Delaware
|
06-1123096
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification
No.)
|
|
incorporation
or organization)
|
INDEX
|
Page
|
||
PART
I
|
|||
Item
1
|
Description
of Business
|
3
|
|
Item
2
|
Description
of Property
|
8
|
|
Item
3
|
Legal
Proceedings
|
8
|
|
Item
4
|
Submission
of Matters to a Vote of Security Holders
|
8
|
|
PART
II
|
|||
Item
5
|
Market
for Common Equity, Related Stockholder Matters and Small Business
Issuer
Purchases of Equity Securities
|
8
|
|
Item
6
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
9
|
|
Item
7
|
Financial
Statements
|
13
|
|
Report
of UHY LLP, Independent Registered Public Accounting Firm
|
F-1
|
||
Consolidated
Balance Sheets as of December 31, 2005 and 2004
|
F-2
|
||
Consolidated
Statements of Operations for the Years Ended December 31, 2005
and
2004
|
F-3
|
||
Consolidated
Statements of Changes in Shareholders’ Equity for the Years Ended December
31, 2005 and 2004
|
F-4
|
||
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2005
and
2004
|
F-5
|
||
Notes
to Consolidated Financial Statements
|
F-6
to F-17
|
||
Item
8
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
14
|
|
Item
8A
|
Controls
and Procedures
|
14
|
|
Item
8B
|
Other
Information
|
14
|
|
PART
III
|
|||
Item
9
|
Directors,
Executive Officers, Promoters and Control Persons; Compliance with
Section
16(a) of the Exchange Act
|
14
|
|
Item
10
|
Executive
Compensation
|
14
|
|
Item
11
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
15
|
|
Item
12
|
Certain
Relationships and Related Transactions
|
15
|
|
Item
13
|
Exhibits
|
16
|
|
Item
14
|
Principal
Accountant Fees and Services
|
17
|
|
Signatures
|
18
|
Financial
Information Relating to Sales
|
|||||||
Year
Ended December 31
|
|||||||
2005
|
2004
|
||||||
Domestic
Sales
|
$
|
21,891,805
|
$
|
15,589,202
|
|||
Export
Sales
|
4,992,616
|
4,470,070
|
|||||
$
|
26,884,421
|
$
|
20,059,272
|
Quarter
Ended
|
High
|
Low
|
||||||
March
31, 2004
|
$
|
1.62
|
$
|
1.27
|
||||
June
30, 2004
|
$
|
1.67
|
$
|
1.21
|
||||
September
30, 2004
|
$
|
1.51
|
$
|
1.29
|
||||
December
31, 2004
|
$
|
2.95
|
$
|
1.33
|
||||
March
31, 2005
|
$
|
2.72
|
$
|
2.20
|
||||
June
30, 2005
|
$
|
4.15
|
$
|
2.33
|
||||
September
30, 2005
|
$
|
5.60
|
$
|
3.75
|
||||
December
31, 2005
|
$
|
9.10
|
$
|
4.21
|
Title
of Class
|
Number of
Shareholders
|
|
Common
stock, $.004 par value
|
2,030
|
Contractual
Obligations
|
Total
|
One
Year
or
Less
|
2
-
4
Years
|
5
-
7
Years
|
More
Than
Seven
Years
|
||||||||||||
Long-term
debt
|
$
|
4,990,317
|
$
|
574,115
|
$
|
1,943,752
|
$
|
1,953,720
|
$
|
518,730
|
|||||||
Notes
payable
|
206,359
|
206,359
|
—
|
—
|
—
|
||||||||||||
Operating
leases
|
361,469
|
159,877
|
195,787
|
5,805
|
—
|
||||||||||||
Retirement
benefit obligation, as amended
|
8,151
|
8,151
|
—
|
—
|
—
|
||||||||||||
$
|
5,566,296
|
$
|
948,502
|
$
|
2,139,539
|
$
|
1,959,525
|
$
|
518,730
|
Page
|
||
Report
of UHY LLP, Independent Registered Public Accounting Firm
|
F-1
|
|
Financial
Statements
|
