OVERLAND PARK, KS--(Marketwire - March 31, 2011) - Digital Ally, Inc. (
NASDAQ:
DGLY), which
develops, manufactures and markets advanced video surveillance products for
law enforcement, homeland security and commercial security applications,
today announced its operating results for the fourth quarter and year ended
December 31, 2010. An investor conference call is scheduled for 11:15 a.m.
EDT today, March 31, 2011 (see details below).
"2010 was a disappointing year for Digital Ally and its shareholders in
terms of the Company's operating performance," noted Stanton E. Ross, the
Company's Chief Executive Officer. "In addition, we recorded a $4.3
million non-cash charge during the fourth quarter to reflect an increase in
our valuation allowance on deferred tax assets. This charge, which was
necessary due to our recent operating losses, significantly increased our
net loss for 2010.
"However, we have implemented a number of strategic and product development
initiatives that enhance our optimism regarding the outlook for 2011 and
future years. In particular, we have downsized the Company's operating
cost structure in a manner that should allow Digital Ally to be profitable
at a lower level of domestic sales and without having to rely upon
international revenues. These steps were taken to address the facts that
(1) tax revenue shortfalls and budgeting constraints at the state, county
and municipal government levels have clouded the outlook for near-term
equipment spending by domestic law enforcement agencies, and (2) the timing
of international orders has proven to be quite unpredictable."
"During the latter part of 2010 and early in the current year, we developed
and implemented a cost-reduction program that extends throughout the
Company," continued Ross. "When these cost savings are combined with the
downsizing of our manufacturing infrastructure and the planned outsourcing
of a large portion of our production requirements, we believe Digital Ally,
Inc. can be profitable and cash flow positive at revenue levels
approximating $24 million annually -- or slightly below the revenue levels
achieved last year. These actions should result in a highly efficient
Company that can respond more quickly and effectively to changes in the
marketplace. Looking forward, management will also be able to focus more
directly upon marketing strategies aimed at realizing the revenue potential
of new products that have been developed to expand our share of the law
enforcement market and addressing opportunities in markets outside of law
enforcement.
"As a low-cost provider of a growing line of innovative digital
surveillance products, we believe Digital Ally will be well-positioned for
a recovery in revenue in 2011, despite the budget uncertainties currently
facing state and local governments. New video products for law enforcement
agencies, including the FirstVU and Thermal Ally, will complement and build
upon the success of our existing in-car video systems. Further, the Laser
Ally LIDAR system expands our sales potential by targeting the speed
enforcement needs of new and existing customers. We are taking our first
step outside of law enforcement with this year's introduction of the
DVM-250 Video Event Recorder, which has been well received by vehicle fleet
operators at trade shows and field demonstrations. We believe this could
be one of the most successful new product launches in our history.
"In conclusion, although state and local government agencies at all levels
are struggling financially, we believe low-cost providers of digital
technologies that enhance the productivity and safety records of law
enforcement agencies and vehicle fleet operators can prosper by delivering
greater value and efficiency to their customers. We are confident that we
can take advantage of such opportunities and expect 2011 to be a turnaround
year for our Company," concluded Ross.
For the twelve months ended December 31, 2010, the Company's revenue
declined 4.4% to approximately $25.2 million, compared with revenue of
approximately $26.4 million in the year ended December 31, 2009. The
decrease in revenues was due to (1) a 55% reduction in international orders
and (2) delays or reductions in the size of orders from domestic law
enforcement agencies in response to a challenging economic environment
and/or budget cuts due to lower tax revenues. Domestic sales increased
4.6% in 2010 to approximately $23.4 million, versus approximately $22.4
million in 2009. The Company shipped 25 individual orders in excess of
$100,000 each in 2010, compared with 24 orders in excess of $100,000 each
in the previous year.
Gross profits declined 9% to $12,127,249 in 2010, compared with $13,433,044
in the year ended December 31, 2009. Gross profit margins, which decreased
to 48.1% of revenue, versus 50.9% in the previous year, were negatively
impacted by costs associated with providing new and existing customers with
new wireless transfer module ("WTM") upgrades that were significantly more
expensive than the Company's previous solution, along with the sale of long
lead-time components to contract manufacturers at prices that resulted in
breakeven or losses on such items. The Company's goal is to improve gross
profit margins to 60% in 2011 and in future years through reductions in
conversion costs (engineering changes and rework), manufacturing
efficiencies related to new products, the outsourcing of certain
subcomponents to lower-cost contract manufacturers, quantity purchasing
discounts and more effective purchasing practices.
