OVERLAND PARK, KS--(Marketwire - November 10, 2010) - 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 third quarter and first nine
months of 2010. An investor conference call is scheduled for 11:15 a.m.
EST tomorrow, November 11, 2010 (see details below).
"Depending upon one's perspective, 2010 can be viewed as a year of
frustration or a year of excitement regarding new product development and
strategic initiatives that should lead to higher sales and profitability in
2011 and future years," observed Stanton E. Ross, Chief Executive Officer
of Digital Ally, Inc. "We are disappointed that this year's financial
performance has not met our initial expectations, largely due to delays
involving international orders, and in particular a large order from a
South American country, that were expected to ship in 2010. It is our
policy to require funding prior to shipment of most international orders,
which we believe is prudent in the current economic environment. While
this year's international business experience has, to date, been a source
of frustration to our entire management team, we remain hopeful that we
will receive certain smaller international orders for shipment in the
fourth quarter. However, given the various factors involved, including
funding and political and social unrest in certain of the countries
involved, we do not have sufficient clarity to predict the timing of
receipt of international orders, payments or the impact of such orders on
our 2010 revenues.
"We increased our overhead expenses and inventory levels in 2010 (i) in
anticipation of a significant increase in our international business and
(ii) to develop and market new products, including our Laser Ally, FirstVU,
Thermal Ally and DVM-250. Without the higher level of international
revenues that we expected, we may not be able to generate a profit this
year. We do, however, expect to reduce our net loss in 2010 compared with
2009 levels. In this regard, and in light of our inability to accurately
forecast international revenue from a number of prospective foreign
customers, we are instituting a vigorous cost-cutting program, with the
goal of achieving positive cash flow solely on our domestic business in
2011.
"On a brighter note, we have been very pleased with the initial response of
large and medium-sized law enforcement agencies to our new digital
surveillance products that are being launched in the second half of the
current year and in 2011," continued Ross. "We recently participated in
the 117th International Association of Chiefs of Police (IACP) Conference in
Orlando, where our new products and product features were enthusiastically
received by attendees from throughout the United States and around the
world. When combined with continued growth in demand for the DVM systems
among law enforcement agencies and our launch of the new DVM-250 event
recorder for mass transit and other non-law-enforcement markets, 2011
should be a year of impressive sales growth for our Company."
For the three months ended September 30, 2010, the Company's revenue
increased 23% to approximately $7.0 million, compared with revenue of
approximately $5.7 million in the third quarter of 2009. The increase in
revenues was primarily due to the shipment of DVM-750 In-Car Digital Video
Systems to an expanding customer base, reflecting the appeal of this newer,
feature-rich product to larger law enforcement agencies. The Company
shipped nine individual orders in excess of $100,000 each in the three
months ended September 30, 2010, compared with eight orders in excess of
$100,000 each during the prior-year quarter. The increase in revenues
during the most recent quarter would have been more substantial had the
Company not experienced weakness in its international sales.
International revenue increased to $559,121 (8% of total revenues) in the
third quarter of 2010, compared with $270,491 (5% of total revenues) in the
third quarter of 2009. International orders are often larger in size than
typical domestic orders, and timing of the receipt and shipment of such
orders can have a significant impact upon the Company's sales and operating
results during individual quarters.
Gross profits declined approximately 1% to $3,284,645 in the third quarter
of 2010, versus $3,334,989 in the year-earlier quarter. Gross profit
margins decreased to 46.7% of revenue in the three months ended September
30, 2010, versus 58.3% in the third quarter of the previous year. Gross
margins 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 material to contract manufacturers at
prices that resulted in breakeven or losses on such material. Also, while
failure and rework rates have improved, they have not yet reached targeted
levels. The Company's goal is to improve gross profit margins
significantly in 2011 and beyond 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.
