503000
642000
6000
16000
88000
102000
136000
1746000
1787000
54000
81000
64000
64000
1288000
6000
20000
3158000
1952000
54000
49000
81000
230000
343000
338000
478000
617000
478000
617000
4000
4000
33747000
33683000
49000
49000
-31022000
-32303000
2680000
1335000
3158000
1952000
0.0001
0.0001
100000000
100000000
45042006
45567006
45042006
45567006
25000
25000
810000
890000
2887000
2964000
224000
278000
729000
736000
1034000
1168000
3616000
3700000
55000
146000
190000
619000
1089000
1314000
3806000
4319000
495000
504000
1636000
1817000
211000
226000
709000
736000
268000
296000
665000
746000
251000
268000
858000
919000
16000
17000
1241000
1311000
3918000
4266000
-152000
3000
-112000
53000
1000
1000
1000
2000
1000
8000
3000
1000
11000
1000
4000
-101000
54000
-59000
-1429000
6000
50000
48000
64000
62000
2000
-139000
-392000
-10000
7000
1424000
19000
-174000
-150000
-292000
5000
195000
39000
272000
14000
2000
22000
24000
-6000
-24000
47000
-47000
-14000
248000
1027000
871000
1013000
1119000
-7000
2000
10-Q
2013-09-30
false
Cimetrix Incorporated
0000786620
--12-31
45042006
Smaller Reporting Company
Yes
No
No
2013
Q3
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;line-height:normal;text-autospace:none'><b>NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'><b>Organization</b> – Cimetrix Incorporated, a Nevada corporation, and its subsidiaries (Cimetrix or the Company) is a software engineering company that designs, develops, markets and supports factory connectivity and equipment control products for today’s smart, connected factories. The Company’s primary customers are original equipment manufacturers (OEMs) that supply precision electronics manufacturing equipment for semiconductor wafer fabrication, solar/photovoltaic (PV), high-brightness light-emitting diode (HB-LED) and other electronics manufacturing.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'><b>Basis of Presentation</b> – The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Cimetrix Japan K.K., Cimetrix Europe, Inc. and Cimetrix Data Management Solutions, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. The interim financial information of the Company as of September 30, 2013 and for the three and nine month periods ended September 30, 2013 and 2012 is unaudited, and the balance sheet as of December 31, 2012 is derived from audited financial statements. The accompanying condensed consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform with the accounting policies disclosed in Note 1 to the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. In the opinion of management, all adjustments that are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2013. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;line-height:normal;text-autospace:none'><b>NOTE 2 – STOCK-BASED COMPENSATION</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) Topic 718<i>. </i>Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award granted and recognized as expense over the period in which the award is expected to vest.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.5in;line-height:normal;text-autospace:none'>The stock-based compensation expense has been allocated to the various categories of operating costs and expenses in a manner similar to the allocation of payroll expense as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.5in;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='line-height:115%;margin-left:26.3pt;border-collapse:collapse'> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="148" colspan="2" valign="bottom" style='width:110.8pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Three Months Ended</b></p> </td> <td width="140" colspan="2" valign="bottom" style='width:105.2pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Nine Months Ended</b></p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="148" colspan="2" valign="bottom" style='width:110.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> <td width="140" colspan="2" valign="bottom" style='width:105.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Cost of revenues</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$5,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$6,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$18,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$19,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Sales and marketing</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>3,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>2,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>9,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>6,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Research and development</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>4,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>3,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>12,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>8,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>General and administrative</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>8,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>7,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>25,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>29,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total stock-based compensation expense</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$20,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$18,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$64,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$62,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Impact on basic income per common share</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Impact on diluted income per common share</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>During the nine months ended September 30, 2013, options to purchase 150,000 shares of the Company’s common stock were granted to the Company’s employees and directors, with an exercise price of $0.13 per share.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The total stock-based compensation costs from vesting restricted stock shares in the nine month periods of September 30, 2013 and 2012 was $0 and $13,000, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.5in;line-height:normal;text-autospace:none'>As of September 30, 2013, the total unrecognized compensation cost related to non-vested stock-based awards was $153,000. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.10 years.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;line-height:normal;text-autospace:none'><b>NOTE 3 – EARNINGS PER SHARE</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>Basic earnings per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding, including unissued awards of restricted stock, which are deemed to be participating securities, during the period. Diluted earnings per common share is computed by dividing the net income (loss) for the period by the sum of the weighted-average number of common shares outstanding plus the weighted-average common stock equivalents, which would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options and unvested restricted stock. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury method.