Total Selling, General and Administrative ("SG&A") expenses increased 5% to
$15,921,062 (63.2% of revenue) in 2010, versus $15,222,711 (57.7% of
revenue) in 2009. Research and Development ("R&D") expenses decreased 5%
to $3,437,959 (vs. $3,603,696), primarily due to higher costs early in 2009
associated with completion of certain features of the DVM-750 product. R&D
expenses during 2010 were focused upon completion of the Laser Ally,
Thermal Ally and DVM-250 Event Recorder projects. Sales commission expense
declined 27% to $2,120,718 last year, compared with $2,893,555 in the
previous year, reflecting the higher percentage of commissions paid on a
large international order in 2009 and the success of initiatives to improve
sales in certain targeted markets. Promotional and advertising expenses
increased during 2010 to $732,336 (vs. $518,138) in support of the launch
of the FirstVU, Laser Ally, Thermal Ally and other new products, along with
the dedication of greater promotional and marketing resources to
international sales activities and increased participation in trade shows
in order to generate new sales leads and provide product demonstrations.
Stock-based compensation increased to $1,755,720 (vs. $1,399,879) due to
restricted stock grants with shorter vesting periods that were made to
officers and directors in January 2010. Charges related to the purchase
and cancellation of employee stock options totaled $358,104 in 2009,
whereas no such charges were incurred in the most recent year. Also during
2009, the Company resolved a dispute with a vendor that resulted in an
aggregate benefit of $278,173. Professional fees and expenses were
relatively unchanged at $1,132,513 in 2010, versus $1,118,771 in the
previous year. Executive, sales and administrative staff payroll expenses
increased 29% to $3,881,263 in the year ended December 31, 2010, versus
$3,016,035 in the twelve months ended December 31, 2009, primarily due to
higher payroll costs related to additional sales and marketing personnel.
Other SG&A expenses increased 10% to $2,860,553 in 2010, versus $2,592,706
in 2009, primarily due to higher insurance costs, along with
facility-related and travel expenses, partially offset by cost containment
measures implemented during 2010.
The Company reported a 2010 operating loss of ($3,793,813), compared with
an operating loss of ($1,789,667) in the year ended December 31, 2009.
A pretax loss of ($3,794,525) was recorded in the year ended December 31,
2010, versus a pretax loss of ($1,754,317) in the year ended December 31,
2009. After an income tax provision of $2,750,000, including a non-cash
charge of $4.3 million to reflect an increase in the valuation reserve on
deferred tax assets, the Company reported a net loss of ($6,544,525) in
2010. This compared with a net loss of ($1,114,317), including an income
tax benefit of $640,000, in the year ended December 31, 2009.
The Company reported a net loss of ($0.40) per share in 2010, compared with
a net loss of ($0.07) per share in 2009.
On a non-GAAP basis, the Company reported an adjusted net loss (before
income taxes, depreciation, amortization and stock-based compensation), a
non-GAAP financial measure, of ($1,239,435), or ($0.08) per share, in the
year ended December 31, 2010, versus adjusted net income of $918,522, or
$0.06 per diluted share, in the year ended December 31, 2009. (Non-GAAP
adjusted net income (loss) is described in greater detail in a table at the
end of this news release).
For the quarter ended December 31, 2010, the Company's revenue decreased
31% to approximately $6.4 million, compared with revenue of approximately
$9.2 million in the fourth quarter of 2009. The Company shipped a $3.3
million order in the fourth quarter of 2009 to the Turkish National Police,
whereas no large international orders were shipped in the fourth quarter of
2010.
Gross profits declined 44% to $2,629,094, versus $4,727,911 in the three
months ended December 31. 2009. Gross profit margins approximated 41.4% of
revenue in the fourth quarter of 2010, versus 51.1% in the year-earlier
period, due to the same factors that negatively impacted such margins for
the full year.
