and Security Agreement
      with BFI Business Finance dated as of April 5, 2005 that became effective
      on April 8, 2005 (the "Loan Agreement") under which microHelix and MEI can
      borrow up to $1.5 million, subject to advance rates on accounts receivable
      and inventories. The Loan Agreement amends and restates in its entirety
      the existing loan and security agreement dated October 7, 2004 between
      microHelix and BFI Business Finance. The Loan Agreement is scheduled to
      expire on April 8, 2006. microHelix and MEI have granted security
      interests in the Loan Agreement to BFI Business Finance covering
      substantially all of their respective
assets.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrowings
under the Loan Agreement will be used to refinance existing bank debt owed by
microHelix and MEI, to pay a portion of the purchase price of the MEI stock
acquired by microHelix in the Merger and for general corporate purposes.
Borrowings under the Loan Agreement will bear interest at the "deemed prime
rate" plus 5%. The "deemed prime rate" equals the greater of the prime rate as
published in The Wall Street Journal or 5.25%. The Loan Agreement contains
customary affirmative and negative covenants and events of default for a secured
financing arrangement, including, among other things, limitations on
consolidations, mergers and sales of assets. </FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      entered into a Stock Pledge Agreement on April 5, 2005 that became
      effective on April 8, 2005 under which it pledged all of the stock of MEI
      as collateral to BFI Business Finance with respect to obligations owed
      under the Loan Agreement.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      and MEI entered into an Employment Agreement on April 8, 2005 under which
      microHelix and MEI will employ Marti D. Lundy as a Vice President of each
      corporation through March 31, 2008 for base compensation, payable by MEI,
      of $150,000 per year plus benefits.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      entered into an oral arrangement on April 8, 2005 under which it agreed to
      compensate Tyram H. Pettit as its President and Chief Executive Officer
      for base compensation of $120,000 per year plus
  benefits.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">2</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      on April 8, 2005 granted the following directors and named executive
      officer shares of its common stock, no par value ("Common Stock"), in
      recognition of service to microHelix and in recognition of the recipients'
      extraordinary contributions with respect to the acquisition of
      MEI:</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT size=2><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tyram
      H. Pettit</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director,
      President and</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Executive Officer</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48,000
      shares</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="20%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">James
      M. Williams</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,000
      shares</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="20%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
      L. Crary</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,000
      shares</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="20%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Terrence
      A. Rixford</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
width="5%"></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV></TD></TR></TABLE></DIV>
<DIV></FONT><FONT size=2>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%"></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,000
      shares</FONT></DIV></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top align=left width="20%">&nbsp;</TD>
    <TD vAlign=top align=left width="5%">&nbsp;</TD>
    <TD vAlign=top align=left
width="45%">&nbsp;</TD></TR></TABLE></DIV></FONT></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
has discontinued its policy of granting options for 3,334 shares of its Common
Stock to each of its directors following each annual meeting of shareholders.
The grants of Common Stock were made pursuant to the terms of microHelix's 2001
Stock Incentive Plan and 2002 Nonqualified Stock Option Plan. The foregoing
grants of Common Stock are unrestricted and fully vested. </FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(j)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      on April 8, 2005 granted cash bonuses to the following directors and named
      executive officer to recognize their extraordinary efforts in connection
      with their individual contributions with respect to the acquisition of
      MEI:</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%"></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tyram
      H. Pettit</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director,
      President and</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Executive Officer</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$25,000</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="20%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="45%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Terrence
      A. Rixford</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=center>&nbsp;</DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="20%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=center><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="45%">
      <DIV style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$15,000</FONT></DIV></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top align=left width="20%">&nbsp;</TD>
    <TD vAlign=top align=left width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="45%">&nbsp;</TD></TR></TABLE></DIV></FONT><FONT
size=2></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT></DIV><FONT
size=2></FONT>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 18pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(k)&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MEI
      on April 7, 2005 entered into a Third Addendum to Lease with respect to
      its leased facility in Tualatin, Oregon. The Third Addendum to Lease
      extended the lease on MEI's 33,000 square foot facility through August 14,
      2008.</FONT></DIV></TD></TR></TABLE></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG></STRONG></FONT>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
1.02. Termination of a Material Definitive Agreement.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
April 8, 2005 microHelix and BFI Business Finance amended and restated in its
entirety the loan and security agreement dated October 7, 2004 between them. See
paragraph (e) of Item 1.01 of this Form 8-K.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
2.01. Completion of Acquisition or Disposition of Assets.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
entered into a Merger Agreement on April 8, 2005 and acquired 100% of the
outstanding stock of MEI from two shareholders of MEI. MEI, headquartered in
Tualatin, Oregon, is a manufacturer of custom and complex cable assemblies,
sub-assemblies, wire harnesses and electro-mechanical assemblies that serves
major medical equipment manufacturers and commercial equipment manufacturers.