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The following table sets forth the computation of basic and diluted earnings per common share:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='line-height:115%;margin-left:26.15pt;border-collapse:collapse'> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="131" colspan="2" valign="bottom" style='width:98.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Three Months Ended</b></p> </td> <td width="137" colspan="2" valign="bottom" style='width:102.65pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Nine Months Ended</b></p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="131" colspan="2" valign="bottom" style='width:98.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> <td width="137" colspan="2" valign="bottom" style='width:102.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Numerator:</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Net (loss) income</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$(90,000)</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$4,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$1,328,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$48,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Denominator:</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Basic weighted average shares outstanding</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,227,000</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,727,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,499,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,716,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Effect of dilutive securities:</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Stock options</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>-</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>731,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>625,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>702,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Diluted weighted average shares outstanding</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>45,227,000</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>46,458,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>46,124,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>46,418,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net income (loss) per share</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Basic</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$(0.00)</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.03</p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Diluted</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$(0.00)</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.03</p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>Potentially dilutive securities representing approximately 2,203,000 and 3,031,000 shares of common stock at September 30, 2013 and 2012, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>NOTE 4 – DEBT</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'><b>Revolving Bank Line of Credit - </b>The Company and Silicon Valley Bank (the “Bank”) entered into a Loan and Security Agreement (“Agreement”), effective as of September 27, 2011. On September 26, 2012, the Company and the Bank entered into a First Amendment to the Loan and Security Agreement. The First Amendment extended the maturity date of the Agreement to September 25, 2013. On October 1, 2013, the Company and the Bank entered into a Second Amendment to the Agreement, effective September 25, 2013. The Second Amendment extended the maturity date of the Agreement to September 24, 2014, reduced the applicable interest rate and certain other fees associated with Agreement and increased the level of tangible net worth required to be maintained. Line of credit advances are available to the Company in accordance with a defined “Availability Amount”, based in part on qualifying accounts receivable, up to a maximum of $1 million. The line of credit bears interest at the</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>prime rate plus .75%, payable monthly. The line of credit is collateralized by substantially all operating assets of the Company. Interest payments are payable on the first day of each month with all principal advances payable on the maturity date of the line of credit. As of September 30, 2013, the Company had no borrowings against the line of credit.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>Under the line of credit agreement, the Company is required to comply with the following financial covenants:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;text-autospace:none'>·       Maintain a ratio of quick assets to current liabilities minus deferred revenue of at least: 1.50 to 1.00</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in;line-height:normal;text-autospace:none'>·       Maintain a tangible net worth equal to or greater than the sum of (i) $2,000,000, plus (ii) for each successive quarter, commencing as of the quarter ending December 31, 2013, 50% of net proceeds received by Company in the preceding quarter from bona-fide issuances of new equity or bridge financing which constitutes “subordinated debt” and 50% of net income.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The line of credit agreement also contains numerous negative covenants restricting certain actions by the Company without the Bank’s consent, such as are typically included in similar loan agreements, including restrictions on the payment of dividends, restrictions on incurring additional debt, prohibitions restricting major corporation transactions, including a sale of the business, and a requirement that the Company retain certain key employees.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>At September 30, 2013, the Company was in compliance with all covenants.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>NOTE 5 – COMMON STOCK</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The Company had 185,000 vested restricted stock awards for which shares of common stock have not been issued as of September 30, 2013 and December 31, 2012.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>On June 6, 2013, and March 28, 2013, the Company entered into transactions with two of its shareholders to redeem 425,000 and 100,000 shares of stock, respectively, for a total of $47,000 which is included as a reduction in accumulated deficit, at cost. The 525,000 shares redeemed were retired.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>NOTE 6 – RELATED PARTY TRANSACTIONS</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.5in;line-height:normal;text-autospace:none'>During the three and nine months ended September 30, 2013 and 2012, the Company had the following revenues from one customer that was also a shareholder of the Company:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='line-height:115%;margin-left:.05pt;border-collapse:collapse'> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Three Months Ended</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Nine Months Ended</b></p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>New software licenses</p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 51,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 117,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 141,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 210,000</p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Software license updates and product support</p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 34,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 51,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 84,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 103,000</p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total software revenues</p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 85,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 168,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 225,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 313,000</p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'>The Company had accounts receivable from one customer that was also a shareholder totaling $87,000 and $22,000 at September 30, 2013 and December 31, 2012, respectively<b>.