Total SG&A expenses declined 6% to $4,104,834 (64.6% of revenue) in the
three months ended December 31, 2010, versus $4,386,744 (47.4% of sales) in
the final quarter of 2009. Research and development expenses increased 5%
to $842,158, versus $800,658 in the three months ended December 31, 2009.
Sales, advertising and promotional expense declined 50% to $744,846 in the
fourth quarter of 2010, compared with $1,489,159 in the three months ended
December 31, 2009. Stock-based compensation increased from $345,876 in the
fourth quarter of 2009 to $385,374 in the final quarter of 2010. General
and administrative expenses increased 22% to $2,132,456 in the three months
ended December 31, 2010, versus $1,751,051 in the three months ended
December 31, 2009.
The Company reported an operating loss of ($1,475,740) in the quarter ended
December 31, 2010, compared with operating income of $341,167 in the
prior-year period.
A pretax loss of ($1,490,733) was recorded in the fourth quarter of 2010,
versus pretax income of $349,428 in the year-earlier quarter. After an
income tax provision of $3,498,000 that was related to the abovementioned
increase in the valuation reserve on deferred tax assets, the Company
reported a net loss of ($4,988,733) in the fourth quarter of 2010. This
compared with net income of $269,428, including an income tax provision of
$80,000, in the three months ended December 31, 2009.
The Company reported a net loss of ($0.31) per share in the three months
ended December 31, 2010, compared with net income of $0.02 per diluted
share in the three months ended December 31, 2009.
On a non-GAAP basis, the Company reported an adjusted net loss (before
income taxes, depreciation, amortization and stock-based compensation), a
non-GAAP financial measure, of ($906,262), or ($0.06) per share, in the
three months ended December 31, 2010, versus adjusted net income of
$939,325, or $0.06 per diluted share, in the quarter ended December 31,
2009. (Non-GAAP adjusted net income (loss) is described in greater detail
in a table at the end of this news release).
The Company had $623,475 of cash and cash equivalent balances and net
positive working capital approximating $10.8 million, including accounts
receivable balances of $4,779,553, as of December 31, 2010. Inventory
represented $10,088,285 of net working capital and finished goods
represented $6,460,924 of total inventory at December 31, 2010. The
Company expects that finished goods will be converted to cash quickly when
customer orders are received and shipments occur in 2011. The Company is
actively managing the overall level of inventory and believes that such
levels will be reduced during 2011. This should provide additional cash
flow to support operations during 2011.
Borrowings outstanding under the Company's current line of credit
approximate $1.5 million, which, when considering outstanding letters of
credit, leaves limited or no further available borrowings as of December
31, 2010. The current credit facility matures in June 2011, and the
Company believes that it is unlikely that the bank will be willing to
extend or renew the facility under terms that are mutually agreeable. The
Company also believes that it is unlikely that it will be able to retire
the existing borrowings at maturity in June 2011 without having a
replacement credit facility in place unless its efforts to reduce inventory
and increase cash flow are successful. The Company is in discussions with
various financial institutions and third parties with the goal of obtaining
a replacement credit facility. It will be difficult to replace the
existing line of credit facility given the Company's recent operating
losses and the current banking environment, and any new credit facility may
be on terms not favorable to the Company.
Non-GAAP Financial Measures
Digital Ally, Inc. has provided financial information in this release that
has not been prepared in accordance with GAAP. This information includes
non-GAAP adjusted net income (loss). Digital Ally uses such non-GAAP
financial measures internally in analyzing its financial results and
believes they are useful to investors, as a supplement to GAAP measures, in
evaluating Digital Ally's ongoing operational performance. Digital Ally
believes that the use of these non-GAAP financial measures provides an
additional tool for investors to evaluate ongoing operating results and
trends and in comparing its financial measures with other companies in
Digital Ally's industry, many of which present similar non-GAAP financial
measures to investors. As noted, the non-GAAP financial measures discussed
above exclude certain non-cash expenses/income including: (1) income tax
expense/benefit, (2) depreciation and amortization expenses and (3)
share-based compensation expense pursuant to SFAS 123(R).