</FONT><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
acquisition was accomplished by the merger of a subsidiary of microHelix with
and into MEI, with MEI being the surviving corporation and a wholly-owned
subsidiary of microHelix. </FONT><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MEI
occupies a leased 33,000 square foot facility and employees 130 people. For the
year ended<BR>December 31, 2004 MEI recorded unaudited sales of approximately
$11.1 million and operating income of approximately $75,000.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">3</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
purchase price for the stock of MEI was $3.0 million, which consisted of $1.5
million in cash, $1.25 million in a promissory note and $0.25 million in shares
of microHelix Series B Preferred Stock. microHelix also refinanced $0.4 million
of bank debt owed by MEI. Funds for the acquisition were obtained from the
private placement of microHelix Series B Preferred Stock and from microHelix's
revolving line of credit under the Loan Agreement. </FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See Item
1.01 of this Form 8-K for additional information regarding the acquisition of
MEI.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
2.03. Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant.</STRONG></FONT><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV align=center>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top align=left width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      and MEI entered into an Amended and Restated Loan and Security Agreement
      with BFI Business Finance dated as of April 5, 2005 that became effective
      on April 8, 2005 (the "Loan Agreement") under which microHelix and MEI can
      borrow up to $1.5 million, subject to advance rates on accounts receivable
      and inventories. The Loan Agreement amends and restates in its entirety
      the existing loan and security agreement dated October 7, 2004 between
      microHelix and BFI Business Finance. The Loan Agreement is scheduled to
      expire on April 8, 2006. microHelix and MEI have granted security
      interests in the Loan Agreement to BFI Business Finance covering
      substantially all of their respective assets.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrowings
      under the Loan Agreement will be used to refinance existing bank debt owed
      by microHelix and MEI, to pay a portion of the purchase price of the MEI
      stock acquired by microHelix in the Merger and for general corporate
      purposes. Borrowings under the Loan Agreement will bear interest at
      variable rates equal to the "deemed prime rate" plus 5%. The "deemed prime
      rate" equals the greater of the prime rate as published in The Wall Street
      Journal or 5.25%. The Loan Agreement contains customary affirmative and
      negative covenants and events of default for a secured financing
      arrangement, including, among other things, limitations on consolidations,
      mergers and sales of assets. </FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      entered into a Stock Pledge Agreement on April 5, 2005 that became
      effective on April 8, 2005 under which it pledged all of the stock of MEI
      as collateral to BFI Business Finance with respect to obligations owed
      under the Loan Agreement.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      on April 8, 2005 issued a promissory note (the "Promissory Note") to Marti
      D. Lundy in the original principal amount of $1.25 million. The Promissory
      Note bears interest at 10% per annum, with interest only payable for the
      first three months, and then principal and interest amortized in monthly
      payments over the next 33 months. The Promissory Note may be prepaid at
      any time without penalty. Ms. Lundy is an officer and director of MEI, is
      an officer of microHelix and will become a director of microHelix
      effective May 8, 2005.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      on April 8, 2005 sold 2,000,000 shares of its Series B Preferred Stock for
      $1.00 per share in a private placement and issued 250,000 shares of its
      Series B Preferred Stock as part of the purchase price for MEI. Each share
      of Series B Preferred Stock is eligible for a cumulative dividend of $0.15
      per share (as adjusted for stock splits, stock dividends, reclassification
      and the like) per annum, payable quarterly when, as and if declared by the
      Board of Directors of microHelix. The Board of Directors of microHelix may
      elect to pay such dividend in cash or in shares of microHelix Common
      Stock. Each share of Series B Preferred Stock is convertible into four
      shares of microHelix Common Stock. microHelix has the option after April
      8, 2006 to redeem outstanding shares of Series B Preferred Stock for $1.50
      per share (as adjusted for stock splits, stock dividends, reclassification
      and the like). </FONT></DIV></TD></TR></TABLE></DIV>
<DIV>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">4</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
      as expressly provided by the Amended and Restated Articles of
      Incorporation, as amended, of microHelix (the "Articles") or as provided
      by law, the holders of Series B Preferred Stock have the same voting
      rights as the holders of Common Stock and are entitled to notice of any
      shareholders meeting in accordance with the Bylaws of microHelix, and the
      holders of Common Stock and the Series B Preferred Stock vote together as
      a single class on all matters. Each holder of Series B Preferred Stock is
      entitled to the number of votes equal to the number of shares of Common
      Stock into which such shares of Series B Preferred Stock could at the time
      of such vote be converted.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of the date of the initial filing of this Form 8-K, there are 2,082,746
      shares of Common Stock outstanding and entitled to vote. As of the date of
      the initial filing of this Form 8-K, holders of Series B Preferred Stock
      have the right to 9,000,000 votes on an as-converted basis.
