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(in thousands, except per share amounts)
(unaudited)
Three months ended Year ended
December 31, December 31,
2007 2006 2007 2006
Net revenues $2,767 $3,664 $12,059 $17,117
Cost of revenues 1,036 916 2,949 3,644
Gross profit 1,731 2,748 9,110 13,473
Operating expenses:
Research and development 69 374 681 1,474
Salaries and employee benefits 1,199 1,470 4,800 7,784
Sales, general and administrative 495 1,851 2,773 5,691
Total operating expenses 1,763 3,695 8,254 14,949
Operating (loss) income (32) (947) 856 (1,476)
Other (expense) income:
Interest expense (10) (57) (69) (781)
Interest income 26 22 120 132
Gain on insurance settlement - - - 70
Loss on disposal of fixed assets (2) (111) (2) (111)
Non-cash interest expense - (29) (89) (831)
Change in fair value of derivatives
and warrants (53) 629 (225) 1,020
Total other (expense) income, net (39) 454 (265) (501)
(Loss) Income before income taxes (71) (493) 591 (1,977)
Tax provision 13 - 13 2
Net (loss) income (84) (493) $578 $(1,979)
Net (loss) income per share:
Basic $0.00 $(0.01) $0.01 $(0.04
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