||
Consolidated
Balance Sheets as of December 31, 2005 and 2004
|
F-2
|
|
Consolidated
Statements of Operations for the Years Ended December 31, 2005
and 2004
|
F-3
|
|
Consolidated
Statements of Changes in Shareholders' Equity for the Years
Ended December
31, 2005 and 2004
|
F-4
|
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2005
and 2004
|
F-5
|
|
Notes
to Consolidated Financial Statements
|
F-6
to F-17
|
ASSETS
|
2005
|
2004
|
|||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash equivalents
|
$
|
1,892,584
|
$
|
1,973,452
|
|||
Accounts
receivable, less allowance of $75,000 in 2005 and
$94,000 in 2004
|
3,218,963
|
2,929,167
|
|||||
Inventories
|
5,592,807
|
2,662,686
|
|||||
Deferred
income taxes
|
318,262
|
250,342
|
|||||
Other
current assets
|
494,182
|
355,367
|
|||||
Total
current assets
|
11,516,798
|
8,171,014
|
|||||
PROPERTY
AND EQUIPMENT:
|
|||||||
Land
and improvements
|
535,000
|
535,000
|
|||||
Buildings
and improvements
|
1,584,159
|
1,473,698
|
|||||
Machinery
and equipment
|
3,698,457
|
2,908,376
|
|||||
5,817,616
|
4,917,074
|
||||||
Accumulated
depreciation
|
(3,080,160
|
)
|
(2,649,031
|
)
|
|||
Property
and equipment, net
|
2,737,456
|
2,268,043
|
|||||
INTANGIBLE
AND OTHER ASSETS, net
|
360,186
|
167,990
|
|||||
GOODWILL
|
3,079,021
|
—
|
|||||
DEFERRED
INCOME TAXES
|
224,620
|
385,935
|
|||||
Total
assets
|
$
|
17,918,081
|
$
|
10,992,982
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Current
portion of long-term debt
|
$
|
574,115
|
$
|
58,929
|
|||
Notes
payable
|
206,359
|
—
|
|||||
Accounts
payable
|
2,167,396
|
734,939
|
|||||
Income
taxes payable
|
18,999
|
417,130
|
|||||
Accrued
expenses
|
1,068,035
|
854,410
|
|||||
Total
current liabilities
|
4,034,904
|
2,065,408
|
|||||
LONG-TERM
DEBT, less current portion
|
4,416,202
|
1,034,495
|
|||||
RETIREMENT
BENEFIT OBLIGATION
|
349,567
|
736,988
|
|||||
COMMITMENTS
AND CONTINGENCIES (Note 13)
|
|||||||
SHAREHOLDERS'
EQUITY:
|
|||||||
Series
A cumulative convertible preferred stock, $.001 par
|
|||||||
value
per share, 1,000,000 shares authorized, no shares
|
|||||||
issued
or outstanding
|
—
|
—
|
|||||
Common
stock, $.004 par value per share, 19,000,000
|
|||||||
shares
authorized, 10,027,860 and 9,959,173 shares issued
|
|||||||
as
of December 31, 2005 and 2004, respectively,
|
|||||||
including
shares held in treasury
|
40,456
|
39,837
|
|||||
Common
stock held in treasury, at cost - 86,000 shares
|
(101,480
|
)
|
(101,480
|
)
|
|||
Additional
paid-in capital
|
3,176,911
|
3,031,387
|
|||||
Retained
earnings
|
6,001,521
|
4,186,347
|
|||||
Total
shareholders' equity
|
9,117,408
|
7,156,091
|
|||||
Total
liabilities and shareholders' equity
|
$
|
17,918,081
|
$
|
10,992,982
|
2005
|
2004
|
||||||
NET
SALES
|
$
|
26,884,421
|
$
|
20,059,272
|
|||
OPERATING
EXPENSES:
|
|||||||
Cost
of product sales
|
15,092,322
|
11,055,912
|
|||||
Research
and development
|
1,630,681
|
1,032,445
|
|||||
Selling,
general and administrative
|
7,438,511
|
6,263,352
|
|||||