    </FONT></DIV></TD></TR>
  <TR>
    <TD vAlign=top align=left width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="95%">&nbsp;</TD></TR></TABLE></DIV></DIV>
<DIV></DIV><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
3.02. Unregistered Sale of Equity Securities.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      on April 8, 2005 sold 2,000,000 shares of Series B Preferred Stock. The
      total offering price for the Series B Preferred Stock was $1.00 per share
      for total gross cash proceeds of $2.0 million. microHelix on April 8, 2005
      also issued 250,000 shares of Series B Preferred Stock to a selling
      shareholder as partial consideration in the Merger. Shares of Series B
      Preferred Stock were issued in reliance on Regulation D promulgated under
      the Securities Act of 1933, as amended (the "Securities Act") and
      microHelix obtained representations from the investors as to their status
      as "accredited investors" as that term is defined in Regulation
      D.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      share of Series B Preferred Stock is convertible into four shares of
      Common Stock. microHelix can redeem the shares of Series B Preferred Stock
      at any time after April 8, 2006 for $1.50 per share (as adjusted for stock
      splits, stock dividends, reclassification and the like). microHelix
      entered into a Registration Rights Agreement dated as of April 8, 2005
      with the purchasers of the Series B Preferred Stock under which they have
      one demand registration right and piggy-back registration
      rights.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT>&nbsp;</DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      issued warrants on April 8, 2005 to its financial advisor and its
      affiliates to purchase a total of 478,000 shares of Common Stock. Such
      warrants can be exercised through April 7, 2015 for $0.25 per share
      (subject to adjustment for stock splits, stock dividends, reclassification
      and the like). These warrants were issued in reliance on Regulation D
      promulgated under the Securities Act to "accredited investors" as that
      term is defined in Regulation D.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      on April 8, 2005 granted a total of 123,000 shares of Common Stock to six
      of its employees and directors. The grants were unrestricted and were made
      for services previously rendered. The shares were issued under Section
      4(2) of the Securities Act.</FONT></DIV></TD></TR>
  <TR>
    <TD vAlign=top align=left width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="95%">&nbsp;</TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
3.03. Material Modification to Rights of Security Holders.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
amended its Amended and Restated Articles of Incorporation, as amended, on April
8, 2005 by filing a Certificate of Designation with the Oregon Secretary of
State designating 2,250,000 shares of its Preferred Stock as Series B Preferred
Stock. All 2,250,000 shares of Series B Preferred Stock were issued on April 8,
2005. The rights of holders of the Common Stock of microHelix may be materially
limited by the issuance of Series B Preferred Stock in that holders of Series B
Preferred Stock have superior liquidation preferences over the holders of Common
Stock in the event of any liquidation, dissolution or winding up of microHelix,
either voluntary or involuntary. In any such event, the assets of microHelix
would be distributed in the following order:</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT size=2></FONT>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">5</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 36pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First,
      to</FONT><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      the holders of the Series B Preferred Stock until they received an amount
      equal to $2.00 per share (as adjusted for stock splits, stock dividends,
      reclassification and the like) for each share of Series B Preferred Stock
      then held by them, plus cumulative unpaid dividends from the original
      issuance date of such share of Series B Preferred Stock.
  </FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 36pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second,
      to the holders of Common Stock until they receive an amount equal to $0.25
      per share (as adjusted for stock splits, stock dividends, reclassification
      and the like) for each share of Common Stock then held by them, plus any
      cumulative unpaid dividends.</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV>
<TABLE id=list cellSpacing=0 cellPadding=0 width="100%">
  <TR style="LINE-HEIGHT: 1.25" vAlign=top>
    <TD style="WIDTH: 36pt" align=right><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&nbsp;&nbsp;</FONT></TD>
    <TD>
      <DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
      align=justify><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third,
      any remaining assets of microHelix would be distributed pro rata to the
      holders of Common Stock and to the holders of Series B Preferred Stock
      based on the number of shares of Common Stock then held by each holder
      (assuming conversion of all Series B Preferred Stock into Common Stock at
      the then effective conversion rate for the Series B Preferred Stock).
      </FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
issuance of Series B Preferred Stock may also materially affect the rights of
holders of Common Stock with respect to voting on matters brought before the
shareholders of microHelix. See Item 5.01 of this Form 8-K.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
5.01. Changes in Control of Registrant.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immediately
prior to the issuance of Series B Preferred Stock as described in Item 3.02 of
this Form 8-K, microHelix had outstanding 2,082,746 shares of its Common Stock
that were entitled to one vote per share, and had outstanding no shares of
preferred stock. microHelix on April 8, 2005 issued 2,250,000 shares of its
Series B Preferred Stock. Each share of Series B Preferred Stock is convertible
into four shares of microHelix Common Stock. Each holder of Series B Preferred
Stock is entitled to the number of votes equal to the number of shares of Common
Stock into which shares of Series B Preferred Stock could be converted. As of
the date of the initial filing of this Form 8-K, the holders of Series B
Preferred Stock have the right to 9,000,000 votes, which represents
approximately 81% of the votes eligible to be cast, and therefore have the
ability to control microHelix.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
5.02. Election of Director; Appointment of Principal
Officer.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marti D.
Lundy was elected by the Board of Directors of microHelix to serve, beginning
effective May 8, 2005, as a director of microHelix until the next annual meeting
of the shareholders. Effective April 8, 2005 Ms. Lundy was appointed a Vice
President of microHelix. Ms. Lundy is also a Vice President and director of MEI.