Non-GAAP financial measures should not be considered in isolation from, or
as a substitute for, financial information prepared in accordance with
GAAP. Investors are encouraged to review the reconciliation of these
non-GAAP measures to their most directly comparable GAAP financial measure
as detailed above. As previously mentioned, a reconciliation of GAAP to the
non-GAAP financial measures has been provided in the tables included as
part of this press release.
Investor Conference Call
The Company will host an investor conference call at 11:15 a.m. Eastern
Time (EDT) today, March 31, 2011, to discuss its fourth quarter and full
year 2010 operating results, along with other topics of interest.
Shareholders and other interested parties may participate in the conference
call by dialing 877-317-6789 (international/local participants dial
412-317-6789) and asking to be connected to the "Digital Ally, Inc.
Conference Call" a few minutes before 11:15 a.m. EDT on March 31, 2010.
The call will also be broadcast live on the Internet at
www.videonewswire.com/event.asp?id=77684. A replay of the conference call
will be available one hour after the completion of the conference call
until 9:00 a.m. on Wednesday, June 1, 2011 by dialing 877-344-7529
(international/local participants dial 412-317-0088) and entering the
conference ID 449427.
The call will also be archived on the Internet through June 1, 2011, at
www.videonewswire.com/event.asp?id=77684 and on the Company's website at
www.digitalallyinc.com.
About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced technology
products for law enforcement, homeland security and commercial security
applications. The Company's primary focus is digital video imaging and
storage. For additional information, visit
www.digitalallyinc.com
The Company is headquartered in Overland Park, Kansas, and its shares are
traded on The Nasdaq Capital Market under the symbol "DGLY."
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Act of 1934. These forward-looking statements are based largely
on the expectations or forecasts of future events, can be affected by
inaccurate assumptions, and are subject to various business risks and known
and unknown uncertainties, a number of which are beyond the control of
management. Therefore, actual results could differ materially from the
forward-looking statements contained in this press release. A wide variety
of factors that may cause actual results to differ from the forward-looking
statements include, but are not limited to, the following: whether the
Company will be able to increase revenues, regain profitability and
generate positive cash flow in 2011 in the current economic environment;
whether the Company will be able to replace its current credit facility
when it matures in June 2011 or repay borrowings under the facility through
cash flow; the risk that any new credit facility, if obtained, will include
terms and conditions not favorable to the Company; whether the federal
economic stimulus funding for law enforcement agencies will have a positive
impact on the Company's revenue; the Company's ability to deliver its new
product offerings as scheduled, including its ability to obtain the
required components and products on a timely basis, and have them perform
as planned or advertised; its ability to achieve improved production and
other efficiencies to improve its gross and operating margins; its ability
to expand its share of the in-car video market in the domestic and
international law enforcement communities; whether there will be a
commercial market, domestically and internationally, for one or more of its
new products, including the FirstVU, Thermal Ally, Laser Ally and DVM-250
Video Event Recorder; whether the initial interest in its new products will
translate into future sales; whether its international marketing
initiatives will result in a rebound in its revenues outside of the U.S.;
whether the Company will be able to adapt its technology to new and
different uses, including being able to introduce new products; competition
from larger, more established companies with far greater economic and human
resources; its ability to attract and retain customers and quality
employees; the effect of changing economic conditions; and changes in
government regulations, tax rates and similar matters. These cautionary
statements should not be construed as exhaustive or as any admission as to
the adequacy of the Company's disclosures. The Company cannot predict or
determine after the fact what factors would cause actual results to differ
materially from those indicated by the forward-looking statements or other
statements. The reader should consider statements that include the words
"believes," "expects," "anticipates," "intends," "estimates," "plans,"
"projects," "should," or other expressions that are predictions of or
indicate future events or trends, to be uncertain and forward-looking. The
Company does not undertake to publicly update or revise forward-looking
statements, whether as a result of new information, future events or
otherwise. Additional information respecting factors that could materially
affect the Company and its operations are contained in its annual report on
Form 10-K for the year ended December 31, 2010, as filed with the
Securities and Exchange Commission.