24,161,514
|
18,351,709
|
||||||
Operating
income
|
2,722,907
|
1,707,563
|
|||||
Interest
expense
|
166,613
|
72,432
|
|||||
Income
before income taxes
|
2,556,294
|
1,635,131
|
|||||
Income
taxes
|
741,120
|
430,246
|
|||||
NET
INCOME
|
$
|
1,815,174
|
$
|
1,204,885
|
|||
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
|||||||
Basic
|
9,941,670
|
9,796,684
|
|||||
Diluted
|
11,729,347
|
11,128,643
|
|||||
EARNINGS
PER COMMON SHARE:
|
|||||||
Basic
|
$
|
0.18
|
$
|
0.12
|
|||
Diluted
|
$
|
0.15
|
$
|
0.11
|
Common
Stock
|
||||||||||||||||||||||
Issued
|
Held
in Treasury
|
Paid-in
|
Retained
|
|||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Earnings
|
Total
|
||||||||||||||||
BALANCE,
December 31, 2003
|
9,712,577
|
$
|
38,851
|
—
|
—
|
$
|
2,870,769
|
$
|
2,981,462
|
$
|
5,891,082
|
|||||||||||
Net
income
|
1,204,885
|
1,204,885
|
||||||||||||||||||||
Common
stock issued upon
|
||||||||||||||||||||||
exercise
of stock options
|
246,596
|
986
|
146,651
|
147,637
|
||||||||||||||||||
Purchase
of common stock for
|
||||||||||||||||||||||
treasury,
from former employee
|
||||||||||||||||||||||
at
fair value
|
86,000
|
$ |
(101,480
|
)
|
(101,480
|
)
|
||||||||||||||||
Tax
benefit from exercise of
|
||||||||||||||||||||||
stock
options
|
13,967
|
13,967
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
BALANCE,
December 31, 2004
|
9,959,173
|
39,837
|
86,000
|
(101,480
|
)
|
3,031,387
|
4,186,347
|
7,156,091
|
||||||||||||||
Net
income
|
1,815,174
|
1,815,174
|
||||||||||||||||||||
Common
stock issued upon
|
||||||||||||||||||||||
exercise
of stock options
|
124,375
|
498
|
99,063
|
99,561
|
||||||||||||||||||
Common
stock issued under
|
||||||||||||||||||||||
Stock
purchase plan
|
30,312
|
121
|
46,461
|
46,582
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
BALANCE,
December 31, 2005
|
10,113,860
|
$
|
40,456
|
86,000
|
$ |
(101,480
|
)
|
$
|
3,176,911
|
$
|
6,001,521
|
$
|
9,117,408
|
2005
|
2004
|
||||||
OPERATING
ACTIVITIES:
|
|||||||
Net
income
|
$
|
1,815,174
|
$
|
1,204,885
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Depreciation
and amortization
|
542,073
|
503,108
|
|||||
Deferred
income taxes
|
36,940
|
80,691
|
|||||
Provision
for doubtful accounts
|
4,000
|
38,000
|
|||||
Curtailment
gain on retirement benefit plan
|
(400,739
|
)
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
126,558
|
339,892
|
|||||
Inventories
|
(1,409,062
|
)
|
(392,070
|
)
|
|||
Other
current assets
|
(122,462
|
)
|
134,084
|
||||
Accounts
payable, income taxes and accrued expenses
|
544,296
|
577,866
|
|||||
Retirement
benefit obligation
|
13,318
|
202,089
|
|||||
Net
cash provided by operating activities
|
1,150,096
|
2,688,545
|
|||||
INVESTING
ACTIVITIES:
|
|||||||
Purchase
of intangible assets
|
(299,214
|
)
|
(80,722
|
)
|
|||
Purchase
of business, net of cash acquired of $250,060
|
(4,524,249
|
) | |||||
Expenditures
for property and equipment
|
(656,896
|
)
|
(425,712
|
)
|
|||
Net
cash used by investing activities
|
(5,480,359