Ms. Lundy was formerly a shareholder in MEI and has served since 1978 as the
Vice President of MEI. </FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms. Lundy
received aggregate consideration of $2.0 million from microHelix in connection
with the Merger, consisting of $0.5 million in cash, a promissory note for $1.25
million and 250,000 shares of microHelix's Series B Preferred Stock (with a
deemed value of $250,000). </FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
5.03. Amendment to Articles of Incorporation or Bylaws; Change in Fiscal
Year.</STRONG></FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
amended its Amended and Restated Articles of Incorporation, as amended, on April
8, 2005 by filing a Certificate of Designation designating 2,250,000 shares of
its Preferred Stock as Series B Preferred Stock. </FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">6</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG></STRONG></FONT>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
8.01. Other Events.</STRONG></FONT><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
on April 6, 2005 adopted a </FONT><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">policy on
business ethics for its directors, officers and employees</FONT><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><STRONG>Item
9.01. Financial Statements and Exhibits.</STRONG></FONT><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top align=left width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><EM>Financial
      Statements of Business Acquired</EM></FONT><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      microHelix will file the financial statements required by this item in
      regards to the matters in Item 2.01 of this Form 8-K not later than 71
      calendar days after the initial report on Form 8-K was required to be
      filed.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><EM>Pro
      Forma Financial Information.</EM></FONT><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      microHelix will file the pro forma financial information statements
      required by this item in regards to the matters in Item 2.01 of this Form
      8-K not later than 71 calendar days after the initial report on Form 8-K
      was required to be filed.</FONT></DIV></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left
    width="95%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="5%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</FONT></DIV></TD>
    <TD style="BORDER-BOTTOM: medium none" vAlign=top align=left width="95%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><EM>Exhibits.</EM></FONT><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The following documents are filed as exhibits to this Form
      8-K:</FONT></DIV></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV>
<DIV align=center>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
      of Amendment effective April 8, 2005 to the Amended and Restated Articles
      of Incorporation of microHelix, Inc. relating to Certificate of
      Designation of Series B Preferred Stock</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Merger
      Agreement dated April 8, 2005 among microHelix, Inc., microHelix
      Acquisition Corp., Moore Electronics, Inc., Lawrence T. Moore and Marti D.
      Lundy</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Promissory
      Note dated April 8, 2005 made by microHelix, Inc. in favor of Marti D.
      Lundy</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
      Agreement dated April 8, 2005 among microHelix, Inc., Moore Electronics,
      Inc. and Marti D. Lundy</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
      of Series B Preferred Stock Purchase Agreement dated April 8, 2005 between
      microHelix, Inc. and purchasers of Series B Preferred Stock of microHelix,
      Inc.</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.5</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
      of Registration Rights Agreement dated April 8, 2005 between microHelix,
      Inc. and holders of Series B Preferred Stock</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.6</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Loan and Security Agreement dated as of April 5, 2005 among
      microHelix, Inc., Moore Electronics, Inc. and BFI Business
      Finance</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.7</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
      Pledge Agreement dated as of April 5, 2005 between microHelix, Inc. and
      BFI Business Finance</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.8</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
      Agreement dated April 8, 2005 between Marti D. Lundy and Moore
      Electronics, Inc.</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.9</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lease
      dated August 15, 1999 between Sylvia B. Giustina and Moore Electronics,
      Inc., as modified and amended by a Memorandum of Understanding effective
      January 1, 2001, a First Addendum to Lease effective August 15, 2002, a
      Second Addendum to Lease effective August 15, 2002 and a Third Addendum to
      lease effective April 7, 2005</FONT></DIV></TD></TR></TABLE></DIV>
<DIV>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">7</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"
align=left>&nbsp;</DIV>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%">
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.10</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
      of Warrant dated April 8, 2005 issued by microHelix, Inc. to its financial
      advisor and its affiliates</FONT></DIV></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">&nbsp;</TD>
    <TD vAlign=top align=left width="89%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top align=left width="6%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14.1</FONT><FONT
      id=TAB2 style="COLOR: black; LETTER-SPACING: 27pt">&nbsp;</FONT></DIV></TD>
    <TD vAlign=top align=left width="89%">
      <DIV
      style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
      align=left><FONT
      style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">microHelix
      Policy on Business Ethics for Directors, Officers and Employees adopted
      April 6, 2005</FONT></DIV></TD></TR></TABLE></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV></DIV>
<DIV>&nbsp;</DIV></DIV></DIV></DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN style="PAGE-BREAK-AFTER: always">
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">8</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></FONT></DIV><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=center>&nbsp;</DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</FONT></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center bgColor=#ffffff
border=0>
  <TR vAlign=top bgColor=#ffffff>
    <TD width="50%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD width="1%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD width="49%"><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top bgColor=#ffffff>
    <TD><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD colSpan=2><FONT face="Times New Roman"
size=2>(Registrant)</FONT></TD></TR>
  <TR vAlign=top bgColor=#ffffff>
    <TD>&nbsp;</TD>
    <TD colSpan=2><FONT size=2>microHelix, Inc.</FONT>&nbsp;</TD></TR>
  <TR vAlign=top bgColor=#ffffff>
    <TD><FONT face="Times New Roman" size=2>&nbsp;<BR>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman" size=2>&nbsp;<BR>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman" size=2>&nbsp;<BR>&nbsp;</FONT></TD></TR>
  <TR vAlign=top bgColor=#ffffff>
    <TD><FONT face="Times New Roman" size=2>Date:&nbsp;April 13,
2005</FONT></TD>
    <TD><FONT face="Times New Roman" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman" size=2>/s/&nbsp;Tyram H.