"The decline in gross profit margins during our third quarter relates
somewhat to changes in our sales mix, reflecting higher international sales
and a tendency for law enforcement agencies to source a greater portion of
their equipment needs from a smaller number of vendors," commented Tom
Heckman, the Company's Chief Financial Officer. "This industry trend
required us to purchase certain products, such as radar systems, from other
manufacturers, and package them with our in-car video systems and other
digital surveillance products for shipment to customers. Packaging
low-margin third-party products with our high-margin proprietary digital
products narrowed our gross profit margins."
"We were also pro-active in protecting our supply chain and supporting our
new outsourcing initiative through the purchase of significant quantities
of long lead time components in the third quarter," continued Heckman.
"Because we had experienced significant shortages of certain critical
components, management elected to procure such components in advance of
production requirements in order to ensure timely deliveries from our
contract manufacturers. While our third quarter gross margins were
negatively impacted when we resold the components to contract
manufacturers, the outsourcing initiative should improve future margins
beginning in the fourth quarter of 2010, with a more positive influence on
next year's margins. Our goal is to improve gross margins from 46.7% in
the quarter ended September 30, 2010, to at least 60% in the coming year."
Selling, General and Administrative ("SG&A") expenses increased
approximately 21% to $3,876,646 (55.2% of revenue) in the most recent
quarter, versus $3,212,553 (56.2% of revenue) in the three months ended
September 30, 2009. Research and Development ("R&D") expenses increased
29% to $900,210 (vs. $696,523), primarily reflecting efforts to upgrade the
Company's WTM, other engineering on current product offerings, and efforts
to complete the Laser Ally, FirstVU, Thermal Ally and DVM-250 event
recorder projects. Sales commission expense totaled $532,580 in the third
quarter of 2010, compared with $631,993 in the three months ended September
30, 2009, for a 16% decline that reflected the higher percentage of foreign
sales in the most recent quarter when compared with the prior-year period,
and the success of initiatives to improve sales in certain targeted
markets. Promotional and advertising expenses increased to $136,636 (vs.
$116,641), as marketing initiatives were pursued in support of the launch
of the FirstVU, Laser Ally, Thermal Ally and other new products. The
Company has also dedicated greater promotional and marketing resources to
international sales activities and increased its participation in trade
shows in order to generate new sales leads and provide product
demonstrations. Stock-based compensation increased modestly to $387,674
(vs. $348,704) due to restricted stock grants with shorter vesting periods
that were issued to officers and directors in January 2010. The Company
recognized a benefit of $278,173 during the third quarter of 2009 related
to the resolution of a dispute with a vendor, while no similar event
occurred during the most recent quarter. Professional fees and expenses
decreased slightly to $233,261 in the most recent quarter, from $237,958 a
year earlier. Executive, sales and administrative staff payroll expenses
increased 14% to $939,717 in the three months ended September 30, 2010,
versus $820,959 in the three months ended September 30, 2009, primarily due
to higher payroll costs related to additional sales and marketing
personnel, particularly in the area of technical customer and product
support. Other SG&A expenses increased to $765,369 in the third quarter of
2010, versus $637,948 in the third quarter of 2009, primarily due to higher
insurance costs and facility-related expenses, partially offset by cost
containment measures implemented earlier in 2010.
The Company reported an operating loss in the most recent quarter of
($592,001), compared with operating income of $122,436 in the third quarter
of 2009.
A pretax loss of ($591,961) was recorded in the quarter ended September 30,
2010, versus pretax income of $132,402 in the quarter ended September 30,
2009. After an income tax benefit of $153,000, the Company reported a net
loss of ($438,961) in the third quarter of 2010. This compared with net
income of $81,402, after income tax expense of $50,000, in the quarter
ended September 30, 2009.
The Company reported a net loss of ($0.03) per share in the most recent
quarter, compared with net income of $0.01 per diluted share in the
prior-year quarter.
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 ($22,061), or ($0.00) per share, in the
quarter ended September 30, 2010, versus adjusted net income of $716,370,
or $0.05 per diluted share, in the quarter ended September 30, 2009.