</b></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;line-height:normal;text-autospace:none'><b>NOTE 7 – INCOME TAXES</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The Company’s income tax calculations are based on application of the respective U.S. federal and state laws. Accordingly, the Company recognizes tax liabilities based upon estimates of whether additional taxes will be due when such estimates are more likely than not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the Condensed Consolidated Statements of Operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>As part of the process of preparing consolidated financial statements, the Company is required to estimate income taxes in each of the jurisdictions in which it operates. This process involves estimating the Company’s actual current income tax exposure together with assessing temporary differences resulting from differing treatment of items for income tax and financial accounting purposes. These temporary differences result in deferred tax assets and liabilities, the net amount of which is included in the Company’s Condensed Consolidated Balance Sheets. When appropriate, the Company records a valuation allowance to reduce its deferred tax assets to the amount that the Company believes is more likely than not to be realized. Key assumptions used in estimating a valuation allowance include potential future taxable income, projected income tax rates, expiration dates of net operating loss and tax credit carry forwards, and ongoing prudent and feasible tax planning strategies.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>As of December 31, 2012, the Company had a net operating loss carry forward of approximately $16,695,000, that may be offset against future taxable income. Portions of the net operating loss carry forward expire at various times during the period from 2018 through 2034. Use of this net operating loss carry forward could also be limited in the event of substantial changes in the Company’s ownership. Based on the foregoing, at December 31, 2012, the valuation of the Company’s deferred tax asset was $7,686,000 and due to the Company’s historical lack of earnings, the Company did not include any of this deferred tax asset on its December 31, 2012 Condensed Consolidated Balance Sheets.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>Subsequently, the Company evaluated its historic and estimated future net income and calculated a valuation allowance at June 30, 2013 of $6,320,000. The change in the valuation allowance of $1,366,000 was reported as a component of the provision for income taxes (benefit) in the accompanying Condensed Consolidated Statements of Operations and as a deferred tax asset on the Condensed Consolidated Balance Sheets.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>As of September 30, 2013, the value of the deferred tax asset was $1,424,000, reflecting an increase of $58,000 for the three months ended September 30, 2013 to reflect the income tax benefit resulting from the net loss of $149,000 of the same period.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;line-height:normal;text-autospace:none'><b>NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:.5in;line-height:normal;text-autospace:none'>The Company’s financial instruments consist of cash, which approximates fair value because of the immediate or short-term maturities of the financial instruments included in this category.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'><b>NOTE 9 – SUBSEQUENT EVENTS</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;line-height:normal;text-autospace:none'> Management has evaluated events through the date the condensed consolidated financial statements were filed with the Securities and Exchanges Commission and concluded there were no subsequent events to report in the notes to the financial statements.</p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='line-height:115%;margin-left:26.3pt;border-collapse:collapse'> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="148" colspan="2" valign="bottom" style='width:110.8pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Three Months Ended</b></p> </td> <td width="140" colspan="2" valign="bottom" style='width:105.2pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Nine Months Ended</b></p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="148" colspan="2" valign="bottom" style='width:110.8pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> <td width="140" colspan="2" valign="bottom" style='width:105.2pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Cost of revenues</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$5,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$6,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$18,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$19,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Sales and marketing</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>3,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>2,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>9,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>6,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Research and development</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>4,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>3,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>12,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>8,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>General and administrative</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>8,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>7,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>25,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>29,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total stock-based compensation expense</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$20,000</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$18,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$64,000</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$62,000</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Impact on basic income per common share</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Impact on diluted income per common share</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="74" valign="bottom" style='width:55.4pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="70" valign="bottom" style='width:52.6pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="340" valign="bottom" style='width:254.