  Pettit</FONT></TD></TR>
  <TR vAlign=top bgColor=#ffffff>
    <TD colSpan=2><FONT face="Times New Roman" size=1>&nbsp;</FONT></TD>
    <TD align=left>
      <HR align=left width="80%" color=#000000 noShade SIZE=2>
      <FONT size=2>Tyram H. Pettit</FONT></TD></TR>
  <TR vAlign=top bgColor=#ffffff>
    <TD colSpan=2><FONT face="Times New Roman" size=2>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman" size=2>President and Chief Executive
      Officer</FONT></TD></TR></TABLE></DIV>
<DIV
style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"
align=left><BR>&nbsp;</DIV>
<DIV id=PGBRK style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<DIV id=FTR>
<DIV id=GLFTR style="WIDTH: 100%" align=left><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV>
<DIV id=PN>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center"><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt" face="Times New Roman">9</FONT></DIV>
<DIV style="WIDTH: 100%; TEXT-ALIGN: center">
<HR color=#000000 noShade SIZE=2>
</DIV></DIV>
<DIV id=HDR>
<DIV id=GLHDR style="WIDTH: 100%" align=right><FONT
style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"></FONT></DIV></DIV></DIV>
<DIV></DIV></DIV></BODY></HTML>
{"company-data": {"conformed-name": "MICROHELIX INC", "cik": "0001142406", "assigned-sic": "3841", "irs-number": "911758621", "state-of-incorporation": "OR"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16781", "film-number": "05750279"}, "business-address": {"street1": "16125 SW 72ND AVE.", "city": "PORTLAND", "state": "OR", "zip": "97224", "phone": "5039681600"}}
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): April 8, 2005
MICROHELIX,
INC.
(Exact
name of Registrant as specified in its charter)
Oregon
001-16781
91-1758621
(State
      or other jurisdiction
(Commission
      File No.)
(IRS
      Employer
of
      incorporation)
Identification
      No.)
16125
      SW 72
nd
Avenue, Portland, Oregon
97224
(Address
      of principal executive offices)
(Zip
      Code)
Registrant's
telephone number, including area code: 503-968-1600
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
1.01. Entry into a Material Definitive Agreement.
(a)
microHelix,
      Inc. ("microHelix") entered into a Merger Agreement on April 8, 2005 and
      acquired 100% of the outstanding stock of Moore Electronics, Inc., an
      Oregon corporation ("MEI"), from two shareholders (the "Merger"). The
      purchase price for the stock of MEI was $3.0 million, which consisted of
      $1.5 million in cash, $1.25 million in a promissory note (the "Promissory
      Note") and $0.25 million in shares of microHelix Series B Preferred Stock,
      no par value ("Series B Preferred Stock"). microHelix also refinanced $0.4
      million of bank debt owed by MEI. The Promissory Note bears interest at
      10% per annum, with interest only payable for the first three months, and
      then principal and interest amortized in monthly payments over the next 33
      months. The Promissory Note may be prepaid at any time without penalty.
(b)
microHelix
      and MEI entered into a Security Agreement on April 8, 2005 under which
      they granted security interests in substantially all of their assets as
      security for payment of the Promissory
Note.
(c)
microHelix
      entered into Series B Preferred Stock Purchase Agreements on April 8, 2005
      with purchasers of 2.0 million shares of Series B Preferred Stock at a
      purchase price of $1.00 per share.
(d)
microHelix
      entered into a Registration Rights Agreement on April 8, 2005 with
      purchasers of its Series B Preferred Stock under which they have one
      demand registration right and piggy-back registration
    rights.
(e)
microHelix
      and MEI entered into an Amended and Restated Loan and Security Agreement
      with BFI Business Finance dated as of April 5, 2005 that became effective
      on April 8, 2005 (the "Loan Agreement") under which microHelix and MEI can
      borrow up to $1.5 million, subject to advance rates on accounts receivable
      and inventories. The Loan Agreement amends and restates in its entirety
      the existing loan and security agreement dated October 7, 2004 between
      microHelix and BFI Business Finance. The Loan Agreement is scheduled to
      expire on April 8, 2006. microHelix and MEI have granted security
      interests in the Loan Agreement to BFI Business Finance covering
      substantially all of their respective
assets.
Borrowings
under the Loan Agreement will be used to refinance existing bank debt owed by
microHelix and MEI, to pay a portion of the purchase price of the MEI stock
acquired by microHelix in the Merger and for general corporate purposes.
Borrowings under the Loan Agreement will bear interest at the "deemed prime
rate" plus 5%. The "deemed prime rate" equals the greater of the prime rate as
published in The Wall Street Journal or 5.25%. The Loan Agreement contains
customary affirmative and negative covenants and events of default for a secured
financing arrangement, including, among other things, limitations on
consolidations, mergers and sales of assets.
(f)
microHelix
      entered into a Stock Pledge Agreement on April 5, 2005 that became
      effective on April 8, 2005 under which it pledged all of the stock of MEI
      as collateral to BFI Business Finance with respect to obligations owed
      under the Loan Agreement.
(g)
microHelix
      and MEI entered into an Employment Agreement on April 8, 2005 under which
      microHelix and MEI will employ Marti D. Lundy as a Vice President of each
      corporation through March 31, 2008 for base compensation, payable by MEI,
      of $150,000 per year plus benefits.