(Non-GAAP adjusted net income (loss) is described in greater detail in a
table at the end of this news release).
For the nine months ended September 30, 2010, the Company's revenue
increased 10% to approximately $18.9 million, compared with revenue of
approximately $17.1 million in the first nine months of 2009.
Gross profits increased 9% to $9,498,155, versus $8,705,134 in the nine
months ended September 30, 2010. Gross profit margins approximated 50.3%
of revenue in the first nine months of 2010, versus 50.8% in the
year-earlier period.
SG&A expenses increased 9% to $11,816,226 (62.7% of revenue) in the nine
months ended September 30, 2010, versus $10,835,968 (63.2% of sales) in the
first nine months of 2009. Research and development expenses declined 7%
to $2,595,801, versus $2,803,038 in the nine months ended September 30,
2009. Sales commission expense totaled $1,609,820 in the first nine months
of 2010, compared with $1,571,269 in the nine months ended September 30,
2009. Promotional and advertising expenses increased to $498,388, versus
$351,266 in the first nine months of 2009. Stock-based compensation
increased from $1,054,003 in the first nine months of 2009 to $1,370,346 in
the most recent nine-month period; and charges related to the purchase and
cancellation of employee stock options decreased to $0 in the first nine
months of 2010, compared with $358,104 in the year-earlier period. The
Company recognized a benefit of $278,173 during August 2009 related to the
resolution of a dispute with a vendor, while no similar event occurred
during 2010. Professional fees and expenses decreased to $839,018 in the
first nine months of 2010, from $851,625 in the prior-year period.
Executive, sales and administrative staff payroll expenses totaled
$2,877,384 in the nine months ended September 30, 2010, versus $2,233,430
in the nine months ended September 30, 2009. Other SG&A expenses increased
to $2,025,469 in the first nine months of 2010, versus $1,891,406 in the
corresponding period of the previous year.
The Company reported an operating loss of ($2,318,071) in the nine months
ended September 30, 2010, compared with an operating loss of ($2,130,834)
in the prior-year period.
A pretax loss of ($2,303,790) was recorded in the nine months ended
September 30, 2010, versus a pretax loss of ($2,103,745) in the first nine
months of 2009. After an income tax benefit of $748,000, the Company
reported a net loss of ($1,555,790) in the first nine months of 2010. This
compared with a net loss of ($1,383,745), including an income tax benefit
of $720,000, in the nine months ended September 30, 2009.
The Company reported a net loss of ($0.09) per share in the nine months
ended September 30, 2010, compared with a net loss of ($0.09) per share in
the nine months ended September 30, 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 ($333,171), or ($0.02) per share, in the
nine months ended September 30, 2010, versus an adjusted net loss of
($20,803), or ($0.00) per share, in the nine months ended September 30,
2009.
(Non-GAAP adjusted net income (loss) is described in greater detail in a
table at the end of this news release).
"We ended the third quarter with a strong balance sheet," added Heckman.
"While our cash balances declined due primarily to the repurchase of
approximately $500,000 worth of common stock and an increase in inventories
in anticipation of sizeable international orders, working capital at
September 30, 2010 exceeded $14 million, and stockholders' equity
approximated $17 million."
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 (EST) tomorrow, November 11, 2010, to discuss its third quarter and
nine-month 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. EST on November 11, 2010.
The call will also be broadcast live on the Internet at
www.videonewswire.com/event.asp?id=74166. A replay of the conference call
will be available one hour after the completion of the conference call
until 5:00 a.m. on Monday, January 10, 2011 by dialing 877-344-7529
(international/local participants dial 412-317-0088) and entering the
conference ID 445899.
The call will also be archived on the Internet through January 10, 2011, at
www.videonewswire.com/event.asp?id=74166 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 obtain certain international orders in the fourth
quarter of 2010; 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; whether the initial
interest in its new products will translate into future sales; whether its
international marketing initiatives will increase 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, 2009, and its
quarterly report on Form 10-Q for the three and nine months ended September
30, 2010, as filed with the Securities and Exchange Commission.
