Massachusetts
|
3845
|
04-2795294
|
(State
or other jurisdiction of
incorporation
or organization)
|
(Primary
Standard Industrial
Classification
Code Number)
|
(I.R.S.
Employer
Identification
No.)
|
Title
of shares
to
be registered
|
|
Amount
to
be registered
(1)
|
|
Proposed maximum
offering
price
per
share
(2)
|
|
Proposed maximum
aggregate offering
price
(2)
|
|
Amount
of
registration
fee
(2)
|
Common
Stock - $0.01 Par Value
|
|
10,000,000
|
|
$0.45
|
|
$4,500,000
|
|
$138
|
Common
Stock - $0.01 Par Value - Shares Underlying Warrants
|
10,000,000
|
$0.45
|
$4,500,000
|
$138
|
||||
Total
|
|
|
|
|
|
|
$276
|
(1)
|
|
The
Registrant is hereby registering the disposition of 10,000,000 shares
of
its common stock and 10,000,000 shares of its common stock underlying
warrants issued to the selling stockholders pursuant to the terms
of the
Purchase Agreement dated as of February 1,
2007.
|
(2)
|
|
In
accordance with Rule 457(c), the price is estimated solely for purposes
of
calculating the registration fee and is based upon the average of
the bid
and asked price of the common stock as reported on the over-the-counter
bulletin board on March 15, 2007.
|
|
PAGE
|
THE
COMPANY
|
1 |
RISK
FACTORS
|
1 |
NOTE
REGARDING FORWARD-LOOKING STATEMENTS
|
4 |
USE
OF PROCEEDS
|
4 |
DETERMINATION
OF OFFERING PRICE
|
5 |
SELLING
STOCKHOLDERS
|
5 |
PLAN
OF DISTRIBUTION
|
5 |
LEGAL
MATTERS
|
7 |
DIRECTORS
AND EXECUTIVE OFFICERS
|
8 |
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
9 |
DESCRIPTION
OF SECURITIES
|
10 |
EXPERTS
|
11 |
COMMISSION
POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
|
11 |
BUSINESS
DEVELOPMENT
|
11 |
BUSINESS
OF ISSUER
|
11 |
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
16 |
DESCRIPTION
OF PROPERTY
|
20 |
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
|
21 |
MARKET
FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
|
21 |
EXECUTIVE
COMPENSATION
|
22 |
EQUITY
COMPENSATION PLAN INFORMATION
|
24 |
AVAILABLE
INFORMATION
|
24 |
INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS
|
F-1
|
PART
II - INFORMATION NOT REQUIRED IN PROSPECTUS
|
II-1
|
|
·
|
our
ability to successfully conceive and to develop new products and
services
to enhance the performance characteristics and methods of manufacture
of
existing products;
|
|
·
|
our
ability to retain existing customers and customers’ continued demand for
our products and services;
|
|
·
|
the
timing of our research and development expenditures and of new product
introductions;
|
|
·
|
the
timing and level of acceptance of new products or enhanced versions
of our
existing products; and
|
|
·
|
price
and volume fluctuations in the stock market at large which do not
relate
to our operating performance.
|
· |
the
costs of initial product production in connection with new
products
|
· |
the
timing of new product introductions -- both by us and by our
competitors
|
· |
the
timing and level of market acceptance of new products or enhanced
versions
of our existing products
|
· |
our
ability to retain existing customers and customers’ continued demand for
our products and services
|
· |
our
customers’ inventory levels, and levels of demand for our customers’
products and services
|
· |
competitive
pricing pressures
|
|
·
|
Control
the composition of our board of directors.
|
|
·
|
Determine
the outcome of significant corporate transactions, including changes
in
control that may be beneficial to shareholders.
|
|
·
|
Act
in each of their own interests, which may conflict, or be different
from,
the interests of each other or the interests of other shareholders.
|
Name
|
Common
Stock
Owned
Prior
to
the Offering
|
Common
Stock
Being
Offered
Pursuant
to
this
Prospectus*
|
Number
of Shares
of
Common Stock
Owned
Upon Completion
of
this Offering
|
Percentage
of
Shares
of Common
Stock
Owned Upon
Completion
of this Offering
|
Special
Situations Fund III QP, L.P. (a)
|
9,192,456
|
8,000,000
|
1,192,456
(c)
|
(c)
|
Special
Situations Private Equity Fund, L.P. (a)
|
8,000,000
|
8,000,000
|
--
|
--
|
Arnold
Schumsky
|
1,527,395
|
1,200,000
|
327,395
(c)
|
(c)
|
LaPlace
Group LLC
|
800,000
|
800,000
|
--
|
--
|
Joel
Pitlor (b)
|
4,214,419
|
2,000,000
|
2,214,419
(c)
|
(c)
|
* |
Includes
shares of common stock and shares underlying outstanding
warrants
|
(a) |
MGP
Advisors Limited (“MGP”) is the general partner of the Special Situations
Fund III, QP, L.P. AWM Investment
Company,
Inc. (“AWM”) is the general partner of MGP and the investment advisor to
the Special Situations Private Equity
Fund,
L.P. Austin W. Marxe and David M. Greenhouse are the principal
owners of
MGP and AWM. Through their control of
MGP
and AWM, Messrs. Marxe and Greenhouse share voting and investment
control
over the portfolio securities of each of the
funds
listed above. Mr. Marxe served as a director of the Company until
April 8,
2004.
|
(b) |
Mr.
Pitlor is a director of the
Company.
|
Name
|
|
Age
|
|
Director
Since
|
|
Director
Class
|
|
Principal
Occupation; Directorships of
Other
Public Companies
|
|
|
|
|
|
|
|
|
|
Richard
E. Forkey
|
|
66
|
|
1982
|
|
Class
I
|
|
President,
Chief Executive Officer, Treasurer and a director of the Company
since
founding the Company in 1982; Clerk of the Company from May 1983
to June
1990.
|
|
|
|
|
|
|
|
|
|
Edward
A. Benjamin
|
|
68
|
|
1990
|
|
Class
I
|
|
Clerk
of the Company from June 1990 to January 1998. Mr. Benjamin is a
Trustee
of the IXIS Advisor Funds, AEW Real Estate Income Fund, and Loomis
Sayles
Funds and a Director of Coal, Energy Investments & Management, LLC.
Mr. Benjamin was a partner in the law firm of Ropes & Gray LLP,
Boston, Massachusetts, from 1969 to 1998.
|
|
|
|
|
|
|
|
|
|
Joseph
N. Forkey (1)
|
|
39
|
|
2006
|
|
Class
III
|
|
Executive
Vice President and Chief Scientific Officer of the Company since
April
2006; Chief Scientist of the Company from September 2003 to April
2006.
Prior to joining the Company, Dr. Forkey spent seven years at the
University of Pennsylvania Medical School as a postdoctoral fellow
and
research staff member.
|
|
|
|
|
|
|
|
|
|
Donald
A. Major (2)
|
|
45
|
|
2005
|
|
Class
II
|
|
Since
October 2006, Mr. Major has served as Vice President of Corporate
Development of Advanced Duplication Services LLC. From 2002 to October
2006, Mr. Major was Vice President and Chief Financial Officer of
Digital
Excellence, LLC. From 1999 to 2001 Mr. Major served as Chief Financial
Officer and Clerk for Uroplasty, Inc.
|
|
|
|
|
|
|
|
|
|
Richard
Miles
|
|
63
|
|
2005
|
|
Class
III
|
|
Since
1972, Professor Miles has been a member of the faculty at Princeton
University, and serves as the Director of the Applied Physics Group
in
Princeton University’s Mechanical and Aerospace Engineering
Department.
|
|
|
|
|
|
|
|
|
|
Joel
R. Pitlor
|
|
68
|
|
1990
|
|
Class
II
|
|
Since
1979, Mr. Pitlor has been President of J.R. Pitlor, a management
consulting firm that provides strategic business planning, which
Mr.
Pitlor founded. Mr. Pitlor has provided business planning consultation
to
the Company since 1983.
|
Name
|
|
Age
|
|
Offices
|
|
|
|
|
|
Richard
E. Forkey
|
|
66
|
|
President,
Chief Executive Officer and Treasurer
|
|
|
|
|
|
Michael
T. Pieniazek
|
|
48
|
|
Vice
President, Chief Financial Officer and Clerk
|
|
|
|
|
|
Joseph
N. Forkey
|
|
39
|
|
Executive
Vice President and Chief Scientific
Officer
|
Name
and Address of Beneficial Owner
|
|
Amount
and Nature of
Beneficial
Ownership (1)
|
|
Percent
of Class (2)
|
|
|
|
|
|
AIGH
Investment Partners, LLC
6006
Berkeley Avenue, Baltimore, MD 21209
|
|
4,755,200
|
|
18.7%
|
|
|
|
|
|
Austin
W. Marxe and David M. Greenhouse
c/o
Special Situations Funds
527
Madison Avenue, Suite 2600, New York, NY 10022
|
|
17,886,887
(3)
|
|
53.5%
|
|
|
|
|
|
Arnold
Schumsky
145
East 27th Street
New
York, New York 10016
|
|
1,527,395
(4)
|
|
5.9%
|
|
|
|
|
|
Directors
and Named Executive Officers
|
|
|
|
|
|
|
|
|
|
Edward
A. Benjamin*
c/o
Precision Optics Corporation, Inc.