(h)
microHelix
      entered into an oral arrangement on April 8, 2005 under which it agreed to
      compensate Tyram H. Pettit as its President and Chief Executive Officer
      for base compensation of $120,000 per year plus
  benefits.
2
(i)
microHelix
      on April 8, 2005 granted the following directors and named executive
      officer shares of its common stock, no par value ("Common Stock"), in
      recognition of service to microHelix and in recognition of the recipients'
      extraordinary contributions with respect to the acquisition of
      MEI:
Tyram
      H. Pettit
Director,
      President and
Chief
      Executive Officer
-
48,000
      shares
James
      M. Williams
Director
-
10,000
      shares
John
      L. Crary
Director
-
10,000
      shares
Terrence
      A. Rixford
Director
-
25,000
      shares
microHelix
has discontinued its policy of granting options for 3,334 shares of its Common
Stock to each of its directors following each annual meeting of shareholders.
The grants of Common Stock were made pursuant to the terms of microHelix's 2001
Stock Incentive Plan and 2002 Nonqualified Stock Option Plan. The foregoing
grants of Common Stock are unrestricted and fully vested.
(j)
microHelix
      on April 8, 2005 granted cash bonuses to the following directors and named
      executive officer to recognize their extraordinary efforts in connection
      with their individual contributions with respect to the acquisition of
      MEI:
Tyram
      H. Pettit
Director,
      President and
Chief
      Executive Officer
-
$25,000
Terrence
      A. Rixford
Director
-
$15,000
(k)
MEI
      on April 7, 2005 entered into a Third Addendum to Lease with respect to
      its leased facility in Tualatin, Oregon. The Third Addendum to Lease
      extended the lease on MEI's 33,000 square foot facility through August 14,
      2008.
Item
1.02. Termination of a Material Definitive Agreement.
Effective
April 8, 2005 microHelix and BFI Business Finance amended and restated in its
entirety the loan and security agreement dated October 7, 2004 between them. See
paragraph (e) of Item 1.01 of this Form 8-K.
Item
2.01. Completion of Acquisition or Disposition of Assets.
microHelix
entered into a Merger Agreement on April 8, 2005 and acquired 100% of the
outstanding stock of MEI from two shareholders of MEI. MEI, headquartered in
Tualatin, Oregon, is a manufacturer of custom and complex cable assemblies,
sub-assemblies, wire harnesses and electro-mechanical assemblies that serves
major medical equipment manufacturers and commercial equipment manufacturers.
The
acquisition was accomplished by the merger of a subsidiary of microHelix with
and into MEI, with MEI being the surviving corporation and a wholly-owned
subsidiary of microHelix.
MEI
occupies a leased 33,000 square foot facility and employees 130 people. For the
year ended
December 31, 2004 MEI recorded unaudited sales of approximately
$11.1 million and operating income of approximately $75,000.
3
The
purchase price for the stock of MEI was $3.0 million, which consisted of $1.5
million in cash, $1.25 million in a promissory note and $0.25 million in shares
of microHelix Series B Preferred Stock. microHelix also refinanced $0.4 million
of bank debt owed by MEI. Funds for the acquisition were obtained from the
private placement of microHelix Series B Preferred Stock and from microHelix's
revolving line of credit under the Loan Agreement.
See Item
1.01 of this Form 8-K for additional information regarding the acquisition of
MEI.
Item
2.03. Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant.
(a)
microHelix
      and MEI entered into an Amended and Restated Loan and Security Agreement
      with BFI Business Finance dated as of April 5, 2005 that became effective
      on April 8, 2005 (the "Loan Agreement") under which microHelix and MEI can
      borrow up to $1.5 million, subject to advance rates on accounts receivable
      and inventories. The Loan Agreement amends and restates in its entirety
      the existing loan and security agreement dated October 7, 2004 between
      microHelix and BFI Business Finance. The Loan Agreement is scheduled to
      expire on April 8, 2006. microHelix and MEI have granted security
      interests in the Loan Agreement to BFI Business Finance covering
      substantially all of their respective assets.
Borrowings
      under the Loan Agreement will be used to refinance existing bank debt owed
      by microHelix and MEI, to pay a portion of the purchase price of the MEI
      stock acquired by microHelix in the Merger and for general corporate
      purposes. Borrowings under the Loan Agreement will bear interest at
      variable rates equal to the "deemed prime rate" plus 5%. The "deemed prime
      rate" equals the greater of the prime rate as published in The Wall Street
      Journal or 5.25%. The Loan Agreement contains customary affirmative and
      negative covenants and events of default for a secured financing
      arrangement, including, among other things, limitations on consolidations,
      mergers and sales of assets.
microHelix
      entered into a Stock Pledge Agreement on April 5, 2005 that became
      effective on April 8, 2005 under which it pledged all of the stock of MEI
      as collateral to BFI Business Finance with respect to obligations owed
      under the Loan Agreement.
(b)
microHelix
      on April 8, 2005 issued a promissory note (the "Promissory Note") to Marti
      D. Lundy in the original principal amount of $1.25 million. The Promissory
      Note bears interest at 10% per annum, with interest only payable for the
      first three months, and then principal and interest amortized in monthly
      payments over the next 33 months. The Promissory Note may be prepaid at
      any time without penalty. Ms. Lundy is an officer and director of MEI, is
      an officer of microHelix and will become a director of microHelix
      effective May 8, 2005.