CONDENSED BALANCE SHEETS
DECEMBER 31, 2010 AND 2009
(unaudited)
December 31, December 31,
2010 2009
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 623,475 $ 183,150
Accounts receivable-trade, less allowance
for doubtful accounts of $110,000 - 2010
and $110,000 - 2009 4,779,553 8,398,353
Accounts receivable-other 345,711 476,049
Inventories 10,088,285 7,370,505
Prepaid expenses 341,584 224,923
Deferred taxes, net -- 1,695,000
------------ ------------
Total current assets 16,178,608 18,347,980
------------ ------------
Furniture, fixtures and equipment 3,352,372 3,010,977
Less accumulated depreciation and amortization 2,307,244 1,592,874
------------ ------------
1,045,128 1,418,103
------------ ------------
Deferred taxes, net -- 1,160,000
Intangible assets, net 293,577 336,182
Other assets 91,133 135,674
------------ ------------
Total assets $ 17,608,446 $ 21,397,939
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,157,033 $ 2,000,541
Line of credit 1,500,000 --
Accrued expenses 728,479 1,781,969
Income taxes payable 25,625 9,171
Customer deposits 2,642 39,924
------------ ------------
Total current liabilities 5,413,779 3,831,605
------------ ------------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 75,000,000
shares authorized; shares issued:
16,652,218 - 2010 and 16,169,739 - 2009 16,652 16,170
Additional paid in capital 21,649,567 20,007,430
Treasury stock, at cost (shares: 508,145 -
2010 and 248,610 - 2009) (2,157,226) (1,687,465)
Accumulated deficit (7,314,326) (769,801)
------------ ------------
Total stockholders' equity 12,194,667 17,566,334
------------ ------------
Total liabilities and stockholders'
equity $ 17,608,446 $ 21,397,939
============ ============
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE COMPANY'S ANNUAL REPORT
ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010 FILED WITH THE SEC)
DIGITAL ALLY, INC.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEARS
ENDED DECEMBER 31, 2010 AND 2009
(unaudited)
Three Months ended Years ended
December 31, December 31,
-------------------------- --------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
Product revenue $ 6,238,748 $ 9,048,241 $ 24,581,907 $ 25,318,294
Other revenue 119,219 196,949 629,098 1,047,959
------------ ------------ ------------ ------------
Total revenue 6,357,967 9,245,190 25,211,005 26,366,253
Cost of revenue 3,728,873 4,517,279 13,083,756 12,933,209
------------ ------------ ------------ ------------
Gross profit 2,629,094 4,727,911 12,127,249 13,433,044
------------ ------------ ------------ ------------
Selling, general
and administrative
expenses:
Research and
development
expense 842,158 800,658 3,437,959 3,603,696
Selling,
advertising and
promotional
expense 744,846 1,489,159 2,853,054 3,411,693
Stock-based
compensation
expense 385,374 345,876 1,755,720 1,399,879
Charges related
to purchase and
cancellation of
employee stock
options -- -- -- 358,104
Vendor
settlements and
credits -- -- -- (278,173)
General and
administrative
expense 2,132,456 1,751,051 7,874,329 6,727,512
------------ ------------ ------------ ------------
Total selling,
general and
administrative
expenses 4,104,834 4,386,744 15,921,062 15,222,711
------------ ------------ ------------ ------------
Operating income
(loss) (1,475,740) 341,167 (3,793,813) (1,789,667)
------------ ------------ ------------ ------------
Interest income 5,289 8,261 24,153 35,350
Interest expense (20,282) -- (24,865) --
------------ ------------ ------------ ------------
Income (loss)
before income tax
benefit
(provision) (1,490,733) 349,428 (3,794,525) (1,754,317)
Income tax benefit
(provision) (3,498,000) (80,000) (2,750,000) 640,000
------------ ------------ ------------ ------------
Net income (loss) $ (4,988,733) $ 269,428 $ (6,544,525) $ (1,114,317)
============ ============ ============ ============
Net income (loss)
per share
information:
Basic $ (0.31) $ 0.02 $ (0.40) $ (0.07)
Diluted $ (0.31) $ 0.02 $ (0.40) $ (0.07)
Weighted average
shares outstanding:
Basic 16,144,073 15,821,075 16,315,026 15,797,991
Diluted 16,144,073 16,572,850 16,315,026 15,797,991
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010 FILED WITH THE SEC)
DIGITAL ALLY, INC.