22
East Broadway, Gardner, MA 01440
|
|
54,440
(5)
|
|
**
|
|
|
|
|
|
Joseph
N. Forkey*
c/o
Precision Optics Corporation, Inc.
22
East Broadway, Gardner, MA 01440
|
|
265,360
(6)
|
|
1.0%
|
|
|
|
|
|
Richard
E. Forkey*
c/o
Precision Optics Corporation, Inc.
22
East Broadway, Gardner, MA 01440
|
|
520,858
(7)
|
|
2.0%
|
|
|
|
|
|
Donald
A. Major*
c/o
Precision Optics Corporation, Inc.
22
East Broadway, Gardner, MA 01440
|
|
130,000
(8)
|
|
**
|
|
|
|
|
|
Richard
Miles*
c/o
Precision Optics Corporation, Inc.
22
East Broadway, Gardner, MA 01440
|
|
120,000
(9)
|
|
**
|
|
|
|
|
|
Joel
R. Pitlor*
237
Moody Street, Waltham, MA 02453
|
|
4,243,797
(10)
|
|
16.0%
|
|
|
|
|
|
Michael
T. Pieniazek
c/o
Precision Optics Corporation, Inc.
22
East Broadway, Gardner, MA 01440
|
|
20,835
(11)
|
|
**
|
|
|
|
|
|
All
executive officers and directors as a group, including those named
above
(7 persons)
|
|
5,355,290
(12)
|
|
19.8%
|
(1)
|
|
Represents
shares with respect to which each beneficial owner listed has or
will
have, upon acquisition of such shares upon exercise or conversion
of
options, warrants, conversion privileges or other rights exercisable
within sixty days, sole voting and investment power.
|
|
|
|
(2)
|
|
Percentages
are calculated on the basis of the amount of outstanding common stock
plus, for each person or group, any securities that such person or
group
has the right to acquire within sixty days pursuant to options, warrants,
conversion privileges or other rights.
|
|
|
|
(3)
|
|
Holdings
as of February 28, 2007 as reported on Schedule 13D filed with the
SEC on
March 12, 2007 by
Messrs
.
Marxe and Greenhouse
.
Represents (i) 27,415 shares of common stock owned of record by Special
Situations Cayman Fund, L.P. (“SSCF”), (ii) 104,522 shares of common stock
owned of record by Special Situations Fund III, L.P. (“SSF III”), (iii)
5,192,456 shares of common stock owned of record by Special Situations
Fund III QP, L.P.(“SSF III QP”), (iv)
4,000,000
shares that may be acquired under an outstanding warrant held by
SSF III
QP, which is immediately exercisable,
(v)
4,000,000
shares of Common Stock owned of record by Special Situations Private
Equity Fund, L.P. (“SSPEF”), (vi) 4,000,000 shares that may be acquired
under an outstanding warrant held by SSPEF, which is immediately
exercisable, and (vii) 557,490 shares of common stock owned by Special
Situations Technology Fund II, L.P. (“SSTF II”). SSCF, SSF III, SSF III
QP, SSPEF and SSTF II are affiliated funds.
MGP
is the general partner of the SSF III QP and the general partner
of and
investment adviser to SSF III. AWM is the general partner of MGP,
the
general partner of and investment adviser to SSFCF and the investment
adviser to SSF III QP, SSCF, SSFTF II and SSPEF. Messrs
.
Marxe and Greenhouse are the principal owners of MGP and AWM. Through
their control of MGP and AWM, Messrs
.
Marxe and Greenhouse share voting and investment control over the
portfolio securities of each of the funds listed above. Also includes
5,004 shares
that
may be acquired
by
Mr. Marxe within sixty days upon the exercise of outstanding stock
options.
|
|
|
|
(4)
|
Includes
600,000 shares that may be acquired upon exercise of an outstanding
warrant, which is immediately exercisable.
|
|
(5)
|
|
Includes
34,171 shares which may be acquired within sixty days upon the exercise
of
outstanding stock options.
|
|
|
|
(6)
|
|
Represents
253,170 shares which may be acquired within sixty days upon the exercise
of outstanding stock options and 12,190 shares owned by Dr. Forkey
and his
wife, Heather C. Forkey, with whom he shares voting and investment
power.
|
|
|
|
(7)
|
|
Includes
205,480 shares which may be acquired within sixty days upon the exercise
of outstanding stock options.
|
|
|
|
(8)
|
|
Includes
30,000 shares which may be acquired within sixty days upon the exercise
of
outstanding stock options.
|
|
|
|
(9)
|
|
Includes
20,000 shares which may be acquired within sixty days upon the exercise
of
outstanding stock options.
|
|
|
|
(10)
|
|
Includes
29,378 shares which may be acquired within sixty days upon the exercise
of
outstanding stock options, and 1,000,000 shares that may be acquired
upon
exercise of an outstanding warrant, which is immediately
exercisable.
|
|
|
|
(11)
|
|
Represents
20,835 shares which may be acquired within sixty days upon the exercise
of
outstanding stock options.
|
|
|
|
(12)
|
|
Includes
593,034 shares which may be acquired within sixty days upon the exercise
of outstanding stock options and 1,000,000 shares that may be acquired
upon exercise of an outstanding warrant, which is immediately
exercisable.
|
|
2006
|
2005
|
|||||
Customer
A
|
18
|
%
|
20
|
%
|
|||
Customer
B
|
15
|
12
|
|||||
Customer
C
|
15
|
—
|
|||||
All
Others
|
52
|
68
|
|||||
|
100
|
%
|
100
|
%
|
|
2006
|
2005
|
|||||
Customer
A
|
29
|
18
|
|||||
Customer
B
|
15
|
15
|
|||||
All
Others
|
56
|
67
|
|||||
|
100
|
%
|
100
|
%
|
|
2006
|
2005
|
|||||
Customer
A
|
18
|
%
|
20
|
%
|
|||
Customer
B
|
15
|
12
|
|||||
Customer
C
|
15
|
—
|
|||||
All
Others
|
52
|
68
|
|||||
|
100
|
%
|
100
|
%
|
2007
|
2008
|
Thereafter
|
Total
|
||||||||||
Operating
leases
|
$
|
15,959
|
$
|
5,641
|
$
|
371
|
$
|
21,971
|
2005
|
2006
|
2007
|
|||||||||||||||||
Quarter
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|
||||||
First
|
|
$
|
1.33
|
|
$
|
0.82
|
|
$
|
0.90
|
|
$
|
0.45
|
|
$
|
0.49
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Second
|
|
$
|
1.50
|
|
$
|
0.61
|
|
$
|
0.80
|
|
$
|
0.20
|
|
$
|
0.49
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
$
|
1.75
|
|
$
|
0.88
|
|
$
|
0.50
|
|
$
|
0.20
|
|
$
|
0.48
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
$
|
1.36
|
|
$
|
0.52
|
|
$
|
0.71
|
|
$
|
0.32
|
|
$
|
--
|
|
$
|
--
|
|
|
|
Annual
Compensation
|
|
Long
Term Compensation
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Awards
|
|
Payouts
|
|
||||||
Name
and
Principal
Position
at
Fiscal Year End
|
|
|
Fiscal
Year
|
|
|
Salary
($)
|
|
|
Bonus
($)
|
|
|
Other
Annual
Compensation
($)
|
|
|
Securities
Underlying Options
(Number)
|
|
|
All
Other
Compensation
($)
|
|
Richard
E. Forkey
President,
Chief
Executive
Officer & Treasurer
|
|
|
2006
2005
2004
|
|
|
195,000
195,000
195,000
|
|
|
-0-
-0-
-0-
|
|
|
4,925(1)
12,250(1)
12,250(1)
|
|
|
373,600
373,600
-0-
|
|
|
19,757(2)
7,193(2)
6,692(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joseph
N. Forkey,
Executive
Vice
President
and Chief
Scientific
Officer
|
|
|
2006
2005
2004
|
|
|
120,000
120,000
91,381
|
|
|
-0-
-0-
10,000(3)
|
|
|
2,400(4)
2,221(4)
-0-
|
|
|
295,200(5)
560,400
15,000(5)
|
|
|
-0-
-0-
-0-
|
|
(1) |
Includes
car expense of $3,100 for 2006 and $9,250 for each of 2005 and
2004.
