PART
I.
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
Consolidated
Financial Statements (unaudited)
|
|
Consolidated
Balance Sheet as of June 30,
2007…..………….……..............................................................................................................................................
|
4
|
|
Consolidated
Statements of Operations for the three and six
months ended June 30, 2007 and
2006...................................................................................
|
5
|
|
Consolidated
Statements of Cash Flows for the six months
ended June 30, 2007 and 2006
...................................................................................................
|
6
|
|
Notes
to Consolidated Financial
Statements……………………………………………...............................................................................................................
|
7
|
|
Item
2.
|
14
|
|
Item
3.
|
Controls
and
Procedures……………………………………………………………………............................................................................................................
|
33
|
PART
II.
|
OTHER
INFORMATION
|
|
Item
1.
|
Legal
Proceedings.……………………………………………………………………………………..............................................................................................
|
33
|
Item
2.
|
Changes
in
Securities.…………………………………………………………………………………............................................................................................
|
34
|
Item
3.
|
Defaults
Upon Senior
Securities………………………………………………………………………............................................................................................
|
35
|
Item
4.
|
Submission
of Matters to a Vote of Securities
Holders………………………………………………….....................................................................................
|
35
|
Item
5.
|
Other
Information
………………………………………………………………………………........................................................................................................
|
35
|
Item
6.
|
Exhibits
and Reports on Form
8K……………………………………………………………………..............................................................................................
|
35
|
Signatures
|
36
|
ASSETS
|
||||
CURRENT
ASSETS:
|
||||
Cash
and cash equivalents
|
$ |
1,621,878
|
||
Accounts
receivable (net of allowance for doubtful accounts of
$145,830)
|
2,271,904
|
|||
Inventories
|
362,470
|
|||
Other
current assets
|
231,985
|
|||
Total
current assets
|
4,488,237
|
|||
PROPERTY
AND EQUIPMENT (net of accumulated depreciation of
$591,026)
|
1,773,876
|
|||
OTHER
ASSETS
|
251,190
|
|||
TOTAL
|
$ |
6,513,303
|
||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
CURRENT
LIABILITIES:
|
||||
Accounts
payable
|
$ |
949,296
|
||
Accrued
compensation
|
216,715
|
|||
Accrued
and other liabilities
|
244,297
|
|||
Short-term
portion of equipment leases
|
153,423
|
|||
Total
current liabilities
|
1,563,731
|
|||
LONG
TERM LIABILITIES -
|
||||
Long-term
portion of equipment leases
|
599,112
|
|||
TOTAL
LIABILITIES
|
2,162,843
|
|||
STOCKHOLDERS’
EQUITY:
|
||||
Common
stock, $.001 par value, 100,000,000 shares authorized;
|
||||
31,285,986
shares issued and outstanding
|
31,286
|
|||
Additional
paid-in capital
|
16,883,249
|
|||
Deferred
stock compensation
|
(220,969 | ) | ||
Accumulated
deficit
|
(12,343,106 | ) | ||
Total
stockholders’ equity
|
4,350,460
|
|||
TOTAL
|
$ |
6,513,303
|
||
For
the
Six-Months