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED NET INCOME (LOSS)
FOR THE THREE MONTHS AND YEARS ENDED
DECEMBER 31, 2010 AND 2009
(unaudited)
Three Months Years Ended
Ended December 31, December 31,
--------------------------- --------------------------
2010 2009 2010 2009
------------ ------------- ------------ ------------
Net income (loss) $ (4,988,733) $ 269,428 $ (6,544,525) $ (1,114,317)
Non-GAAP
adjustments:
Income tax
provision
(benefit) 3,498,000 80,000 2,750,000 (640,000)
Stock-based
compensation 385,374 345,876 1,755,720 1,757,983
Depreciation and
amortization 199,097 244,021 799,370 914,856
------------ ------------- ------------ ------------
Total Non-GAAP
adjustments 4,082,471 669,897 5,305,090 2,032,839
------------ ------------- ------------ ------------
Non-GAAP adjusted
net income (loss) $ (906,262) $ 939,325 $ (1,239,435) $ 918,522
============ ============= ============ ============
Non-GAAP adjusted
net income (loss)
per share
information:
Basic $ (0.06) $ 0.06 $ (0.08) $ 0.06
Diluted $ (0.06) $ 0.06 $ (0.08) $ 0.06
Weighted average
shares
outstanding:
Basic 16,144,073 15,821,075 16,315,026 15,797,991
Diluted 16,144,073 16,572,850 16,315,026 15,797,991
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010 FILED WITH THE SEC)
DIGITAL ALLY, INC.
CONDENSED STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2010 AND 2009
(unaudited)
2010 2009
------------ ------------
Cash Flows From Operating Activities:
Net loss $ (6,544,525) $ (1,114,317)
Adjustments to reconcile net loss to net
cash flows used in operating activities:
Depreciation and amortization 799,370 914,856
Stock based compensation 1,755,720 1,757,983
Provision for inventory obsolescence 173,152 31,304
Provision for bad debts -- 34,066
Deferred tax provision (benefit) 2,855,000 (535,000)
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable - trade 3,618,800 (2,190,113)
Accounts receivable - other 130,338 (61,873)
Inventories (2,890,932) 958,152
Prepaid income taxes -- 85,943
Prepaid expenses (116,661) (7,007)
Other assets 44,541 13,392
Increase (decrease) in:
Accounts payable 1,156,492 (791,024)
Accrued expenses (1,136,891) 728,345
Income taxes payable 16,454 9,171
Customer deposits (37,282) (44,115)
------------ ------------
Net cash used in operating activities (176,424) (210,237)
------------ ------------
Cash Flows from Investing Activities:
Purchases of furniture, fixtures and
equipment (341,395) (539,772)
Additions to intangible assets (42,395) (31,075)
------------ ------------
Net cash used in investing activities (383,790) (570,847)
------------ ------------
Cash Flows from Financing Activities:
Net borrowings of line-of-credit 1,500,000 --
Proceeds from exercise of stock options and
warrants 95,300 261,399
Deficiency in tax benefits related to
stock-based compensation (125,000) (120,000)
Purchase of common shares for treasury (469,761) (63,112)
Purchase of employee stock options -- (320,000)
------------ ------------
Net cash provided by (used in) financing
activities 1,000,539 (241,713)
------------ ------------
Net increase (decrease) in cash and cash
equivalents 440,325 (1,022,797)
Cash and cash equivalents, beginning of period 183,150 1,205,947
------------ ------------
Cash and cash equivalents, end of period $ 623,475 $ 183,150
============ ============
Supplemental disclosures of cash flow
information:
Cash payments for interest $ 24,865 $ --
============ ============
Cash payments for income taxes $ 15,783 $ 21,811
============ ============
Supplemental disclosures of non-cash investing
and financing activities:
Restricted common stock grant $ 58,750 $ 58,750
============ ============
Common stock surrendered as consideration
for exercise of stock options $ 833,991 $ 321,743
============ ============
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010 FILED WITH THE SEC)
Contact Information: For Additional Information, Please Contact:
Stanton E. Ross
CEO
(913) 814-7774
or
RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893
info@rjfalkner.com