|
(2) |
Represents
premiums for a life insurance policy and a disability insurance
policy.
|
(3) |
Represents
a signing bonus paid to Dr. Forkey upon
hire.
|
(4) |
Represents
the Company’s matching contribution to Profit Sharing
Plan.
|
(5) |
15,000
options granted in September 2003 were repriced on May 9,
2006.
|
Name
|
|
|
Number
of Securities
Underlying
Options
Granted
|
|
|
Percent
of Total
Options
Granted to
Employees
in Fiscal Year
|
|
|
Exercise
Price
|
|
|
Expiration
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard
E. Forkey
|
|
|
373,600(1)
|
|
|
39%
|
|
|
$0.55
|
|
|
5/9/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joseph
N. Forkey
|
|
|
280,200(1)
|
|
|
29%
|
|
|
$0.55
|
|
|
5/9/2016
|
|
|
|
|
15,000(2)
|
|
|
n/a
|
|
|
$0.55
|
|
|
5/9/2016
|
|
(1)
|
25%
of such options are immediately exercisable; 25% of such options
will
become exercisable on May 9, 2007; 25% of such options will become
exercisable on May 9, 2008; and 25% of such options will become
exercisable on May 9, 2009.
|
Such
options were originally granted in September 2003, were repriced
on May 9,
2006 and became fully vested on September 27,
2006.
|
Fiscal
Year-End Option Values
|
|||||||||||||||||||
|
|
|
|
|
|
Unexercised
Options
at
Fiscal Year-End
|
|
Value
of Unexercised
In-the-Money
Options
at
Fiscal
Year-End ($)
|
|
||||||||||
Name
|
|
|
Shares
Acquired
on
Exercise
(Number)
|
|
|
Value
Realized
($)
|
|
|
Exercisable
(Number)
|
|
|
Unexercisable
(Number)
|
|
|
Exercisable
($)
|
|
|
Unexercisable
($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard
E. Forkey
|
|
|
-0-
|
|
|
-0-
|
|
|
205,480
|
|
|
541,720
|
|
|
-0-
|
|
|
-0-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joseph
N. Forkey
|
|
|
-0-
|
|
|
-0-
|
|
|
249,420
|
|
|
606,180
|
|
|
-0-
|
|
|
-0-
|
|
|
|
Number
of securities
to
be issued upon
exercise
of
outstanding
options,
warrants
and rights
|
|
Weighted-average
exercise
price of
outstanding
options,
warrants
and rights
|
|
Number
of securities remaining
available
for future issuance under
equity
compensation plans (excluding
securities
reflected in first column)
|
|
|||
|
|
|
|
|
|
|
|
|||
Equity
compensation
plans
approved by
shareholders
|
|
|
2,277,583
|
|
|
$0.66
|
|
|
712,438
(1
|
)
|
|
|
|
|
|
|
|
|
|||
Equity
compensation
plans
not approved
by
shareholders
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|||
Total
|
|
|
2,277,583
|
|
|
$0.66
|
|
|
712,438
(1
|
)
|
|
|
Page
|
|
|
|
Consolidated
Balance Sheets as of December 31, 2006 (unaudited)
and
June 30, 2006
|
|
F-2
|
|
|
|
Consolidated
Statements of Operations
for
the three and six months ended December 31, 2006 and 2005
(unaudited)
|
|
F-3
|
|
|
|
Consolidated
Statements of Cash Flows
for
the three and six months ended December 31, 2006 and 2005
(unaudited)
|
|
F-4
|
|
|
|
Consolidated
Financial Statements as of and for the years ended June 30, 2006
and 2005,
together
with Report of Independent Registered Public Accounting
Firm
|
|
F-12
|
|
|
December
31, 2006
|
|
June
30, 2006
|
|
||
|
|
|
|
|
|
||
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents
|
|
$
|
552,290
|
|
$
|
2,030,428
|
|
Accounts
Receivable, net
|
|
|
319,803
|
|
|
381,097
|
|
Inventories,
net
|
|
|
511,559
|
|
|
445,802
|
|
Prepaid
Expenses
|
|
|
105,734
|
|
|
45,912
|
|
Total
Current Assets
|
|
|
1,489,386
|
|
|
2,903,239
|
|
PROPERTY
AND EQUIPMENT
|
|
|
|
|
|
|
|
Machinery
and Equipment
|
|
|
3,516,860
|
|
|
3,513,736
|
|
Leasehold
Improvements
|
|
|
553,596
|
|
|
553,596
|
|
Furniture
and Fixtures
|
|
|
136,762
|
|
|
93,545
|
|
Vehicles
|
|
|
42,343
|
|
|
42,343
|
|
|
|
|
4,249,561
|
|
|
4,203,220
|
|
Less:
Accumulated Depreciation
|
|
|
(4,119,768
|
)
|
|
(4,127,287
|
)
|
Net
Property and Equipment
|
|
|
129,793
|
|
|
75,933
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
Cash
surrender value of life insurance policies
|
|
|
13,246
|
|
|
13,246
|
|
Patents,
net
|
|
|
277,903
|
|
|
236,115
|
|
Total
Other Assets
|
|
|
291,149
|
|
|
249,361
|
|
TOTAL
ASSETS
|
|
$
|
1,910,328
|
|
$
|
3,228,533
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Accounts
Payable
|
|
$
|
294,309
|
|
$
|
218,658
|
|
Accrued
Employee Compensation
|
|
|
237,505
|
|
|
227,892
|
|
Accrued
Professional Services
|
|
|
46,169
|
|
|
90,000
|
|
Accrued
Warranty Expense
|
|
|
50,000
|
|
|
50,000
|
|
Other
Accrued Liabilities
|
|
|
12
|
|
|
2,086
|
|
Total
Current Liabilities
|
|
|
627,995
|
|
|
588,636
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Common
Stock, $.01 par value-
Authorized
- 20,000,000 shares
Issued
and Outstanding - 15,458,212 shares
at
December 31, 2006 and at June 30,
2006
|
|
|
154,582
|
|
|
154,582
|
|
Additional
Paid-in Capital
|
|
|
34,823,671
|
|
|
34,729,873
|
|
Accumulated
Deficit
|
|
|
(33,695,920
|
)
|
|
(32,244,558
|
)
|
Total
Stockholders' Equity
|
|
|
1,282,333
|
|
|
2,639,897
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
$
|
1,910,328
|
|
$
|
3,228,533
|
|
|
|
Three
Months
Ended
December 31,
|
|
Six
Months
Ended
December 31,
|
|
||||||||
|
|
(As
reclassified. See Note 1.)