Ended
June
30, 2007
|
For
the
Six-Months
Ended
June
30, 2006
|
For
the
Three-Months
Ended
June
30, 2007
|
For
the
Three-Months
Ended
June
30, 2006
|
|||||||||||||
REVENUE
|
$ |
4,586,694
|
$ |
3,111,292
|
$ |
2,344,032
|
$ |
1,767,492
|
||||||||
COST
OF REVENUE
|
2,102,546
|
1,302,614
|
1,165,813
|
725,816
|
||||||||||||
GROSS
PROFIT
|
2,484,148
|
1,808,678
|
1,178,219
|
1,041,676
|
||||||||||||
OTHER
OPERATING EXPENSES:
|
||||||||||||||||
Selling,
general and administrative
|
3,485,713
|
1,392,784
|
2,059,166
|
802,100
|
||||||||||||
Interest
expense-(net)
|
191,480
|
148,206
|
92,556
|
78,321
|
||||||||||||
Total
other operating expenses
|
3,677,193
|
1,540,990
|
2,151,722
|
880,421
|
||||||||||||
NET
INCOME (LOSS)
|
(1,193,045 | ) | $ |
267,688
|
$ | (973,503 | ) | $ |
161,255
|
|||||||
NET
INCOME (LOSS) PER SHARE - Basic
|
$ | (0.04 | ) | $ |
0.01
|
$ | (0.03 | ) | $ |
0.01
|
||||||
Diluted
|
$ | (0.04 | ) | $ |
0.01
|
$ | (0.03 | ) | $ |
0.01
|
||||||
WEIGHTED
AVERAGE NUMBER
OF
SHARES OUTSTANDING –
Basic
|
28,160,643
|
25,531,132
|
28,941,466
|
26,301,619
|
||||||||||||
Diluted
|
28,160,643
|
27,951,298
|
28,941,466
|
29,709,673
|
||||||||||||
For
the
Six-Months Ended
June
30, 2007
|
For
the
Six-Months
Ended
June
30, 2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income (loss)
|
$ | (1,193,045 | ) | $ |
267,688
|
|||
Adjustments
to reconcile net income (loss) to net cash used in operating
activities:
|
||||||||
Depreciation
|
180,455
|
93,629
|
||||||
Impairment
of fixed assets
|
2,235
|
-
|
||||||
Equity-based
compensation
|
140,240
|
20,114
|
||||||
Provision
for bad debts
|
278,000
|
143,058
|
||||||
Amortization
of debt issue costs
|
15,615
|
10,717
|
||||||
Amortization
of credit facility discounts
|
39,285
|
26,943
|
||||||
Amortization
of relocation expenses
|
15,450
|
23,316
|
||||||
Amortization
of lease cap costs
|
1,619
|
-
|
||||||
Amortization
of deferred stock compensation
|
84,608
|
3,563
|
||||||
Other
non-cash expenses
|
19,817
|
-
|
||||||
Changes
in assets and liabilities, net:
|
||||||||
Accounts
receivables, net of write-offs
|
(1,000,147 | ) | (624,633 | ) | ||||
Inventory
|
(245,108 | ) | (16,299 | ) | ||||
Pre-paid
expenses
|
(138,533 | ) | (46,472 | ) | ||||
Other
current assets
|
(6,729 | ) |
-
|
|||||
Deposits
|
(17,286 | ) | (11,907 | ) | ||||
Accounts
payable and other liabilities
|
255,703
|
(145,442 | ) | |||||
NET
CASH USED IN OPERATING ACTIVITIES
|
(1,767,821 | ) | (255,725 | ) | ||||
CASH
FLOWS USED IN INVESTING ACTIVITIES -
|
||||||||
Purchases
of property and equipment
|
(221,264 | ) | (233,528 | ) | ||||
Purchase
of convertible debenture
|
(200,000 | ) |
-
|
|||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(421,264 | ) | (233,528 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Advances
from (Repayments to) affiliates, net
|
(1,675,000 | ) |
100,000
|
|||||
Issuance
or (repayment) of notes payable
|
(2,000 | ) |
61,100
|
|||||
Repayment
of capital leases
|
(63,157 | ) | (5,134 | ) | ||||
Issuances
of common stock, net of transaction expenses
|
5,224,856
|
596,696
|
||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
3,484,699
|
752,662
|
||||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
1,495,614
|
263,409
|
||||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
126,264
|
10,944
|
||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ |
1,621,878
|
$ |
274,353
|
||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Interest
paid
|
$ |
163,282
|
$ |
106,627
|
||||
Income
taxes paid
|
$ |
-
|
$ |
-
|
||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
|
||||||||
Equipment
leased under capital lease
|
$ |
272,265
|
$ |
128,635
|
||||
Request
Date
|
Completion
Date
|
Shares
of Common Stock Issued/Sold
|
Gross
Proceeds Received
|
Cornell
Fee
|
Escrow
Fee
|
Net
Proceeds
|
ASP(1)
|
||||||||||||||||||
8/29/2005
|
9/8/2005
|
63,776
|
$ |
25,000
|
$ |
1,250
|
$ |
500
|
$ |
23,250
|
|||||||||||||||
12/10/2005
|
12/18/2005
|
241,779
|
50,000
|
2,500
|
500
|
47,000
|
|||||||||||||||||||
Subtotal
- 2005
|
305,555
|
$ |
75,000
|
$ |
3,750
|
$ |
1,000
|
$ |
70,250
|
$ |
0.25
|
||||||||||||||
7/19/2006
|
7/28/2006
|
83,491
|
53,000
|
2,500
|
500
|
50,000
|
|||||||||||||||||||
8/8/2006
|
8/16/2006
|
279,486
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
10/18/2006
|
10/23/2006
|
167,842
|
200,000
|
10,000
|
500
|
189,500
|
|||||||||||||||||||
Subtotal
- 2006
|
530,819
|
$ |
503,000
|
$ |
25,000
|
$ |
1,500
|
$ |
476,500
|
$ |
0.95
|
||||||||||||||
12/29/2006
|
1/10/2007
|
98,522
|
150,000
|
7,500
|
500
|
142,000
|
|||||||||||||||||||
1/16/2007
|
1/24/2007
|
100,053
|
150,000
|
7,500
|
500
|
142,000
|
|||||||||||||||||||
2/1/2007
|
2/12/2007
|
65,902
|
100,000
|
5,000
|
500
|
94,500
|
|||||||||||||||||||
2/19/2007
|
2/28/2007
|
166,611
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
2/28/2007
|
3/7/2007
|
180,963
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
4/5/2007
|
4/16/2007
|
164,777
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
4/20/2007
|
4/30/2007
|
173,467
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
Subtotal
- 2007
|
To
Date
|
950,295
|
$ |
1,400,000
|
$ |
70,000
|
$ |
3,500
|
$ |
1,326,500
|
$ |
1.48
|
|||||||||||||
Total
Drawn Since Inception
|
1,786,669
|
$ |
1,978,000
|
$ |
98,750
|
$ |
6,000
|
$ |
1,873,250
|
$ |
1.19
|
||||||||||||||
Total
Facility
|
$ |
5,000,000
|
|||||||||||||||||||||||
(1) Average
Selling Price of shares issued.
|
Monthly
|
Obligation
at
|
||||||||||||||||
Date
|
Type
|
Months
|
Cost
|
Payment
|
June
30, 2007
|
||||||||||||
Feb
2007
|
Computer
Hardware
|
36
|
$ |
3,544
|
$ |
122
|
$ |
2,994
|
|||||||||
Feb
2007
|
Computer
Hardware
|
36
|
6,244
|
219
|
5,472
|
||||||||||||
Feb
2007
|
Lab
Equipment
|
48
|
80,015
|
2,289
|
71,555
|
||||||||||||
Mar
2007
|
Lab
Equipment
|
60
|
135,655
|
2,746
|
130,070
|
||||||||||||
Mar
2007
|
Computer
Software
|
36
|
15,783
|
527
|
13,509
|
||||||||||||
April
2007
|
Computer
Hardware
|
36
|
11,204
|
354
|
9,399
|
||||||||||||
May
2007
|
Furniture
|
60
|
19,820
|
441
|
18,527
|
||||||||||||
Totals
|
|
$ |
272,265
|
$ |
6,698
|
$ |
251,526
|
|
b)
Fluorescence In-Situ Hybridization (“FISH”) testing, which analyzes
abnormalities at the chromosomal and gene
levels;
|
|
c)
flow cytometry testing, which analyzes gene expression of specific
markers
inside cells and on cell surfaces;
and
|
|
d)
molecular testing which involves analysis of DNA and RNA to diagnose
and
predict the clinical significance of various genetic sequence
disorders.
|
Attributes
|
Clinical
|
Anatomic
Pathology
|
Genetic/Molecular
|
Testing
Performed On
Testing
Volume
Physician
Involvement
Malpractice
Ins. Required
Other
Professionals Req.