|
)
|
(506,434
|
)
|
|||
FINANCING
ACTIVITIES:
|
|||||||
Borrowing
under short-term notes payable
|
292,267
|
—
|
|||||
Repayments
of short-term notes payable
|
(85,908
|
)
|
(219,619
|
)
|
|||
Proceeds
from long-term debt
|
4,200,000
|
—
|
|||||
Repayments
of long-term debt
|
(303,107
|
)
|
(916,284
|
)
|
|||
Purchase
of common stock for treasury
|
—
|
(101,480
|
)
|
||||
Proceeds
from issuance of common stock
|
146,143
|
147,637
|
|||||
Net
cash provided (used) by financing activities
|
4,249,395
|
(1,089,746
|
)
|
||||
Net
change in cash and cash equivalents
|
(80,868
|
)
|
1,092,365
|
||||
Cash
and cash equivalents, beginning of year
|
1,973,452
|
881,087
|
|||||
CASH
AND CASH EQUIVALENTS, END OF YEAR
|
$
|
1,892,584
|
$
|
1,973,452
|
|||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
|||||||
Cash
paid during the year for interest
|
$
|
148,656
|
$
|
90,798
|
|||
Cash
paid (received) during the year for income taxes, net of
refunds
|
$
|
1,164,873
|
$
|
(193,798
|
)
|
Cash
|
$
|
250,060
|
|||
Accounts
receivable
|
420,354
|
||||
Inventories
|
1,521,059
|
||||
Other
current assets
|
16,353
|
||||
Property
and equipment
|
243,646
|
||||
Intangible
assets, other than goodwill
|
3,926
|
||||
Goodwill
|
3,079,021
|
||||
Accounts
payable
|
(579,067
|
)
|
|||
Accrued
expenses
|
(46,053
|
)
|
|||
Income
taxes
|
(62,563
|
)
|
|||
Deferred
income taxes
|
(56,455
|
)
|
|||
Capital
lease obligations
|
(15,972
|
)
|
|||
$
|
4,774,309
|
2005
|
2004
|
|||||||
Net
sales
|
$
|
29,676,900
|
$
|
25,774,700
|
||||
Net
income
|
$
|
1,995,500
|
$
|
1,315,500
|
||||
Per
share:
|
||||||||
Basic
|
$
|
0.20
|
$
|
0.13
|
||||
Diluted
|
$
|
0.17
|
$
|
0.12
|
Intangible
and other assets consist of:
|
||||||||
|
2005
|
2004
|
||||||
Patents,
purchased technology and other
|
$
|
356,018
|
$
|
185,083
|
||||
Deferred
finance charges
|
26,484
|
26,484
|
||||||
Capitalized
software
|
160,063
|
139,870
|
||||||
542,565
|
351,437
|
|||||||
Accumulated
amortization
|
(182,379
|
)
|
(183,447
|
)
|
||||
$
|
360,186
|
$
|
167,990
|
2006
|
$
|
60,000
|
|||
2007
|
49,700
|
||||
2008
|
32,800
|
||||
2009
|
29,700
|
||||
2010
|
15,200
|
||||
$
|
187,400
|
2005
|
2004
|
|||||||
Beginning
balance
|
$
|
122,000
|
$
|
122,000
|
||||
Provisions
|
91,234
|
128,964
|
||||||
Warranty
costs incurred
|
(91,234
|
)
|
(128,964
|
)
|
||||
Ending
balance
|
$
|
122,000
|
$
|
122,000
|
2005
|
2004
|
|||||||
Weighted
average shares outstanding - used to compute basic earnings per
share
|
9,941,670
|
9,796,684
|
||||||
Dilutive
effect of outstanding warrants and
options
|
1,787,677
|
1,331,959
|
||||||
|
||||||||
Weighted
average shares of dilutive securities outstanding -
used to compute diluted earnings
per share
|
11,729,347
|
11,128,643
|
2005
|
2004
|
||||||||
Net income: |
|
||||||||
As
reported
|
$
|
1,815,176
|
$
|
1,204,885
|
|||||
Compensation
expense for stock options
based on fair value
|
485,395 | 147,428 | |||||||
Pro
forma
|
$
|
1,329,781
|
$
|
1,057,457
|
|||||
Earnings per share: |
|