|
|
||||||||||
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
||||
REVENUES
|
|
$
|
470,811
|
|
$
|
519,950
|
|
$
|
898,436
|
|
$
|
930,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST
OF GOODS SOLD
|
|
|
316,437
|
|
|
403,101
|
|
|
699,897
|
|
|
837,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit / (Loss)
|
|
|
154,374
|
|
|
116,849
|
|
|
198,539
|
|
|
93,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESEARCH
and DEVELOPMENT EXPENSES, net
|
|
|
378,954
|
|
|
346,168
|
|
|
643,477
|
|
|
633,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING,
GENERAL and
ADMINISTRATIVE
EXPENSES
|
|
|
545,994
|
|
|
413,339
|
|
|
1,029,020
|
|
|
836,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN
ON SALE OF FIXED ASSETS
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(165,700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses
|
|
|
924,948
|
|
|
759,507
|
|
|
1,672,497
|
|
|
1,305,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss
|
|
|
(770,574
|
)
|
|
(642,658
|
)
|
|
(1,473,958
|
)
|
|
(1,211,675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
7,391
|
|
|
6,266
|
|
|
22,595
|
|
|
15,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(763,183
|
)
|
$
|
(636,392
|
)
|
$
|
(1,451,363
|
)
|
$
|
(1,196,263
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and Diluted Loss Per Share
|
|
$
|
(0.05
|
)
|
$
|
(0.09
|
)
|
$
|
(0.09
|
)
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Common Shares Outstanding -
Basic
and Diluted
|
|
|
15,458,212
|
|
|
7,008,212
|
|
|
15,458,212
|
|
|
7,008,212
|
|
|
|
Six Months
|
|
||||
|
|
Ended December 31,
|
|
||||
|
|
2006
|
|
2005
|
|
||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(1,451,363
|
)
|
$
|
(1,196,263
|
)
|
Adjustments
to Reconcile Net Loss to Net Cash
|
|
|
|
|
|
|
|
Used
In Operating Activities -
|
|
|
|
|
|
|
|
Depreciation
and Amortization
|
|
|
57,365
|
|
|
83,396
|
|
Gain
on Disposal of Asset
|
|
|
-
|
|
|
(165,700
|
)
|
Stock-based
compensation expense
|
|
|
109,259
|
|
|
-
|
|
Provision
for Inventory Write-Down
|
|
|
-
|
|
|
38,600
|
|
Changes
in Operating Assets and Liabilities-
|
|
|
|
|
|
|
|
Accounts
Receivable
|
|
|
61,294
|
|
|
(135,458
|
)
|
Inventories
|
|
|
(65,757
|
)
|
|
30,164
|
|
Prepaid
Expenses
|
|
|
(59,822
|
)
|
|
(20,503
|
)
|
Accounts
Payable
|
|
|
75,651
|
|
|
26,146
|
|
Other
Accrued Expenses
|
|
|
(36,292
|
)
|
|
(44,403
|
)
|
Net
Cash Used In Operating Activities
|
|
|
(1,309,665
|
)
|
|
(1,384,021
|
)
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases
of Property and Equipment
|
|
|
(83,304
|
)
|
|
(8,017
|
)
|
Proceeds
from Disposal of Asset
|
|
|
-
|
|
|
162,000
|
|
Increase
in Other Assets
|
|
|
(69,709
|
)
|
|
(32,203
|
)
|
Net
Cash Provided By (Used In) Investing Activities
|
|
|
(153,013
|
)
|
|
121,780
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Payment
of Offering Costs
|
|
|
(15,460
|
)
|
|
-
|
|
Net
Cash Used In Financing Activities
|
|
|
(15,460
|
)
|
|
-
|
|
NET
DECREASE IN CASH AND
CASH
EQUIVALENTS
|
|
|
(1,478,138
|
)
|
|
(1,262,241
|
)
|
CASH
AND CASH EQUIVALENTS AT BEGINNING
OF
PERIOD
|
|
|
2,030,428
|
|
|
2,171,693
|
|
CASH
AND CASH EQUIVALENTS AT END
OF
PERIOD
|
|
$
|
552,290
|
|
$
|
909,452
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW
|
|
|
|
|
|
|
|
INFORMATION:
|
|
|
|
|
|
|
|
Cash
Paid for-
|
|
|
|
|
|
|
|
Interest
|
|
$
|
-
|
|
$
|
-
|
|
Income
Taxes
|
|
$
|
912
|
|
$
|
912
|
|
1. |
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
|
Three
Months Ended
December
31, 2005
|
Six
Months Ended
December
31, 2005
|
||||||||||||
Currently
Reported
|
Before
Reclassification
|
Currently
Reported
|
Before
Reclassification
|
||||||||||
Revenues
|
$
|
519,950
|
$
|
529,195
|
$
|
930,382
|
$
|
948,777
|
|||||
Gross
Profit
|
$
|
116,849
|
$
|
42,072
|
$
|
93,355
|
$
|
(59,846
|
)
|
||||
Research
and Development Expenses
|
$
|
346,168
|
$
|
269,159
|
$
|
633,998
|
$
|
477,270
|
|||||
Total
Operating Expenses
|
$
|
759,507
|
$
|
684,730
|
$
|
1,305,030
|
$
|
1,151,829
|
Three
Months Ended
December
31, 2006
|
Six
Months Ended
December
31, 2006
|
||||||||||||
Currently
Reported
|
Before
Reclassification
|
Currently
Reported
|
Before
Reclassification
|
||||||||||
Revenues
|
$
|
470,811
|
$
|
489,911
|
$
|
898,436
|
$
|
964,065
|
|||||
Gross
Profit
|
$
|
154,374
|
$
|
98,708
|
$
|
198,539
|
$
|
86,938
|
|||||
Research
and Development Expenses
|
$
|
378,954
|
$
|
322,069
|
$
|
643,477
|
$
|
529,893
|
|||||
Total
Operating Expenses
|
$
|
924,948
|
$
|
869,282
|
$
|
1,672,497
|
$
|
1,560,896
|
2. |
INVENTORIES
|
|
|
December
31, 2006
|
|
June
30, 2006
|
|
||
|
|
|
|
|
|
||
Raw
Materials
|
|
$
|
264,969
|
|
$
|
251,725
|
|
|
|
|
|
|
|
|
|
Work-In-Progress
|
|
|
169,599
|
|
|
114,786
|
|
|
|
|
|
|
|
|
|
Finished
Goods
|
|
|
76,991
|
|
|
79,291
|
|
|
|
|
|
|
|
|
|
Total
Inventories
|
|
$
|
511,559
|
|
$
|
445,802
|
|
3. |
STOCK-BASED
COMPENSATION
|
OPTIONS
|
2007
|
2008
|
2009
|
2010
|
2011
|
TOT
AL
|
|||||||||||||
Compensation
Expense
|
$
|
85,578
|
$
|
104,234
|
$
|
84,720
|
$
|
21,805
|
$
|
21,805
|
$
|
318,142
|
|
|
Three
Months Ended
December
31, 2005
|
|
Six
Months Ended
December
31, 2005
|
|
||
Net
loss as reported
|
|
$
|
(636,392
|
)
|
$
|
(1,196,263
|
)
|
Add:
Employee compensation expense for share options included in reported
net
income, net of income taxes
|
|
|
-
|
|
|
-
|
|
Less:
Total employee compensation expense for share options determined
under the
fair value method, net of income taxes
|
|
|
(90,397
|
)
|
|
(197,679
|
)
|
Pro
forma net loss
|
|
$
|
(726,789
|
)
|
$
|
(1,393,942
|
)
|
Net
loss per share:
|
|
|
|
|
|
|
|
Basic
and diluted - as reported
|
|
$
|
(0.09
|
)
|
$
|
(0.17
|
)
|
Basic
and diluted - pro forma
|
|
$
|
(0.10
|
)
|
$
|
(0.20
|
)
|
|
|
Six Months Ended
|
|
||
|
|
December 31, 2006
|
|
December 31, 2005
|
|
Assumptions:
|
|
|
|
|
|
Option
life
|
|
5.3
years
|
|
5.3
years
|
|
Risk-free
interest rate
|
|
5.00%
|
|
4.07%
|
|
Stock
volatility
|
|
108%
|
|
107%
|
|
Dividend
yield
|
|
-0-
|
|
-0-
|
|
Weighted
average fair value of grants
|
|
$0.27
|
|
$0.37
|
|
Options Outstanding
|
||||||||||
Number of
Shares
|
Weighted Average
Exercise Price
|
Weighted Average
Contractual Life
|
||||||||
Outstanding
at June 30, 2006
|
2,277,583
|
$
|
0.66
|
|||||||
Grants
|
265,000
|
0.27
|
||||||||
Exercises
|
—
|
|
||||||||
Cancellations
|
(10,000
|
)
|
0.55
|
|||||||
Outstanding
at December 31, 2006
|
2,532,583
|
$
|
0.63
|
9.06
years
|
Range of Exercise Prices
|
Number of
Shares
|
Weighted-Average
Remaining
Contractual
Life (years)
|
Weighted-Average
Exercise Price
|
Exercisable
Number of
Shares
|
Exercisable
Weighted-Average
Exercise Price
|
|||||||||||
$0.25
|
165,000
|
9.76
|
$
|
0.25
|
60,835
|
$
|
0.25
|
|||||||||
$0.30
|
100,000
|
9.65
|
0.30
|
-
|
0.30
|
|||||||||||
$0.46
|
20,000
|
8.92
|
0.46
|
20,000
|
0.46
|
|||||||||||
$0.55
|
1,313,583
|
9.36
|
0.55
|
553,512
|
0.55
|
|||||||||||
$0.83
|
934,000
|
8.46
|
0.83
|
280,200
|
0.83
|
|||||||||||
$0.25-$0.83
|
2,532,583
|
9.06
|
$
|
0.61
|
914,547
|
$
|
0.63
|
5. |
Subsequent
Events
|
|
|
|
2006
|
|
|
2005
|
|
|
|
|
(As
reclassified. See Note 1.)
