Three months ended Sep. 30 Nine months ended Sep. 30
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2003 2002 2003 2002
% of % of % of % of
Dollars Revenue Dollars Revenue Dollars Revenue Dollars Revenue
TOTAL SALES 1,199,507 100.0% 751,974 100.0% 7,750,111 100.0% 4,484,922 100.0%
COST OF SALES 48,717 4.1% 430,042 57.2% 5,276,591 68.1% 3,001,683 66.9%
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GROSS PROFIT 1,150,790 95.9% 321,932 42.8% 2,473,520 31.9% 1,483,239 33.1%
Operating expenses
Research and development 198,635 16.6% 183,718 24.4% 602,508 7.8% 534,324 11.9%
Selling general 73,691 6.1% 38,567 5.1% 210,346 2.7% 190,901 4.3%
Administrative expenses 308,327 25.7% 365,790 48.6% 836,011 10.8% 835,157 18.6%
Impairment of goodwill 0 0.0% 737,820 98.1% 0 0.0% 6,046,580 134.8%
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OPERATING INCOME/(LOSS) 570,137 47.5% (1,003,963) (133.5%) 824,655 10.6% (6,123,723) (136.5%)
Other income, net 1,768 0.1% 9,027 1.2% 15,710 0.2% 37,073 0.8%
Interest income 808 0.1% 454 0.1% 3,527 0.0% 3,218 0.1%
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INCOME/(LOSS) BEFORE TAX 572,713 47.7% (994,482) (132.2%) 843,892 10.9% (6,083,432) (135.6%)
Provision for income tax 10,140 0.8% 0 0.0% 71,664 0.9% 1,705 0.0%
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NET INCOME/(LOSS) 562,573 46.9% (994,482) (132.2%) 772,228 10.0% (6,085,137) (135.7%)
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