||||||||
As
reported - Basic
|
$
|
0.18
|
$
|
0.12
|
|||||
Pro
forma - Basic
|
0.13
|
0.11
|
|||||||
As
reported - Diluted
|
0.15
|
0.11
|
|||||||
Pro
forma - Diluted
|
0.11
|
0.10
|
2005
|
2004
|
|||||||
Balance
at beginning of year
|
$
|
94,000
|
$
|
50,000
|
||||
Provision
|
4,000
|
38,000
|
||||||
Accounts
recovered (written off)
|
(23,000
|
)
|
6,000
|
|||||
Balance
at end of year
|
$
|
75,000
|
$
|
94,000
|
2005
|
2004
|
|||||||
Raw
materials
|
$
|
1,140,400
|
$
|
1,727,578
|
||||
Work
in process
|
—
|
144,628
|
||||||
Finished
goods
|
4,452,407
|
790,480
|
||||||
$
|
5,592,807
|
$
|
2,662,686
|
Long-term
debt consists of:
|
2005
|
2004
|
||||||
Mortgage
payable to a bank in monthly installments of $9,750, including interest
at
5.45%, as amended, to January 2018
|
$ | 1,034,495 | $ | 1,093,424 | ||||
Note
payable to a bank in monthly installments of
$61,533, including interest at 6.0% to
May 2012
|
3,955,822
|
—
|
||||||
4,990,317
|
1,093,424
|
|||||||
Less
current portion
|
574,115
|
58,929
|
||||||
$
|
4,416,202
|
$
|
1,034,495
|
2006
|
$
|
574,115
|
|||
2007
|
609,615
|
||||
2008
|
646,823
|
||||
2009
|
687,314
|
||||
2010
|
729,822
|
||||
Thereafter
|
1,742,628
|
||||
$
|
4,990,317
|
2005
|
2004
|
|||||||
Payroll
|
$
|
214,402
|
$
|
163,732
|
||||
Professional
fees
|
218,808
|
58,775
|
||||||
Warranty
|
122,000
|
122,000
|
||||||
Bonuses
|
300,000
|
315,000
|
||||||
Customer
refunds
|
53,514
|
83,364
|
||||||
Other
|
159,311
|
111,539
|
||||||
$
|
1,068,035
|
$
|
854,410
|
2005
|
2004
|
||||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
||||||||||
Outstanding
at beginning of year
|
640,450
|
$
|
0.96
|
693,800
|
$
|
0.63
|
|||||||
Granted
|
317,500
|
2.94
|
249,250
|
1.46
|
|||||||||
Exercised
|
(124,375
|
)
|
0.80
|
(246,600
|
)
|
0.60
|
|||||||
Canceled
|
(30,000
|
)
|
2.10
|
(56,000
|
)
|
0.63
|
|||||||
Outstanding
at end of year
|
803,575
|
1.73
|
640,450
|
0.96
|
|||||||||
Exercisable
at end of year
|
388,200
|
$
|
0.85
|
364,700
|
$
|
0.64
|
|||||||
Weighted average grant-date fair value of options granted during the year |
$
|
2.94
|
1.46
|
Weighted
|
|||||||||||||||||
Average
|
Weighted
|
Weighted
|
|||||||||||||||
Range
of
|
Remaining
|
Average
|
Average
|
||||||||||||||
Exercise
|
Number
|
Contractual
|
Exercise
|
Number
|
Exercise
|
||||||||||||
Prices
|
Outstanding
|
Life
in Years
|
Price
|
Exercisable
|
Price
|
||||||||||||
$
0.53 - $ 0.67
|
192,200
|
5.1
|
$
|
0.60
|
192,200
|
0.60
|
|||||||||||
0.70
- 0.93
|
107,500
|
6.0
|
0.78
|
107,500
|
0.84
|
||||||||||||
1.37
- 2.30
|
331,375
|
8.6
|
1.81
|
88,500
|
1.47
|
||||||||||||
2.50
- 4.65
|
172,500
|
9.5
|
3.41
|
—
|
—
|
||||||||||||
$
0.53 - $ 4.65
|
803,575
|
7.6
|
$
|
1.58
|
388,200
|
0.85
|
2005
|
2004
|
|||||||
Service
cost
|
$
|
43,249
|
$
|
88,865
|
||||
Interest
cost
|
32,148
|
46,918
|
||||||
Amortization
of prior service cost
|
(22,258
|
)
|
113,060
|
|||||
Amortization
of unrecognized gain
|
(13,155
|
)
|
(20,010
|
)
|
||||
Net
periodic benefit (income) cost prior to curtailment