|
|
|||
Revenues
|
|
$
|
2,149,564
|
|
$
|
1,253,850
|
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
|
|
|
1,899,471
|
|
|
1,637,219
|
|
|
|
|
|
|
|
|
|
Gross
profit (loss)
|
|
|
250,093
|
|
|
(383,369
|
)
|
|
|
|
|
|
|
|
|
Research
and Development Expenses, net
|
|
|
1,105,967
|
|
|
1,407,810
|
|
|
|
|
|
|
|
|
|
Selling,
General and Administrative Expenses
|
|
|
1,617,721
|
|
|
1,857,332
|
|
|
|
|
|
|
|
|
|
Gain
on Sale of Fixed Assets
|
|
|
(165,700
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
Provision
for Restructuring
|
|
|
-
|
|
|
89,512
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
|
2,557,988
|
|
|
3,354,654
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(2,307,895
|
)
|
|
(3,738,023
|
)
|
|
|
|
|
|
|
|
|
Interest
Income, net
|
|
|
36,334
|
|
|
50,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
before provision for income taxes
|
|
|
(2,271,561
|
)
|
|
(3,687,449
|
)
|
|
|
|
|
|
|
|
|
Provision
for Income Taxes
|
|
|
912
|
|
|
912
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(2,272,473
|
)
|
$
|
(3,688,361
|
)
|
|
|
|
|
|
|
|
|
Loss
per Share - Basic and Diluted
|
|
|
($0.26
|
)
|
|
($0.55
|
)
|
|
|
|
|
|
|
|
|
Weighted
Average Common Shares Outstanding - Basic and Diluted
|
|
|
8,768,629
|
|
|
6,749,003
|
|
|
|
Number
of
Shares
|
|
|
Common
Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Accumulated
Deficit
|
|
|
Total
Stockholders’
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
June 30, 2004
|
|
|
1,752,053
|
|
$
|
17,521
|
|
$
|
27,770,175
|
|
$
|
(26,283,724
|
)
|
$
|
1,503,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from rights offering, net
|
|
|
5,256,159
|
|
|
52,561
|
|
|
4,981,423
|
|
|
-
|
|
|
5,033,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,688,361
|
)
|
|
(3,688,361
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
June 30, 2005
|
|
|
7,008,212
|
|
|
70,082
|
|
|
32,751,598
|
|
|
(29,972,085
|
)
|
|
2,849,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from private placement, net
|
|
|
8,450,000
|
|
|
84,500
|
|
|
1,978,275
|
|
|
-
|
|
|
2,062,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,272,473
|
)
|
|
(2,272,473
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
June 30, 2006
|
|
|
15,458,212
|
|
$
|
154,582
|
|
$
|
34,729,873
|
|
$
|
(32,244,558
|
)
|
$
|
2,639,897
|
|
|
|
2006
|
|
2005
|
|
||
|
|
|
|
|
|
|
|
Cash
Flows from Operating Activities:
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(2,272,473
|
)
|
$
|
(3,688,361
|
)
|
Adjustments
to reconcile net loss to net cash used in operating
activities-
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
130,110
|
|
|
241,966
|
|
Gain
on Sale of Fixed Assets
|
|
|
(165,700
|
)
|
|
-
|
|
Provision
for inventory write-down
|
|
|
32,000
|
|
|
401,900
|
|
Changes
in operating assets and liabilities-
|
|
|
|
|
|
|
|
Accounts
receivable, net
|
|
|
(204,066
|
)
|
|
(96,836
|
)
|
Inventories
|
|
|
121,817
|
|
|
(83,521
|
)
|
Prepaid
expenses
|
|
|
16,510
|
|
|
18,224
|
|
Accounts
payable
|
|
|
58,066
|
|
|
78,850
|
|
Customer
advances
|
|
|
(18,000
|
)
|
|
18,000
|
|
Accrued
expenses
|
|
|
29,559
|
|
|
(17,875
|
)
|
|
|
|
|
|
|
|
|
Net
cash used in operating activities
|
|
|
(2,272,177
|
)
|
|
(3,127,653
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows from Investing Activities:
|
|
|
|
|
|
|
|
Purchases
of property and equipment
|
|
|
(31,735
|
)
|
|
(32,140
|
)
|
Proceeds
from sale of fixed assets
|
|
|
180,000
|
|
|
-
|
|
Increase
in other assets
|
|
|
(80,128
|
)
|
|
(64,336
|
)
|
|
|
|
|
|
|
|
|
Net
cash used in investing activities
|
|
|
68,137
|
|
|
(96,476
|
)
|
|
|
|
|
|
|
|
|
Cash
Flows from Financing Activities:
|
|
|
|
|
|
|
|
Gross
proceeds from private placement
|
|
|
2,112,500
|
|
|
-
|
|
Gross
proceeds from rights offering
|
|
|
-
|
|
|
5,256,159
|
|
Payment
of offering costs
|
|
|
(49,725
|
)
|
|
(203,597
|
)
|
Net
cash provided in financing activities
|
|
|
2,062,775
|
|
|
5,052,562
|
|
|
|
|
|
|
|
|
|
Net
Increase (Decrease) in Cash and Cash Equivalents
|
|
|
(141,265
|
)
|
|
1,828,433
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, beginning of year
|
|
|
2,171,693
|
|
|
343,260
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, end of year
|
|
$
|
2,030,428
|
|
$
|
2,171,693
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
Cash
paid during the year for-
Income
taxes
|
|
$
|
912
|
|
$
|
912
|
|
|
|
|
2006
|
|
|
2005
|
|
Raw
material
|
|
$
|
251,725
|
|
$
|
181,548
|
|
Work-in-progress
|
|
|
114,786
|
|
|
185,047
|
|
Finished
goods
|
|
|
79,291
|
|
|
233,024
|
|
|
|
|
|
|
|
|
|
|
|
$
|
445,802
|
|
$
|
599,619
|
|
Asset
Classification
|
Estimated
Useful Life
|
Machinery
and equipment
|
2-7
years
|
Leasehold
improvements
|
Shorter
of lease term or estimated useful life
|
Furniture
and fixtures
|
5
years
|
Vehicles
|
3
years
|
|
|
2006
|
|
2005
|
|
||
Customer
A
|
|
|
18
|
%
|
|
20
|
%
|
Customer
B
|
|
|
15
|
|
|
12
|
|
Customer
C
|
|
|
15
|
|
|
-
|
|
All
Others
|
|
|
52
|
|
|
68
|
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
Year
Ended
|
|
|||
|
|
|
2006
|
|
|
2005
|
|
|
|
|
|
|
|
|
|
Net
loss, as reported
|
|
$
|
(2,272,473
|
)
|
$
|
(3,688,361
|
)
|
Add:
Total stock-based employee compensation expense determined under
fair
value based method for all awards
|
|
|
(377,430
|
)
|
|
(356,753
|
)
|
|
|
|
|
|
|
|
|
Pro
forma net loss
|
|
$
|
(2,649,903
|
)
|
$
|
(4,045,114
|
)
|
|
|
|
|
|
|
|
|
Net
loss per share:
As
reported - basic and diluted
|
|
$
|
(.26
|
)
|
$
|
(.55
|
)
|
|
|
|
|
|
|
|
|
Pro
forma - basic and diluted
|
|
$
|
(.30
|
)
|
$
|
(.60
|
)
|
Year
Ended
December
31, 2006
|
Year
Ended
December
31, 2005
|
||||||||||||
Currently
Reported
|
Previously
Reported
|
Currently
Reported
|
Previously
Reported
|
||||||||||
Revenues
|
$
|
2,149,564
|
$
|
2,284,693
|
$
|
1,253,850
|
$
|
1,349,819
|
|||||
Gross
Profit
|
$
|
250,093
|
$
|
4,062
|
$
|
(383,369
|
)
|
$
|
(647,767
|
)
|
|||
Research
and Development Expenses
|
$
|
1,105.967
|
$
|
859,936
|
$
|
1,407,810
|
$
|
1,143,412
|
|||||
Total
Operating Expenses
|
$
|
2,557,988
|
$
|
2,311,957
|
$
|
3,354,654
|
$
|
3,090,256
|
Options
Outstanding
|
Options
Exercisable
|
|||||||||||
Range
of
Exercise
Prices
|
Options
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Options
Exercisable
|
Weighted
Average
Exercise
Price
|
|||||||
$0.46
|
20,000
|
9.42
years
|
$0.46
|
|
20,000
|
$0.46
|
||||||
$0.55
|
1,323,583
|
9.87
years
|
$0.55
|
|
484,066
|
$0.55
|
||||||
$0.83
|
934,000
|
9.04
years
|
$0.83
|
|
280,200
|
$0.83
|
||||||
$0.46
- $0.83
|
2,277,583
|
9.86
years
|
$0.66
|
|
784,266
|
$
0.65
|
|
|
Number
of
Shares
|
|
|
Option
Price
per
Share
|
|
|
Weighted
Average
Exercise
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
outstanding and exercisable, June 30, 2004