Level
of Automation
Diagnostic
in Nature
Types
of Diseases Tested
Typical
per Price/Test
Estimated
Size of Market
Estimated
Annual Growth Rate
|
Blood,
Urine
High
Low
Low
None
High
Usually
Not
Many
Possible
$5
- $35/Test
$25
- $30 Billion
4%
-5%
|
Tissue/Cells
Low
High
- Pathologist
High
None
Low-Moderate
Yes
Primarily
to Rule out Cancer
$25
- $500/Test
$10
- $12 Billion
6%
– 7%
|
Chromosomes/Genes/DNA
Low
Low
- Medium
Low
Cyto/Molecular
geneticist
Moderate
Yes
Rapidly
Growing
$200
- $1,000/Test
$4
- $5 Billion (2)
25+%
|
Established
Competitors
|
Quest
Diagnostics
LabCorp
Bio
Reference Labs
DSI
Laboratories
Hospital
Labs
Regional
Labs
|
Quest
Diagnostics
LabCorp
Genzyme
Genetics
Ameripath
Local
Pathologists
|
Genzyme
Genetics
Quest
Diagnostics
LabCorp
Major
Universities
|
For
the
Six-Months
Ended
June
30, 2007
|
For
the
Six-Months
Ended
June
30, 2006
|
%
Inc (Dec)
|
For
the
Three-Months
Ended
June
30, 2007
|
For
the
Three-Months
Ended
June
30, 2006
|
%
Inc (Dec)
|
|||||||||||||||||||
Requisitions
Received (cases)
|
6,551
|
4,420
|
48.2 | % |
3,468
|
2,472
|
40.3 | % | ||||||||||||||||
Number
of Tests Performed
|
8,678
|
6,139
|
41.4 | % |
4,482
|
3,475
|
29.0 | % | ||||||||||||||||
Avg.
# of Tests / Requisition
|
1.32
|
1.39
|
(4.6 | )% |
1.29
|
1.41
|
(8.5 | )% | ||||||||||||||||
Total
Testing Revenue
|
$ |
4,586,694
|
$ |
3,111,293
|
47.4 | % | $ |
2,344,032
|
$ |
1,767,492
|
32.6 | % | ||||||||||||
Avg
Revenue/Requisition
|
$ |
700.15
|
$ |
703.91
|
(0.5 | )% | $ |
675.90
|
$ |
715.00
|
(5.5 | )% | ||||||||||||
Avg
Revenue/Test
|
$ |
528.54
|
$ |
506.81
|
4.3 | % | $ |
522.99
|
$ |
508.63
|
2.8 | % |
Cytogenetics
|
$ |
400-$500
|
||
Fluorescence
In Situ Hybridization (FISH)
|
||||
Technical
component
|
$ |
300-$1,000
|
||
Professional
component
|
$ |
200-$500
|
||
Flow
cytometry
|
||||
Technical
component
|
$ |
400-$700
|
||
Professional
component
|
$ |
100-$200
|
||
Morphology
|
$ |
400-$700
|
||
Total
|
$ |
1,800-$3,600
|
|
·
|
Revenue
Recognition
|
|
·
|
Accounts
Receivable
|
|
·
|
Increase
of approximately 84% in employee and benefit related
costs
|
|
·
|
Increase
of approximately 352% in facility
costs;
|
|
·
|
Increase
of approximately 64% in supply costs;
and
|
|
·
|
Increase
of approximately 157% in postage and delivery
costs.