DIGITAL ALLY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2010 AND DECEMBER 31, 2009
(Unaudited)
September 30, December 31,
2010 2009
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 90,611 $ 183,150
Accounts receivable-trade, less
allowance for doubtful accounts of
$110,000 - 2010 and $110,000 - 2009 6,267,060 8,398,353
Accounts receivable-other 339,308 476,049
Inventories 9,445,476 7,370,505
Prepaid expenses 418,295 224,923
Deferred taxes 2,520,000 1,695,000
------------ ------------
Total current assets 19,080,750 18,347,980
------------ ------------
Furniture, fixtures and equipment 3,266,035 3,010,977
Less accumulated depreciation and amortization 2,129,397 1,592,874
------------ ------------
1,136,638 1,418,103
------------ ------------
Deferred taxes 1,098,000 1,160,000
Intangible assets, net 301,438 336,182
Other assets 143,196 135,674
------------ ------------
Total assets $ 21,760,022 $ 21,397,939
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,825,148 $ 2,000,541
Line of credit 1,250,000 --
Accrued expenses 753,458 1,781,969
Income taxes payable 13,388 9,171
Customer deposits -- 39,924
------------ ------------
Total current liabilities 4,841,994 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 21,384,193 20,007,430
Treasury stock, at cost (shares: 508,145
- 2010 and 248,610 - 2009) (2,157,226) (1,687,465)
Retained earnings (deficit) (2,325,591) (769,801)
------------ ------------
Total stockholders' equity 16,918,028 17,566,334
------------ ------------
Total liabilities and stockholders' equity $ 21,760,022 $ 21,397,939
============ ============
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE COMPANY'S QUARTERLY
REPORT ON FORM 10-Q FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2010 AND ANNUAL REPORT ON FORM 10-K AS FILED WITH THE SEC)
DIGITAL ALLY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2010 AND 2009
(Unaudited)
Three months ended Nine Months ended
September 30, September 30,
---------------------- -----------------------
2010 2009 2010 2009
---------- ---------- ---------- -----------
Product revenue $6,812,137 $5,565,667 $18,343,159 $16,270,054
Other revenue 211,034 149,016 509,879 851,009
---------- ---------- ----------- -----------
Total revenue 7,023,171 5,714,683 18,853,038 17,121,063
Cost of revenue 3,738,526 2,379,694 9,354,883 8,415,929
---------- ---------- ----------- -----------
Gross profit 3,284,645 3,334,989 9,498,155 8,705,134
Selling, general and
administrative expenses:
Research and development
expense 900,210 696,523 2,595,801 2,803,038
Selling, advertising and
promotional expense 669,216 748,634 2,108,208 1,922,535
Stock-based compensation
expense 387,674 348,704 1,370,346 1,054,003
Charges related to
purchase and cancellation
of employee stock
options -- -- -- 358,104
Vendor settlements
and credits -- (278,173) -- (278,173)
General and administrative
expense 1,919,546 1,696,865 5,741,871 4,976,461
---------- ---------- ----------- -----------
Total selling, general and
administrative expenses 3,876,646 3,212,553 11,816,226 10,835,968
---------- ---------- ----------- -----------
Operating income (loss) (592,001) 122,436 (2,318,071) (2,130,834)
---------- ---------- ----------- -----------
Interest income 4,623 8,966 18,864 27,089
Interest expense (4,583) -- (4,583) --
---------- ---------- ----------- -----------
Income (Loss) before
income tax (expense)
benefit (591,961) 131,402 (2,303,790) (2,103,745)
Income tax (expense)
benefit 153,000 (50,000) 748,000 720,000
---------- ---------- ----------- -----------
Net income (loss) $ (438,961) $ 81,402 $(1,555,790) $(1,383,745)
========== ========== =========== ===========
Net income (loss) per
share information:
Basic $ (0.03) $ 0.01 $ (0.09) $ (0.09)
Diluted $ (0.03) $ 0.01 $ (0.09) $ (0.09)
Weighted average shares
outstanding:
Basic 16,144,073 15,821,075 16,652,218 15,756,342
Diluted 16,144,073 16,008,581 16,652,218 15,756,342
DIGITAL ALLY, INC.