|
39,984
|
228,833
|
||||||
Recognized
curtailment gain
|
(400,739
|
)
|
—
|
|||||
Net
periodic benefit (income) cost
|
$
|
(360,755
|
)
|
$
|
228,833
|
2005
|
2004
|
|||||||
Benefit
obligation at beginning of year
|
$
|
1,036,500
|
$
|
797,177
|
||||
Service
cost
|
43,249
|
88,865
|
||||||
Interest
cost
|
32,148
|
46,918
|
||||||
Plan
curtailment gain
|
(400,739
|
)
|
—
|
|||||
Plan
amendment
|
(576,581
|
)
|
—
|
|||||
Actuarial
loss (gain)
|
(99,975
|
)
|
130,284
|
|||||
Benefits
paid
|
(26,666
|
)
|
(26,744
|
)
|
||||
Benefit
obligation at end of year
|
7,936
|
1,036,500
|
||||||
Unrecognized
prior service costs
|
195,921
|
(358,402
|
)
|
|||||
Unrecognized
net gain
|
145,710
|
58,890
|
||||||
Accrued
post-retirement benefit costs
|
$
|
349,567
|
$
|
736,988
|
2005
|
2004
|
|||||||
Year-end
benefit obligation
|
5.50
|
%
|
5.75
|
%
|
||||
Net
periodic benefit cost
|
5.75
|
%
|
6.00
|
%
|
2005
|
2004
|
|||||||
Initial
trend rate
|
8.00
|
%
|
8.00
|
%
|
||||
Ultimate
trend rate
|
5.00
|
%
|
5.00
|
%
|
||||
Years
to ultimate trend rate
|
3
|
3
|
Increase
|
Decrease
|
|||||||
Effect
on total of service and interest cost components
|
$ |
11,687
|
|
$ |
(9,802
|
)
|
2005
|
2004
|
|||||||
Current:
|
||||||||
Federal
|
$
|
642,630
|
$
|
427,188
|
||||
State
(benefit)
|
61,549
|
(77,632
|
)
|
|||||
704,179
|
349,556
|
|||||||
Deferred:
|
||||||||
Federal
|
86,599
|
66,656
|
||||||
State
(benefit)
|
(49,658
|
)
|
14,034
|
|||||
36,941
|
80,690
|
|||||||
Income
taxes
|
$
|
741,120
|
$
|
430,246
|
2005
|
2004
|
|||||||
Income
taxes at the statutory rate
|
$
|
869,140
|
$
|
555,945
|
||||
State
income taxes, net of federal effect
|
4,895
|
(41,975
|
)
|
|||||
R&D
and other tax credits
|
(108,821
|
)
|
(61,230
|
)
|
||||
Net
operating loss carry forward realized
|
—
|
(61,985
|
)
|
|||||
Other
|
(24,094
|
)
|
39,491
|
|||||
Income
taxes
|
$
|
741,120
|
$
|
430,246
|
2005
|
2004
|
|||||||
Inventories
|
$
|
237,023
|
$
|
252,225
|
||||
Warranty
accrual
|
42,688
|
42,688
|
||||||
Allowance
for doubtful accounts
|
26,090
|
32,891
|
||||||
Tax
credits
|
74,440
|
40,284
|
||||||
Property
and equipment
|
79,281
|
87,002
|
||||||
Retirement
benefit obligation
|
122,313
|
257,872
|
||||||
Other
|
108,360
|
44,620
|
||||||
690,195
|
757,582
|
|||||||
Prepaid
expenses
|
(147,313
|
)
|
(121,305
|
)
|
||||
$
|
542,882
|
$
|
636,277
|
Plan
Category
|
Number
of securities to be issued upon exercise of outstanding options
and
warrants
|
Weighted-average
exercise price of outstanding options and warrants
|
Number
of securities remaining available for future issuance under equity
compensation plans
|
||||||||
Equity
compensation plans approved by security holders
|
803,575
|
$
|
1.73
|
466,750
|
|||||||
Equity
compensation plans not approved by security holders
|
1,486,500
|
0.53
|
|||||||||
Total
|
2,290,075
|
$
|
1.06
|
466,750
|
2.1
|
Stock
Purchase Agreement dated May 15, 2005 between CAS Medical Systems,
Inc.,
Statcorp, Inc., and the Stockholders of Statcorp Inc.