|
|
|
9,168
|
|
$
|
7.78-8.25
|
|
$
|
8.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Canceled
|
|
|
(5,834
|
)
|
$
|
8.25
|
|
$
|
8.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
outstanding and exercisable, June 30, 2005
|
|
|
3,334
|
|
$
|
7.78
|
|
$
|
7.78
|
|
|
|
|
|
|
|
|
|
|
|
|
Expired
|
|
|
(3,334
|
)
|
$
|
7.78
|
|
$
|
7.78
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
outstanding and exercisable, June 30, 2006
|
|
|
0
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
||||
|
|
2006
|
|
2005
|
|
||
Risk-free
interest rates
|
|
|
5.0
|
%
|
|
3.84
|
%
|
Expected
dividend yield
|
|
|
-
|
|
|
-
|
|
Expected
lives
|
|
|
5.3
years
|
|
|
5.3
years
|
|
Expected
volatility
|
|
|
114
|
%
|
|
107
|
%
|
Weighted
average fair value of grants
|
|
$
|
0.65
|
|
$
|
0.65
|
|
|
|
2006
|
|
|
2005
|
|
Income
tax benefit at federal statutory rate
|
|
(34.0
|
)%
|
|
(34.0
|
)%
|
|
|
|
|
|
|
|
Increase
(decrease) in tax resulting from-
|
|
|
|
|
|
|
State
taxes, net of federal benefit
|
|
(6.0
|
)
|
|
(6.0
|
)
|
Change
in valuation allowance, net of NOL expirations
|
|
(587.9
|
)
|
|
27.9
|
|
Expiration
of state net operating loss carry forwards
|
|
-
|
|
|
11.6
|
|
Impact
of Change in Control Limitations
|
|
627.3
|
|
-
|
|
|
Nondeductible
items
|
|
0.6
|
|
|
2.3
|
|
Tax
credits
|
|
-
|
|
|
-
|
|
Other
|
|
-
|
|
|
(1.8
|
)
|
|
|
|
|
|
|
|
Effective
tax rate
|
|
0.0
|
%
|
|
0.0
|
%
|
|
|
2006
|
|
|
2005
|
|
Deferred
tax assets:
|
|
|
|
|
|
|
Net
operating loss carryforwards
|
$
|
343,000
|
|
$
|
9,746,000
|
|
Tax
credit carryforwards
|
|
-
|
|
|
567,000
|
|
Reserves
and accruals not yet deducted for tax purposes
|
|
18,000
|
|
|
3,870,000
|
|
Total
deferred tax assets
|
|
361,000
|
|
|
14,183,000
|
|
Valuation
allowance
|
|
(361,000
|
)
|
|
(12,972,000
|
)
|
Subtotal
|
|
0
|
|
|
1,211,000
|
|
Deferred
tax liabilities:
|
|
-
|
|
|
|
|
Accumulated
depreciation
|
|
|
|
|
(1,211,000
|
)
|
|
|
|
|
|
|
|
Net
deferred taxes
|
$
|
-
|
|
$
|
-
|
|
|
|
Reserve
For
Employee
Severance
|
|
|
|
|
|
|
|
Reserve
Balance, June 30, 2004
|
|
$
|
-
|
|
Total
Provision
|
|
|
89,512
|
|
Cash
Payments
|
|
|
(84,501
|
)
|
Reserve
Balance, June 30, 2005
|
|
|
5,011
|
|
Total
Provision
|
|
|
-
|
|
Cash
Payments
|
|
|
(5,011
|
)
|
|
|
|
|
|
Reserve
Balance, June 30, 2006
|
|
$
|
-
|
|
|
$
|
276
|
|
|
Printing
and engraving expenses
|
|
|
5,000
|
|
Accountant’s
fees and expenses
|
|
|
20,000
|
|
Legal
fees and expenses
|
|
|
40,000
|
|
Miscellaneous
expenses
|
|
|
1,724
|
|
|
|
|
|
|
Total
|
|
$
|
67,000
|
|
Exhibit
Number
|
|
Description
|
|
|
|
3.1
|
|
Articles
of Organization of Precision Optics Corporation, Inc., as amended
and
corrected. *
|
|
|
|
3.2
|
|
By-laws
of Precision Optics Corporation, Inc.(1)
|
|
|
|
4.1
|
|
Specimen
Common Stock Certificate. (2)
|
|
|
|
4.2
|
|
Registration
Rights Agreement dated as of February 1, 2007 by and among the Company,
Special Situations Fund III QP, L.P., Special Situations Private
Equity
Fund, L.P., LaPlace Group LLC, Joel Pitlor and Arnold Schumsky.
(3)
|
4.3
|
Form
of Warrant. (3)
|
|
5.1
|
|
Opinion
of Ropes & Gray LLP.*
|
|
|
|
10.1
|
|
Precision
Optics Corporation, Inc. 1989 Stock Option Plan amended to date.
(4)
|
|
|
|
10.2
|
|
Three
separate life insurance policies on the life of Richard E. Forkey.
(2)
|
|
|
|
10.3
|
|
Amended
and Restated Precision Optics Corporation, Inc. 1997 Incentive Plan.
(5)
|
|
|
|
10.4
|
|
Form
of Purchase Agreement. (6)
|
10.5
|
2006
Equity Incentive Plan. (7)
|
|
|
|
|
10.6
|
Purchase
Agreement dated as of February 1, 2007 by and among the Company,
Special
Situations Fund III QP, L.P., Special Situations Private Equity Fund,
L.P., LaPlace Group LLC, Joel Pitlor and Arnold Schumsky.
(3)
|
|
21.1
|
|
Subsidiaries
of Precision Optics Corporation, Inc. (8)
|
|
|
|
23.1
|
|
Consent
of Ropes & Gray LLP. (included in Opinion filed as Exhibit
5.1)*
|
|
|
|
23.2
|
|
Consent
of Vitale, Caturano & Company, Ltd.*
|
|
|
|
24.1
|
|
Power
of Attorney. (included on the signature page of this registration
statement)*
|
(1) |
Incorporated
herein by reference to the Company’s 1991 Annual Report on Form 10-KSB
(No. 001-10647).
|
(2) |
Incorporated
herein by reference to the Company’s Registration Statement on Form S-18
(No. 33-36710-B).
|
(3) |
Incorporated
herein by reference to the Company’s Current Report on Form 8-K filed on
February 2, 2007 (No. 001-10647).
|
(4) |
Incorporated
herein by reference to the Company’s 1994 Annual Report on Form 10-KSB
(No. 001-10647).
|
(5) |
Incorporated
herein by reference to the Company’s Current Report on Form 8-K filed on
November 30, 2004 (No. 001-10647).
|
(6) |
Incorporated
by reference from the Company’s Current Report on Form 8-K filed on April
19, 2006. (No. 001-10647).
|
(7) |
Incorporated
by reference from the Company’s Current Report on Form 8-K filed on
December 4, 2006 (No. 001-10647).
|
(8) |
Incorporated
herein by reference to the Company’s 1996 Annual Report on Form 10-KSB
(No. 001-10647).
|
Precision
Optics Corporation, Inc.
|
||
|
|
|
By: | /s/ Richard E. Forkey | |
Richard
E. Forkey
Chief
Executive Officer
|
||
Signature
|
Title
|
Date
|
|
|
|
|
|
/s/
Richard E. Forkey
|
Chairman
of the Board, Director, President, Treasurer
and
Chief Executive Officer (Principal Executive
Officer)
|
March
16,
2007
|
|
Richard
E. Forkey
|
|
|
|
|
|
|
|
/s/
Michael T. Pieniazek
|
Chief
Financial Officer and Clerk (Principal Financial
Officer
and Principal Accounting Officer)
|
March
16,
2007
|
|
Michael
T. Pieniazek
|
|
|
|
|
|
|
|
/s/
Joseph N. Forkey
|
Director,
Executive Vice President and Chief Scientific Officer
|
March
16,
2007
|
|
Joseph
N. Forkey
|
|
|
|
|
|
|
|
/s/
Edward A. Benjamin
|
Director
|
March
16, 2007
|
|
Edward
A. Benjamin
|
|
|
|
|
|
|
|
/s/
Donald A. Major
|
Director
|
March
16, 2007
|
|
Donald
A. Major
|
|
|
|
|
|
|
|
/s/
Richard Miles
|
Director
|
March
16, 2007
|
|
Richard
Miles
|
|
|
|
|
|
|
|
/s/
Joel R. Pitlor
|
Director
|
March
16, 2007
|
|
Joel
R. Pitlor
|
|
|
Exhibit
Number
|
|
Description
|
3.1
|
|
Articles
of Organization of Precision Optics Corporation, Inc., as amended
and
corrected. *
|
|
|
|
3.2
|
|
By-laws
of Precision Optics Corporation, Inc.(1)
|
|
|
|
4.1
|
|
Specimen
Common Stock Certificate.(2)
|
|
|
|
4.2
|
|
Registration
Rights Agreement dated as of February 1, 2007 by and among the Company,
Special Situations Fund III QP, L.P., Special Situations Private
Equity
Fund, L.P., LaPlace Group LLC, Joel Pitlor and Arnold
Schumsky.(3)
|
|
|
|
4.3
|
|
Form
of Warrant.(3)
|
|
||
5.1
|
|
Opinion
of Ropes & Gray LLP.*
|
|
|
|
10.1
|
|
Precision
Optics Corporation, Inc. 1989 Stock Option Plan amended to
date.(4)
|
|
|
|
10.2
|
|
Three
separate life insurance policies on the life of Richard E.