(c)
microHelix
      on April 8, 2005 sold 2,000,000 shares of its Series B Preferred Stock for
      $1.00 per share in a private placement and issued 250,000 shares of its
      Series B Preferred Stock as part of the purchase price for MEI. Each share
      of Series B Preferred Stock is eligible for a cumulative dividend of $0.15
      per share (as adjusted for stock splits, stock dividends, reclassification
      and the like) per annum, payable quarterly when, as and if declared by the
      Board of Directors of microHelix. The Board of Directors of microHelix may
      elect to pay such dividend in cash or in shares of microHelix Common
      Stock. Each share of Series B Preferred Stock is convertible into four
      shares of microHelix Common Stock. microHelix has the option after April
      8, 2006 to redeem outstanding shares of Series B Preferred Stock for $1.50
      per share (as adjusted for stock splits, stock dividends, reclassification
      and the like).
4
Except
      as expressly provided by the Amended and Restated Articles of
      Incorporation, as amended, of microHelix (the "Articles") or as provided
      by law, the holders of Series B Preferred Stock have the same voting
      rights as the holders of Common Stock and are entitled to notice of any
      shareholders meeting in accordance with the Bylaws of microHelix, and the
      holders of Common Stock and the Series B Preferred Stock vote together as
      a single class on all matters. Each holder of Series B Preferred Stock is
      entitled to the number of votes equal to the number of shares of Common
      Stock into which such shares of Series B Preferred Stock could at the time
      of such vote be converted.
As
      of the date of the initial filing of this Form 8-K, there are 2,082,746
      shares of Common Stock outstanding and entitled to vote. As of the date of
      the initial filing of this Form 8-K, holders of Series B Preferred Stock
      have the right to 9,000,000 votes on an as-converted basis.
Item
3.02. Unregistered Sale of Equity Securities.
(a)
microHelix
      on April 8, 2005 sold 2,000,000 shares of Series B Preferred Stock. The
      total offering price for the Series B Preferred Stock was $1.00 per share
      for total gross cash proceeds of $2.0 million. microHelix on April 8, 2005
      also issued 250,000 shares of Series B Preferred Stock to a selling
      shareholder as partial consideration in the Merger. Shares of Series B
      Preferred Stock were issued in reliance on Regulation D promulgated under
      the Securities Act of 1933, as amended (the "Securities Act") and
      microHelix obtained representations from the investors as to their status
      as "accredited investors" as that term is defined in Regulation
      D.
Each
      share of Series B Preferred Stock is convertible into four shares of
      Common Stock. microHelix can redeem the shares of Series B Preferred Stock
      at any time after April 8, 2006 for $1.50 per share (as adjusted for stock
      splits, stock dividends, reclassification and the like). microHelix
      entered into a Registration Rights Agreement dated as of April 8, 2005
      with the purchasers of the Series B Preferred Stock under which they have
      one demand registration right and piggy-back registration
      rights.
(b)
microHelix
      issued warrants on April 8, 2005 to its financial advisor and its
      affiliates to purchase a total of 478,000 shares of Common Stock. Such
      warrants can be exercised through April 7, 2015 for $0.25 per share
      (subject to adjustment for stock splits, stock dividends, reclassification
      and the like). These warrants were issued in reliance on Regulation D
      promulgated under the Securities Act to "accredited investors" as that
      term is defined in Regulation D.
(c)
microHelix
      on April 8, 2005 granted a total of 123,000 shares of Common Stock to six
      of its employees and directors. The grants were unrestricted and were made
      for services previously rendered. The shares were issued under Section
      4(2) of the Securities Act.
Item
3.03. Material Modification to Rights of Security Holders.
microHelix
amended its Amended and Restated Articles of Incorporation, as amended, on April
8, 2005 by filing a Certificate of Designation with the Oregon Secretary of
State designating 2,250,000 shares of its Preferred Stock as Series B Preferred
Stock. All 2,250,000 shares of Series B Preferred Stock were issued on April 8,
2005. The rights of holders of the Common Stock of microHelix may be materially
limited by the issuance of Series B Preferred Stock in that holders of Series B
Preferred Stock have superior liquidation preferences over the holders of Common
Stock in the event of any liquidation, dissolution or winding up of microHelix,
either voluntary or involuntary. In any such event, the assets of microHelix
would be distributed in the following order:
5
·
First,
      to
the holders of the Series B Preferred Stock until they received an amount
      equal to $2.00 per share (as adjusted for stock splits, stock dividends,
      reclassification and the like) for each share of Series B Preferred Stock
      then held by them, plus cumulative unpaid dividends from the original
      issuance date of such share of Series B Preferred Stock.
·
Second,
      to the holders of Common Stock until they receive an amount equal to $0.25
      per share (as adjusted for stock splits, stock dividends, reclassification
      and the like) for each share of Common Stock then held by them, plus any
      cumulative unpaid dividends.
·
Third,
      any remaining assets of microHelix would be distributed pro rata to the
      holders of Common Stock and to the holders of Series B Preferred Stock
      based on the number of shares of Common Stock then held by each holder
      (assuming conversion of all Series B Preferred Stock into Common Stock at
      the then effective conversion rate for the Series B Preferred Stock).