|
|
·
|
Increase
of approximately 85% in employee labor and benefit related
costs
|
|
·
|
Increase
of approximately 404% in facility
costs;
|
|
·
|
Increase
of approximately 70% in supply costs;
and
|
|
·
|
Increase
of approximately 146% in postage and delivery
costs
|
Monthly
|
Obligation
at
|
||||||||||||||||
Date
|
Type
|
Months
|
Cost
|
Payment
|
June
30, 2007
|
||||||||||||
Feb
2007
|
Computer
Hardware
|
36
|
$ |
3,544
|
$ |
122
|
$ |
2,994
|
|||||||||
Feb
2007
|
Computer
Hardware
|
36
|
6,244
|
219
|
5,472
|
||||||||||||
Feb
2007
|
Lab
Equipment
|
48
|
80,015
|
2,289
|
71,555
|
||||||||||||
Mar
2007
|
Lab
Equipment
|
60
|
135,655
|
2,746
|
130,070
|
||||||||||||
Mar
2007
|
Computer
Software
|
36
|
15,783
|
527
|
13,509
|
||||||||||||
April
2007
|
Computer
Hardware
|
36
|
11,204
|
354
|
9,399
|
||||||||||||
May
2007
|
Furniture
|
60
|
19,820
|
441
|
18,527
|
||||||||||||
Totals
|
|
$ |
272,265
|
$ |
6,698
|
$ |
251,526
|
|
Legal
Contingency
|
Request
Date
|
Completion
Date
|
Shares
of Common Stock Issued/Sold
|
Gross
Proceeds Received
|
Cornell
Fee
|
Escrow
Fee
|
Net
Proceeds
|
ASP(1)
|
||||||||||||||||||
8/29/2005
|
9/8/2005
|
63,776
|
$ |
25,000
|
$ |
1,250
|
$ |
500
|
$ |
23,250
|
|||||||||||||||
12/10/2005
|
12/18/2005
|
241,779
|
50,000
|
2,500
|
500
|
47,000
|
|||||||||||||||||||
Subtotal
- 2005
|
305,555
|
$ |
75,000
|
$ |
3,750
|
$ |
1,000
|
$ |
70,250
|
$ |
0.25
|
||||||||||||||
7/19/2006
|
7/28/2006
|
83,491
|
53,000
|
2,500
|
500
|
50,000
|
|||||||||||||||||||
8/8/2006
|
8/16/2006
|
279,486
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
10/18/2006
|
10/23/2006
|
167,842
|
200,000
|
10,000
|
500
|
189,500
|
|||||||||||||||||||
Subtotal
- 2006
|
530,819
|
$ |
503,000
|
$ |
25,000
|
$ |
1,500
|
$ |
476,500
|
$ |
0.95
|
||||||||||||||
12/29/2006
|
1/10/2007
|
98,522
|
150,000
|
7,500
|
500
|
142,000
|
|||||||||||||||||||
1/16/2007
|
1/24/2007
|
100,053
|
150,000
|
7,500
|
500
|
142,000
|
|||||||||||||||||||
2/1/2007
|
2/12/2007
|
65,902
|
100,000
|
5,000
|
500
|
94,500
|
|||||||||||||||||||
2/19/2007
|
2/28/2007
|
166,611
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
2/28/2007
|
3/7/2007
|
180,963
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
4/5/2007
|
4/16/2007
|
164,777
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
4/20/2007
|
4/30/2007
|
173,467
|
250,000
|
12,500
|
500
|
237,000
|
|||||||||||||||||||
Subtotal
- 2007
|
To
Date
|
950,295
|
$ |
1,400,000
|
$ |
70,000
|
$ |
3,500
|
$ |
1,326,500
|
$ |
1.48
|
|||||||||||||
Total
Since Inception
|
1,786,669
|
$ |
1,978,000
|
$ |
98,750
|
$ |
6,000
|
$ |
1,873,250
|
$ |
1.19
|
||||||||||||||
Total
Facility
|
$ |
5,000,000
|
|||||||||||||||||||||||
(1) Average
Selling Price of shares issued.