Forkey.(2)
|
|
|
|
10.3
|
|
Amended
and Restated Precision Optics Corporation, Inc. 1997 Incentive
Plan.(5)
|
|
|
|
10.4
|
|
Form
of Purchase Agreement.(6)
|
|
|
|
10.5
|
|
2006
Equity Incentive Plan.(7)
|
|
|
|
10.6
|
|
Purchase
Agreement dated as of February 1, 2007 by and among the Company,
Special
Situations Fund III QP, L.P., Special Situations Private Equity Fund,
L.P., LaPlace Group LLC, Joel Pitlor and Arnold
Schumsky.(3)
|
|
|
|
21.1
|
|
Subsidiaries
of Precision Optics Corporation, Inc.(8)
|
|
|
|
23.1
|
|
Consent
of Ropes & Gray LLP. (included in Opinion filed as Exhibit
5.1)*
|
|
|
|
23.2
|
|
Consent
of Vitale, Caturano & Company, Ltd.*
|
|
|
|
24.1
|
|
Power
of Attorney. (included on the signature page of this registration
statement)*
|
(1) |
Incorporated
herein by reference to the Company’s 1991 Annual Report on Form 10-KSB
(No. 001-10647).
|
(2) |
Incorporated
herein by reference to the Company’s Registration Statement on Form S-18
(No. 33-36710-B).
|
(3) |
Incorporated
herein by reference to the Company’s Current Report on Form 8-K filed on
February 2, 2007 (No. 001-10647).
|
(4) |
Incorporated
herein by reference to the Company’s 1994 Annual Report on Form 10-KSB
(No. 001-10647).
|
(5)
|
Incorporated
herein by reference to the Company’s Current Report on Form 8-K filed on
November 30, 2004 (No. 001-10647).
|
(6) |
Incorporated
by reference from the Company’s Current Report on Form 8-K filed on April
19, 2006. (No. 001-10647).
|
(7) |
Incorporated
by reference from the Company’s Current Report on Form 8-K filed on
December 4, 2006 (No. 001-10647).
|
(8) |
Incorporated
herein by reference to the Company’s 1996 Annual Report on Form 10-KSB
(No. 001-10647).
|
________
Examiner
|
The
Commonwealth of Massachusetts
OFFICE
OF THE MASSACHUSETTS SECRETARY OF STATE
MICHAEL
JOSEPH CONNOLLY, S
ecretary
ONE
ASHBURTON PLACE, BOSTON, MASS.
02108
ARTICLES
OF ORGANIZATION
(Under
G.L. Ch. 156B)
Incorporators
|
NAME
|
POST
OFFICE ADDRESS
|
Include
given name in full in case of natural persons; in case of a corporation,
give state of incorporation.
|
Richard
Forkey
|
125 East Road, Winchester, MA 01473 |
C
P
M
RA
|
o
o
o
o
|
Note:
If the space provided under any article or item on this form is
insufficient, additions shall be set forth on separate 8 1/2x11
sheets of paper leaving a left hand margin of at least 1 inch for
binding.
Additions to more than one article may be continued on a single
sheet so
long as each article requiring each such addition is clearly
indicated.
|
||
_________
P.C.
|
3.
|
The
total number of shares and the par value, if any, of each class
of stock
within the corporation is authorized as follows:
|
WITHOUT
PAR VALUE
|
WITH
PAR VALUE
|
|||
CLASS
OF STOCK
|
NUMBER
OF SHARES
|
NUMBER
OF SHARES
|
PAR
VALUE
|
AMOUNT
|
Preferred
|
$
|
|||
Common
|
100
|
*4.
|
If
more than one class is authorized, a description of each of the
different
classes of stock with, if any, the preferences, voting powers,
qualifications, special or relative rights or privileges as to
each class
thereof and any series now established:
|
*5.
|
The
restrictions, if any, imposed by the Articles of Organization upon
the
transfer of shares of stock of any class are as follows:
In
the event that any of the stockholders or legal representatives
desire to
sell their stock, they shall offer the stock to the corporation
for sale
at least thirty days prior to the actual sale to another party.
In the
event that the corporation does not buy the stock within that period
of
time, the stockholder will be free to sell the stock to any
person.
|
*6.
|
Other
lawful provisions, if any, for the conduct and regulation of the
business
and affairs of the corporation, for its voluntary dissolution,
or for
limiting, defining, or regulating the powers of the corporation,
or of its
directors or stockholders, or of any class of
stockholders:
|
|
|
7.
|
By-laws
of the corporation have been duly adopted and the initial directors,
president, treasurer and clerk, whose names are set out below,
have been
duly elected.
|
8.
|
The
effective date of organization of the corporation shall be the
date of
filing with the Secretary of the Commonwealth or if later date
is desired,
specify date, (not more than 30 days after the date of
filing.)
|
9.
|
The
following information shall not for any purpose be treated as a
permanent
part of the Articles of Organization of the
corporation:
|
a.
|
The
post office address
of
the
initial
principal office
of
the corporation of Massachusetts is:
|
125
East Road, Westminster, MA 01473
|
|
b.
|
The
name, residence, and post office address of each of the initial
directors
and following officers of the corporation are as
follows:
|
NAME
|
RESIDENCE
|
POST
OFFICE ADDRESS
|
|
President:
|
Richard
Forkey
|
125
East Road, Westminster, MA 01473
|
|
Treasurer:
|
Richard
Forkey
|
125
East Road, Westminster, MA 01473
|
|
Clerk:
|
Edward
J. Moloney
|
174
Central St., Lowell, MA 01852
|
|
Directors:
|
Richard
Forkey
|
125
East Road, Westminster, MA 01473
|
|
c.
|
The
date initially adopted on which the corporation’s fiscal year ends
is:
|
d.
|
The
date initially fixed in the by-laws for the annual meeting of stockholders
of the corporation is:
|
e.
|
The
name and business address of the resident agent, if any, of the
corporation is:
N/A
|
TO:
|
Edward
J. Moloney, Esquire
|
|
174
Central Street
|
||
Lowell,
MA 01852
|
||
|
||
Telephone:
|
458-6162
|
We,
|
Richard
E. Forkey
Richard
E. Forkey
|
,
President
and Clerk of
|
100
|
shares
of
|
Common
Stock
|
out
of
|
100
|
shares
outstanding,
|
(Class
of Stock)
|
|||||
shares
of
|
out
of
|
shares
outstanding,
|
|||
(Class
of Stock)
|
|||||
shares
of
|
out
of
|
shares
outstanding,
|
|||
(Class
of Stock)
|
KIND
OF STOCK
|
NO
PAR VALUE
NUMBER
OF SHARES
|
WITH
PAR VALUE
NUMBER
OF SHARES
|
PAR
VALUE
|
COMMON
|
100
|
||
PREFERRED
|
|||
KIND
OF STOCK
|
NO
PAR VALUE
NUMBER
OF SHARES
|
WITH
PAR VALUE
NUMBER
OF SHARES
|
PAR
VALUE
|
COMMON
|
200,000
|
$0.01
|
|
PREFERRED
|
|||
VOTED:
|
That
the Articles of Organization of the Corporation be and hereby are
amended
to change the 100 shares of Common Stock, no par value per share,
currently authorized, of which 100 shares are outstanding, into
100,000
shares of Common Stock, $0.01 per share, of which 100,000 shares
shall be
outstanding, and to increase the number of shares of Common Stock,
par
value $0.01 per share, that the Corporation is authorized to issue
to
200,000 shares.
|
26th
|
day
o
f
|
May
|
,
in the year 1989
|
/s/
Richard E. Forkey
|
President
|
I
hereby approve the within articles of amendment and, the filing
fee in the
amount of $
199.90
having been paid, said articles are deemed to have been filed with
me this
20th
,
day of
June
,
19
89
.