The
issuance of Series B Preferred Stock may also materially affect the rights of
holders of Common Stock with respect to voting on matters brought before the
shareholders of microHelix. See Item 5.01 of this Form 8-K.
Item
5.01. Changes in Control of Registrant.
Immediately
prior to the issuance of Series B Preferred Stock as described in Item 3.02 of
this Form 8-K, microHelix had outstanding 2,082,746 shares of its Common Stock
that were entitled to one vote per share, and had outstanding no shares of
preferred stock. microHelix on April 8, 2005 issued 2,250,000 shares of its
Series B Preferred Stock. Each share of Series B Preferred Stock is convertible
into four shares of microHelix Common Stock. Each holder of Series B Preferred
Stock is entitled to the number of votes equal to the number of shares of Common
Stock into which shares of Series B Preferred Stock could be converted. As of
the date of the initial filing of this Form 8-K, the holders of Series B
Preferred Stock have the right to 9,000,000 votes, which represents
approximately 81% of the votes eligible to be cast, and therefore have the
ability to control microHelix.
Item
5.02. Election of Director; Appointment of Principal
Officer.
Marti D.
Lundy was elected by the Board of Directors of microHelix to serve, beginning
effective May 8, 2005, as a director of microHelix until the next annual meeting
of the shareholders. Effective April 8, 2005 Ms. Lundy was appointed a Vice
President of microHelix. Ms. Lundy is also a Vice President and director of MEI.
Ms. Lundy was formerly a shareholder in MEI and has served since 1978 as the
Vice President of MEI.
Ms. Lundy
received aggregate consideration of $2.0 million from microHelix in connection
with the Merger, consisting of $0.5 million in cash, a promissory note for $1.25
million and 250,000 shares of microHelix's Series B Preferred Stock (with a
deemed value of $250,000).
Item
5.03. Amendment to Articles of Incorporation or Bylaws; Change in Fiscal
Year.
microHelix
amended its Amended and Restated Articles of Incorporation, as amended, on April
8, 2005 by filing a Certificate of Designation designating 2,250,000 shares of
its Preferred Stock as Series B Preferred Stock.
6
Item
8.01. Other Events.
microHelix
on April 6, 2005 adopted a
policy on
business ethics for its directors, officers and employees
.
Item
9.01. Financial Statements and Exhibits.
(a)
Financial
      Statements of Business Acquired
.
      microHelix will file the financial statements required by this item in
      regards to the matters in Item 2.01 of this Form 8-K not later than 71
      calendar days after the initial report on Form 8-K was required to be
      filed.
(b)
Pro
      Forma Financial Information.
microHelix will file the pro forma financial information statements
      required by this item in regards to the matters in Item 2.01 of this Form
      8-K not later than 71 calendar days after the initial report on Form 8-K
      was required to be filed.
(c)
Exhibits.
The following documents are filed as exhibits to this Form
      8-K:
3.1
Articles
      of Amendment effective April 8, 2005 to the Amended and Restated Articles
      of Incorporation of microHelix, Inc. relating to Certificate of
      Designation of Series B Preferred Stock
10.1
Merger
      Agreement dated April 8, 2005 among microHelix, Inc., microHelix
      Acquisition Corp., Moore Electronics, Inc., Lawrence T. Moore and Marti D.
      Lundy
10.2
Promissory
      Note dated April 8, 2005 made by microHelix, Inc. in favor of Marti D.
      Lundy
10.3
Security
      Agreement dated April 8, 2005 among microHelix, Inc., Moore Electronics,
      Inc. and Marti D. Lundy
10.4
Form
      of Series B Preferred Stock Purchase Agreement dated April 8, 2005 between
      microHelix, Inc. and purchasers of Series B Preferred Stock of microHelix,
      Inc.
10.5
Form
      of Registration Rights Agreement dated April 8, 2005 between microHelix,
      Inc. and holders of Series B Preferred Stock
10.6
Amended
      and Restated Loan and Security Agreement dated as of April 5, 2005 among
      microHelix, Inc., Moore Electronics, Inc. and BFI Business
      Finance
10.7
Stock
      Pledge Agreement dated as of April 5, 2005 between microHelix, Inc. and
      BFI Business Finance
10.8
Employment
      Agreement dated April 8, 2005 between Marti D. Lundy and Moore
      Electronics, Inc.
10.9
Lease
      dated August 15, 1999 between Sylvia B. Giustina and Moore Electronics,
      Inc., as modified and amended by a Memorandum of Understanding effective
      January 1, 2001, a First Addendum to Lease effective August 15, 2002, a
      Second Addendum to Lease effective August 15, 2002 and a Third Addendum to
      lease effective April 7, 2005
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10.10
Form
      of Warrant dated April 8, 2005 issued by microHelix, Inc. to its financial
      advisor and its affiliates
14.1
microHelix
      Policy on Business Ethics for Directors, Officers and Employees adopted
      April 6, 2005
8
SIGNATURES
Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
(Registrant)
microHelix, Inc.
Date: April 13,
2005
/s/ Tyram H.
  Pettit
Tyram H. Pettit
President and Chief Executive
      Officer
9