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED NET INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2010 AND 2009
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- --------------------------
2010 2009 2010 2009
---------- ----------- ------------ ------------
Net income (loss) $ (438,961) $ 81,402 $ (1,555,790) $ (1,383,745)
Non-GAAP adjustments:
Income tax provision
(benefit) (153,000) 50,000 (748,000) (720,000)
Stock-based
compensation 387,674 348,704 1,370,346 1,412,107
Depreciation and
amortization 182,226 236,264 600,273 670,835
---------- ----------- ------------ ------------
Total Non-GAAP
adjustments 416,900 634,968 1,222,619 1,362,942
---------- ----------- ------------ ------------
Non-GAAP adjusted net
Income (loss) $ (22,061) $ 716,370 $ (333,171) $ (20,803)
========== =========== ============ ============
Non-GAAP adjusted net
income (loss) per
share information:
Basic $ -- $ 0.05 $ (0.02) $ --
Diluted $ -- $ 0.05 $ (0.02) $ --
Weighted average shares
outstanding:
Basic 16,144,073 15,821,075 16,652,218 15,576,342
Diluted 16,144,073 16,008,581 16,652,218 15,576,342
DIGITAL ALLY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(Unaudited)
2010 2009
------------ ------------
Cash Flows From Operating Activities:
Net loss $ (1,555,790) $ (1,383,745)
Adjustments to reconcile net loss to net
cash flows provided by (used in) operating
activities:
Depreciation and amortization 600,273 670,835
Stock based compensation 1,370,346 1,412,107
Provision for inventory obsolescence (5,397) 334,754
Provision for bad debt allowance -- 20,000
Deferred tax benefit (763,000) (610,000)
Change in operating assets and
liabilities:
Accounts receivable - trade 2,131,293 809,802
Accounts receivable - other 136,741 (69,238)
Inventories (2,069,574) (68,292)
Prepaid income taxes -- 85,943
Prepaid expenses (193,372) (78,652)
Other assets (7,522) (21,909)
Accounts payable 824,607 (766,450)
Accrued expenses (1,111,912) 214,666
Income taxes payable 4,217 4,482
Customer deposits (39,924) (79,612)
------------ ------------
Net cash provided by (used in) operating
activities (679,014) 474,691
------------ ------------
Cash Flows from Investing Activities:
Purchases of furniture, fixtures and
equipment (255,058) (398,101)
Additions to intangible assets (29,006) (23,034)
------------ ------------
Net cash used in investing activities (284,064) (421,135)
------------ ------------
Cash Flows from Financing Activities:
Borrowings under line of credit agreement,
net 1,250,000 --
Proceeds from exercise of stock options
and warrants 95,300 261,399
Deficiency in tax benefits related to
stock-based compensation (5,000) (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 870,539 (241,713)
------------ ------------
Decrease in cash and cash equivalents (92,539) (188,157)
Cash and cash equivalents, beginning of period 183,150 1,205,947
------------ ------------
Cash and cash equivalents, end of period $ 90,611 $ 1,017,790
============ ============
Supplemental disclosures of cash flow
information:
Cash payments for interest $ 4,583 $ --
============ ============
Cash payments for income taxes $ 15,783 $ 21,500
============ ============
Supplemental disclosures of non-cash investing
and financing activities:
Common stock surrendered as consideration for
exercise of stock options $ 833,991 $ 321,743
============ ============
Contact Information: For Additional Information, Please Contact:
Stanton E. Ross, CEO
(913) 814-7774
RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893
info@rjfalkner.com