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="74" valign="bottom" style='width:55.4pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="70" valign="bottom" style='width:52.6pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> </table>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='line-height:115%;margin-left:26.15pt;border-collapse:collapse'> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="131" colspan="2" valign="bottom" style='width:98.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Three Months Ended</b></p> </td> <td width="137" colspan="2" valign="bottom" style='width:102.65pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Nine Months Ended</b></p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="131" colspan="2" valign="bottom" style='width:98.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> <td width="137" colspan="2" valign="bottom" style='width:102.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Numerator:</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Net (loss) income</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$(90,000)</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$4,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$1,328,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$48,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Denominator:</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Basic weighted average shares outstanding</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,227,000</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,727,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,499,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>45,716,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Effect of dilutive securities:</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Stock options</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>-</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>731,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>625,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>702,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Diluted weighted average shares outstanding</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>45,227,000</p> </td> <td width="65" valign="bottom" style='width:49.0pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>46,458,000</p> </td> <td width="65" valign="bottom" style='width:48.95pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>46,124,000</p> </td> <td width="72" valign="bottom" style='width:53.7pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>46,418,000</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Net income (loss) per share</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Basic</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$(0.00)</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.03</p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Diluted</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$(0.00)</p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.03</p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'>$0.00</p> </td> </tr> <tr align="left"> <td width="360" valign="bottom" style='width:270.3pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:49.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="65" valign="bottom" style='width:48.95pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="72" valign="bottom" style='width:53.7pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> </table>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> <table border="0" cellspacing="0" cellpadding="0" style='line-height:115%;margin-left:.05pt;border-collapse:collapse'> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Three Months Ended</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>Nine Months Ended</b></p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="205" colspan="3" valign="top" style='width:153.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>September 30,</b></p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2013</b></p> </td> <td width="22" valign="top" style='width:16.35pt;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal;text-autospace:none'><b>2012</b></p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>New software licenses</p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 51,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 117,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 141,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 210,000</p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'>Software license updates and product support</p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 34,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 51,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 84,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:solid black 1.0pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:white;text-autospace:none'> 103,000</p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'>Total software revenues</p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 85,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 168,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 225,000</p> </td> <td width="22" valign="top" style='width:16.35pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:#CCEEFF;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal;background:#CCEEFF;text-autospace:none'> $ 313,000</p> </td> </tr> <tr align="left"> <td width="266" valign="top" style='width:199.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="22" valign="top" style='width:16.35pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> <td width="92" valign="top" style='width:68.65pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;background:white;text-autospace:none'> </p> </td> </tr> </table>
5000
6000
18000
19000
3000
2000
9000
6000
4000
3000
12000
8000
8000
7000
25000
29000
20000
18000
64000
62000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
150000
0.13
0
13000
153000
P2Y1M6D
-90000
4000
1328000
48000
45227000
45727000
45499000
45716000
731000
625000
702000
45227000
46458000
46124000
46418000
-0.00
0.00
0.03
0.00
-0.00
0.00
0.03
0.00
2203000
3031000
2011-09-27
1000000
The line of credit bears interest at the prime rate plus .75%, payable monthly.
The line of credit is collateralized by substantially all operating assets of the Company
Under the line of credit agreement, the Company is required to comply with the following financial covenants: · Maintain a ratio of quick assets to current liabilities minus deferred revenue of at least: 1.50 to 1.00 · Maintain a tangible net worth equal to or greater than the sum of (i) $2,000,000, plus (ii) for each successive quarter, commencing as of the quarter ending December 31, 2013, 50% of net proceeds received by Company in the preceding quarter from bona-fide issuances of new equity or bridge financing which constitutes “subordinated debt” and 50% of net income. The line of credit agreement also contains numerous negative covenants restricting certain actions by the Company without the Bank’s consent, such as are typically included in similar loan agreements, including restrictions on the payment of dividends, restrictions on incurring additional debt, prohibitions restricting major corporation transactions, including a sale of the business, and a requirement that the Company retain certain key employees.