|
MICHAEL
JOSEPH CONNOLLY
|
Secretary
of State
|
TO
BE FILLED IN BY CORPORATION
|
PHOTO
COPY OF AMENDMENT TO BE SENT
|
TO:
|
Gregory
E. Moore,
Esquire
|
Ropes
&
Gray
|
One
International
Place
|
Boston,
Massachusetts
02110-2624
|
Telephone
|
(617)
951-7370
|
KIND
OF STOCK
|
NO
PAR VALUE
NUMBER
OF SHARES
|
WITH
PAR VALUE
NUMBER
OF SHARES
|
PAR
VALUE
|
COMMON
|
200,000
|
$.01
|
|
PREFERRED
|
|||
KIND
OF STOCK
|
NO
PAR VALUE
NUMBER
OF SHARES
|
WITH
PAR VALUE
NUMBER
OF SHARES
|
PAR
VALUE
|
COMMON
|
10,000,000
|
$.01
|
|
PREFERRED
|
|||
VOTED:
|
That
the Articles of Organization of the Corporation be and hereby
are amended
as follows: (a) under Article 2, to add to the Corporation's purposes
the following business activities: "To carry on any manufacturing,
merchantile, selling, management, service, or other business,
operation,
or activity which may be lawfully carried on by a corporation
organized
under the Business Corporation Law of The Commonwealth of Massachusetts,
whether or not related to those referred to in the foregoing
paragraph";
(b) under Article 3, to change the 200,000 shares of Common
Stock, par value $0.01 per share, currently authorized, of which
100,000
shares are outstanding, into 4,300,000 shares of Common Stock,
par value
$0.01 per share, of which 2,150,000 shall be outstanding, and
to increase
the number of shares of Common Stock, par value $0.01 per share,
that the
Corporation is authorized to issue to 10,000,000 shares; (c)
under
Article 5, to delete in their entirety the restrictions imposed upon
the transfer of shares of stock of any class of stock under Article 5
of the Articles of Organization; and (d) under Article 6, to add
to the Corporation's other lawful provisions the provisions enumerated
in
Exhibit B to this Consent;
(Exhibit
B Attached)
|
/s/
Richard E. Forkey
|
President
|
|
|
|
And
|
|
/s/
|
Clerk
|
TO
BE FILLED IN BY CORPORATION
|
|
PHOTO
COPY OF ARTICLES OF AMENDMENT TO BE SENT
|
|
|
|
TO:
|
Anne
E. Craige,
Esq.
|
Ropes
&
Gray
|
|
One
International
Place
|
|
Boston,
Massachusetts 02110
|
|
Telephone:
(617)
951-7000
|
(1)
|
such
contract, transaction, or act shall not be in any way invalidated
or
otherwise affected by that fact;
|
(2)
|
no
such director, officer, stockholder, or individual shall be
liable to
account to the corporation for any profit or benefit realized
through any
such contract, transaction, or act;
and
|
(3)
|
any
such director of the corporation may be counted in determining
the
existence of a quorum at any meeting of the directors or of
any committee
thereof which shall authorize any such contract, transaction,
or act, and
may vote to authorize the same;
|
A.
|
with
respect to the authorization or ratification of contracts,
transactions,
or acts in which any of the directors, officers, or stockholders
of the
corporation have an interest, the nature of such contracts,
transactions,
or acts and the interest of any director, officer, or stockholder
therein
shall be summarized in the notice of any such annual or special
meeting,
or in a statement or letter accompanying such notice, and shall
be fully
disclosed at any such meeting;
|
B.
|
the
stockholders so voting shall have made any findings required
by
law;
|
C.
|
the
stockholders so interested may vote at any such meeting except
to the
extent otherwise provided by law;
and
|
D.
|
any
failure of the stockholders to authorize or ratify such contract,
transaction, or act shall not be deemed in any way to invalidate
the same
or to deprive the corporation, its directors, officers or employees
of its
or their right to proceed with or enforce such contract, transaction,
or
act.
|
7,205,181
|
shares
of
|
Common
Stock
|
out
of
|
7,687,595
|
shares
outstanding,
|
(type,
class & series, if any)
|
|||||
shares
of
|
out
of
|
shares
outstanding,
|
|||
(type,
class & series, if any)
|
|||||
shares
of
|
out
of
|
shares
outstanding,
|
|||
(type,
class & series, if any)
|
WITHOUT
PAR VALUE STOCKS
|
WITH
PAR VALUE STOCKS
|
|||
TYPE
|
NUMBER
OF SHARES
|
TYPE
|
NUMBER
OF SHARES
|
PAR
VALUE
|
Common:
|
10,000,000
|
Common:
|
||
Preferred:
|
Preferred:
|
|||
WITHOUT
PAR VALUE STOCKS
|
WITH
PAR VALUE STOCKS
|
|||
TYPE
|
NUMBER
OF SHARES
|
TYPE
|
NUMBER
OF SHARES
|
PAR
VALUE
|
Common:
|
20,000,000
|
Common:
|
||
Preferred:
|
Preferred:
|
|||
1.
|
Exact
name of corporation:
|
PRECISION
OPTICS CORPORATION, INC.
|
2.
|
Document
to be corrected:
|
ARTICLES
OF AMENDMENT
|
3.
|
The
above mentioned document was filed with the Secretary of the Commonwealth
on November 22, 1999.
|
|
4.
|
Please
state the inaccuracy or defect in said document:
|
|
Said
Articles of Amendment were filed on behalf of the corporation changing
the
number of authorized shares of common stock from 10,000,000 shares,
no par
value to 20,000,000 shares, no par value. The 20,000,000 shares
of common
stock should have a par value of $0.01.
|
||
5.
|
Please
state corrected version of the document:
|
|
The
corporation is authorized to issue 20,000,000 shares of common
stock, with
par value of $0.01
|
James
Clair Devereaux
|
c/o
Ropes & Gray
|
One
International Place
|
Boston,
MA 02118
|
9,144,154
|
shares
of
|
Common
Stock
|
out
of
|
10,503,908
|
shares
outstanding,
|
(type,
class & series, if any)
|
|||||
shares
of
|
out
of
|
shares
outstanding,
|
|||
(type,
class & series, if any)
|
|||||
shares
of
|
out
of
|
shares
outstanding,
|
|||
(type,
class & series, if any)
|
WITHOUT
PAR VALUE STOCKS
|
WITH
PAR VALUE STOCKS
|
|||
TYPE
|
NUMBER
OF SHARES
|
TYPE
|
NUMBER
OF SHARES
|
PAR
VALUE
|
Common:
|
Common:
|
20,000,000
|
$.01
|
|
Preferred:
|
Preferred:
|
|||
WITHOUT
PAR VALUE STOCKS
|
WITH
PAR VALUE STOCKS
|
|||
TYPE
|
NUMBER
OF SHARES
|
TYPE
|
NUMBER
OF SHARES
|
PAR
VALUE
|
Common:
|
Common:
|
20,000,000
|
$.01
|
|
Preferred:
|
Preferred:
|
|||
|
|
Daniel
P. Ricciardi
|
Ropes
&
Gray
|
One
International Place
|
Boston,
MA 02110
Email:
dricciardi@ropesgray.com
|
FORM MUST BE TYPED | Articles of Amendment | FORM MUST BE TYPED |
□
|
the
incorporators.
|
□
|
the
board of directors without shareholder approval and shareholder
approval
was not required.
|
þ
|
the
board of directors and the shareholders in the manner required
by law and
the articles of organization.
|
WITHOUT
PAR VALUE
|
WITH
PAR VALUE
|
|||
TYPE
|
NUMBER
OF SHARES
|
TYPE
|
NUMBER
OF SHARES
|
PAR
VALUE
|
Common
|
20,000,000
|
$0.01
|
||
WITHOUT
PAR VALUE
|
WITH
PAR VALUE
|
|||
TYPE
|
NUMBER
OF SHARES
|
TYPE
|
NUMBER
OF SHARES
|
PAR
VALUE
|
Common
|
50,000,000
|
$0.01
|
||
þ
|
Chairman
of the board of directors,
|
þ
|
President,
|
□
|
Other
officer,
|
□
|
Court-appointed
fiduciary,
|
|
on
this
10th
day of
January
,
2007
.
|
_________________
Examiner
|
Precision
Optics Corporation, Inc.
|
|
|
_________________
Name
approval
|
22
East Broadway
|
|
|
_________________
C
|
Gardner,
Massachusetts 01440
|
|
|
_________________
M
|
Telephone:
978-630-1800
|
|
|
Email:
rforkey@poci.com
|
|
|
1.
|
The
Issued
Shares
have been duly authorized and are validly issued, fully paid and
non-assessable.
|
2.
|
The
Warrant Shares have been duly authorized, and when issued out of
the
Company’s duly authorized Common Stock upon exercise of, and pursuant to
the provisions of, the Warrants, and the Company has received the
consideration therefor in accordance with the terms of the Warrants,
the
Warrant Shares will be validly issued, fully paid and
non-assessable.
|
Precision
Optics Corporation, Inc.
|
-
2
-
|
March
16,
2007
|