(1)
|
3.1
|
Certificate
of Incorporation of Registrant (2)
|
3.2
|
Amended
and Restated Bylaws of Registrant
(3)
|
10.1
|
Employment
Agreement dated September 1, 1993 between Louis P. Scheps and CAS
Medical
Systems, Inc. (4)
|
10.2
|
Amendment
Number One to Employment Agreement between Louis P. Scheps and CAS
Medical
Systems, Inc. (4)
|
10.3
|
Amendment
Number Two to Employment Agreement between Louis P. Scheps and CAS
Medical
Systems, Inc. (4)
|
10.4
|
Amendment
Number Three to Employment Agreement between Louis P. Scheps and
CAS
Medical Systems, Inc. (4)
|
10.5
|
Amendment
Number Four to Employment Agreement between Louis P. Scheps and CAS
Medical Systems, Inc. (3)
|
10.6
|
Amendment
Number Five to Employment Agreement between Louis P. Scheps and CAS
Medical Systems, Inc. (5)
|
10.7
|
Amendment
Number Six to Employment Agreement between Louis P. Scheps and CAS
Medical
Systems, Inc. (6)
|
10.8
|
1994
Employees’ Incentive Stock Option Plan
(7)
|
10.9
|
CAS
Medical Systems, Inc. Employee Stock Purchase Plan
(8)
|
10.10
|
CAS
Medical Systems, Inc. 2003 Equity Incentive Plan
(9)
|
10.11
|
Form
of Option Agreement (5)
|
10.12
|
Commercial
Line of Credit Note and Loan Agreement with NewAlliance Bank
(10)
|
10.13
|
Security
Agreement with NewAlliance Bank
(10)
|
10.14
|
Commercial
Loan and Security Agreement between CAS Medical Systems, Inc., NewAlliance
Bank and Statcorp Inc. (1)
|
10.15
|
Modification
to Agreement between CAS Medical Systems, Inc. and NewAlliance Bank.
(6)
|
21.1
|
Subsidiaries
of the Registrant
|
23.1
|
Consent
of UHY LLP, Independent Registered Public Accounting
Firm
|
31.1
|
Certification
of CEO Pursuant to Rule 13a-14
|
31.2
|
Certification
of CFO Pursuant to Rule 13a-14
|
32.1
|
Certification
of CEO and CFO Pursuant to 18 U.S.C.
1350
|
(1)
|
Incorporated
by reference to the Company’s Form 8-K/A filed July 29,
2005
|
(2)
|
Incorporated
by reference to the Company’s Registration Statement, dated April 15,
1985, filed with the Securities and Exchange
Commission
|
(3)
|
Incorporated
by reference to the Company’s Form 10-KSB filed March 29,
2004
|
(4)
|
Incorporated
by reference to the Company’s Form 10-KSB filed March 28,
2003
|
(5)
|
Incorporated
by reference to the Company’s Form 10-KSB filed March 31,
2005
|
(6)
|
Incorporated
by reference to the Company’s Form 10-QSB filed November 14,
2005
|
(7)
|
Incorporated
by reference to the Company’s Form S-8 filed October 4,
2000
|
(8)
|
Incorporated
by reference to the Company’s Form S-8 filed June 10,
2004
|
(9)
|
Incorporated
by reference to the Company’s Form S-8 filed June 10,
2004
|
(10)
|
Incorporated
by reference to the Company’s Form 10-QSB filed November 12,
2004
|
/s/ Louis P. Scheps | Date: March 23, 2006 | ||
By:
Louis P. Scheps
Chairman of the Board, President and
Chief
Executive Officer
|
/s/ Lawrence Burstein | Date: March 23, 2006 | ||
Lawrence
Burstein, Director
|
/s/ Jerome Baron | Date: March 23, 2006 | ||
Jerome
Baron, Director
|
/s/ Saul Milles | Date: March 23, 2006 | ||
Saul
Milles, Director
|
/s/ Louis P. Scheps | Date: March 23, 2006 | ||
Louis
P. Scheps, Chairman of the Board,
President,
Chief Executive Officer and Director
|
/s/ Jeffery A. Baird | Date: March 23, 2006 | ||
Jeffery
A. Baird, Chief Financial Officer
(Chief
Financial and Accounting Officer)
|