At September 30, 2013, the Company was in compliance with all covenants.
185000
185000
425000
100000
47000
525000
51000
117000
141000
210000
34000
51000
84000
103000
85000
168000
225000
313000
87000
22000
16695000
7686000
6320000
1366000
1424000
58000
-149000
0000786620
2013-01-01
2013-09-30
0000786620
2013-09-30
0000786620
2013-11-01
0000786620
2012-12-31
0000786620
2013-07-01
2013-09-30
0000786620
2012-07-01
2012-09-30
0000786620
2012-01-01
2012-09-30
0000786620
2011-12-31
0000786620
2012-09-30
0000786620
us-gaap:CostOfSalesMember
2013-01-01
2013-09-30
0000786620
us-gaap:CostOfSalesMember
2013-07-01
2013-09-30
0000786620
us-gaap:CostOfSalesMember
2012-07-01
2012-09-30
0000786620
us-gaap:CostOfSalesMember
2012-01-01
2012-09-30
0000786620
us-gaap:RestrictedStockMember
2013-01-01
2013-09-30
0000786620
us-gaap:RestrictedStockMember
2012-01-01
2012-09-30
0000786620
us-gaap:RestrictedStockUnitsRSUMember
2013-01-01
2013-09-30
0000786620
us-gaap:RestrictedStockUnitsRSUMember
2012-01-01
2012-12-31
0000786620
us-gaap:InvestorMember
2013-01-01
2013-09-30
0000786620
us-gaap:InvestorMember
2013-07-01
2013-09-30
0000786620
us-gaap:InvestorMember
2012-07-01
2012-09-30
0000786620
us-gaap:InvestorMember
2012-01-01
2012-09-30
0000786620
us-gaap:InvestorMember
2013-09-30
0000786620
us-gaap:InvestorMember
2012-12-31
0000786620
2013-06-30
0000786620
2013-01-01
2013-06-30
0000786620
us-gaap:SellingAndMarketingExpenseMember
2013-01-01
2013-09-30
0000786620
us-gaap:SellingAndMarketingExpenseMember
2013-07-01
2013-09-30
0000786620
us-gaap:SellingAndMarketingExpenseMember
2012-07-01
2012-09-30
0000786620
us-gaap:SellingAndMarketingExpenseMember
2012-01-01
2012-09-30
0000786620
us-gaap:ResearchAndDevelopmentExpenseMember
2013-01-01
2013-09-30
0000786620
us-gaap:ResearchAndDevelopmentExpenseMember
2013-07-01
2013-09-30
0000786620
us-gaap:ResearchAndDevelopmentExpenseMember
2012-07-01
2012-09-30
0000786620
us-gaap:ResearchAndDevelopmentExpenseMember
2012-01-01
2012-09-30
0000786620
us-gaap:GeneralAndAdministrativeExpenseMember
2013-01-01
2013-09-30
0000786620
us-gaap:GeneralAndAdministrativeExpenseMember
2013-07-01
2013-09-30
0000786620
us-gaap:GeneralAndAdministrativeExpenseMember
2012-07-01
2012-09-30
0000786620
us-gaap:GeneralAndAdministrativeExpenseMember
2012-01-01
2012-09-30
0000786620
fil:ImpactOnEarningsMember
2013-01-01
2013-09-30
0000786620
fil:ImpactOnEarningsMember
2013-07-01
2013-09-30
0000786620
fil:ImpactOnEarningsMember
2012-07-01
2012-09-30
0000786620
fil:ImpactOnEarningsMember
2012-01-01
2012-09-30
0000786620
fil:Investor2Member
2013-01-01
2013-09-30
iso4217:USD
shares
iso4217:USD
shares