|
|||||||||||||||||||||||||
EXHIBIT
NO.
|
DESCRIPTION
|
FILING
REFERENCE
|
3.1
|
Articles
of Incorporation, as amended
|
(i)
|
3.2
|
Amendment
to Articles of Incorporation filed with the Nevada Secretary of
State on
January 3, 2003.
|
(ii)
|
3.3
|
Amendment
to Articles of Incorporation filed with the Nevada Secretary of
State on
April 11, 2003.
|
(ii)
|
3.4
|
Amended
and Restated Bylaws, dated April 15, 2003.
|
(ii)
|
10.1
|
Amended
and Restated Loan Agreement between NeoGenomics, Inc. and Aspen
Select
Healthcare, L.P., dated March 30, 2006
|
(iii)
|
10.2
|
Amended
and Restated Registration Rights Agreement between NeoGenomics,
Inc. and
Aspen Select Healthcare, L.P. and individuals dated March 23,
2005
|
(iv)
|
10.3
|
Guaranty
of NeoGenomics, Inc., dated March 23, 2005
|
(iv)
|
10.4
|
Stock
Pledge Agreement between NeoGenomics, Inc. and Aspen Select Healthcare,
L.P., dated March 23, 2005
|
(iv)
|
10.5
|
Warrants
issued to Aspen Select Healthcare, L.P., dated March 23,
2005
|
(iv)
|
10.6
|
Securities
Equity Distribution Agreement with Cornell Capital Partners, L.P.
dated
June 6, 2005
|
(iv)
|
10.7
|
Employment
Agreement, dated December 14, 2005, between Mr. Robert P. Gasparini
and
the Company
|
(v)
|
10.8
|
Standby
Equity Distribution Agreement with Cornell Capital Partners, L.P.
dated
June 6, 2005
|
(vi)
|
10.9
|
Registration
Rights Agreement with Cornell Capital partners, L.P. related to
the
Standby Equity Distribution dated June 6, 2005
|
(vi)
|
10.10
|
Placement
Agent with Spartan Securities Group, Ltd., related to the Standby
Equity
Distribution dated June 6, 2005
|
(vi)
|
10.11
|
Amended
and restated Loan Agreement between NeoGenomics, Inc. and Aspen
Select
Healthcare, L.P., dated March 30, 2006
|
(iii)
|
10.12
|
Amended
and Restated Warrant Agreement between NeoGenomics, Inc. and Aspen
Select
Healthcare, L.P., dated January 21, 2006
|
(iii)
|
10.13
|
Amended
and Restated Security Agreement between NeoGenomics, Inc. and Aspen
Select
Healthcare, L.P., dated March 30, 2006
|
(iii)
|
10.14
|
Registration
Rights Agreement between NeoGenomics, Inc. and Aspen Select Healthcare,
L.P., dated March 30, 2006
|
(iii)
|
10.15
|
Warrant
Agreement between NeoGenomics, Inc. and SKL Family Limited Partnership,
L.P. issued January 23, 2006
|
(iii)
|
10.16
|
Warrant
Agreement between NeoGenomics, Inc. and Aspen Select Healthcare,
L.P.
issued March 14, 2006
|
(iii)
|
10.17
|
Warrant
Agreement between NeoGenomics, Inc. and Aspen Select Healthcare,
L.P.
issued March 30, 2006
|
(iii)
|
10.18
|
Agreement
with Power3 Medical Products, Inc regarding the Formation of Joint
Venture
& Issuance of Convertible Debenture and Related
Securities
|
(vii)
|
10.19
|
Securities
Purchase Agreement by and between NeoGenomics, Inc. and Power3
Medical Products, Inc.
|
(viii)
|
10.20
|
Power3
Medical Products, Inc. Convertible Debenture
|
(viii)
|
10.21
|
Agreement
between NeoGenomics and Noble International Investments,
Inc.
|
(xiv)
|
10.22
|
Subscription
Document
|
(xiv)
|
10.23
|
Investor
Registration Rights Agreement
|
(xiv)
|
31.1
|
Certification
by Principal Executive Officer pursuant to 15 U.S.C. Section 7241, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
(viii)
|
31.2
|
Certification
by Principal Financial Officer pursuant to 15 U.S.C. Section 7241, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
(viii)
|
31.3
|
Certification
by Principal Accounting Officer pursuant to 15 U.S.C. Section 7241,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
(viii)
|
32.1
|
Certification
by Principal Executive Office, Principal Financial Officer and
Principal
Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
(viii)
|
Footnotes
|
||
(i)
|
Incorporated
by reference to the Company’s Registration Statement on Form SB-2, filed
February 10, 1999.
|
|
(ii)
|
Incorporated
by reference to the Company’s Annual Report on Form 10-KSB for the year
ended December 31, 2002, filed May 20, 2003.
|
|
(iii)
|
Incorporated
by reference to the Company’s Annual Report on Form 10-KSB for the year
ended December 31, 2005, filed April 3, 2006.
|
|
(iv)
|
Incorporated
by reference to the Company’s Report on Form 8-K, filed March 30,
2005.
|
|
(v)
|
Incorporated
by reference to the Company’s Annual Report on Form 10-KSB for the year
ended December 31, 2004, filed April 15, 2005.
|
|
(vi)
|
Incorporated
by reference to the Company’s Report on Form 8-K for the SEC filed June 8,
2005.
|
|
(vii)
|
Incorporated
by reference to the Company’s Annual Report on Form 10-KSB for the year
ended December 31, 2006, filed April 2, 2007.
|
|
(viii)
|
Incorporated
by reference to the Company’s Quarterly Report on Form 10-KSB for the
quarter ended March 31, 2007, filed May 15, 2007.
|
|
(xiv)
|
Incorporated
by reference to the Company’s Registration statement on Form SB-2 filed
July 6, 2007.
|
Date: August
17, 2007
|
______/s/
Robert P. Gasparini_____
|
Date: August
17, 2007
|
______/s/
Steven C. Jones_____
|
Date: August
17, 2007
|
______/s/
Jerome J. Dvonch_____
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision,
to ensure that material information relating to the small business
issuer,
including its consolidated subsidiaries, is made known to us by
others
within those entities, particularly during the period in which
this report
is being prepared;
|
|
(b)
|
Omitted;
|
|
(c)
|
Evaluated
the effectiveness of the small business issuer’s disclosure controls and
procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of
the end of
the period covered by this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the small business issuer’s internal control
over financial reporting that occurred during the small business
issuer’s
most recent fiscal quarter (the small business issuer’s fourth fiscal
quarter in the case of an annual report) that has materially affected,
or
is reasonably likely to materially affect, the small business issuer’s
internal control over financial reporting;
and
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design
or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the small business issuer’s ability
to record, process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the small business issuer’s
internal control over financial reporting.
|
Date: August
17,
2007
|
By: /s/
Robert P. Gasparini
|
Name: Robert
P. Gasparini
|
|
Title: President
and Principal Executive Officer
|
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision,
to ensure that material information relating to the small business
issuer,
including its consolidated subsidiaries, is made known to us by
others
within those entities, particularly during the period in which
this report
is being prepared;
|
|
(b)
|
Omitted;
|
|
(c)
|
Evaluated
the effectiveness of the small business issuer’s disclosure controls and
procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of
the end of
the period covered by this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the small business issuer’s internal control
over financial reporting that occurred during the small business
issuer’s
most recent fiscal quarter (the small business issuer’s fourth fiscal
quarter in the case of an annual report) that has materially affected,
or
is reasonably likely to materially affect, the small business issuer’s
internal control over financial reporting;
and
|