x
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Quarterly
Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.
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o
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Transition
Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.
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Delaware
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25-1370721
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(State
or other jurisdiction of
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(I.R.S.
Employer
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Incorporation
or organization)
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Identification
No.)
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Large
accelerated filer
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o
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Accelerated
filer
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o
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Non-accelerated
filer
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o (Do
not check if smaller reporting company)
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Smaller
reporting company
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x
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Page
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Number
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Part
I –
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Financial
Information
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Item
1.
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Financial
Statements
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||
Consolidated
Statement of Operations -
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3
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Three
and nine months ended March 31,
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|||
2010
and 2009 (Unaudited)
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|||
Consolidated
Balance Sheet -
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4 -
5
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March
31, 2010 (Unaudited) and
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|||
June
30, 2009
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|||
Consolidated
Statement of Cash Flows -
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6
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Nine
months ended March 31, 2010 and 2009
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|||
(Unaudited)
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Notes
to Consolidated Financial Statements
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7 –
11
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Item
2.
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Management’s
Discussion and Analysis of
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11
– 15
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Financial
Condition and Results of Operations
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Item
3.
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Quantitative
and Qualitative Disclosure
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16
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about
Market Risk
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Item
4T.
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Controls
and Procedures
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16
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Part
II -
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Other
Information
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Item
6.
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Exhibits
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16
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Signature
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18
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Three months ended
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Nine months ended
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|||||||||||||||
March 31,
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March 31,
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|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Net
sales
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$ | 11,627,418 | $ | 12,389,640 | $ | 34,366,002 | $ | 39,361,993 | ||||||||
Cost
of sales
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8,781,739 | 9,915,884 | 26,172,709 | 30,677,586 | ||||||||||||
Gross
profit
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2,845,679 | 2,473,756 | 8,193,293 | 8,684,407 | ||||||||||||
Selling,
general and administrative expenses
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2,705,644 | 3,198,135 | 9,197,535 | 9,782,064 | ||||||||||||
Income
(loss) from operations
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140,035 | (724,379 | ) | (1,004,242 | ) | (1,097,657 | ) | |||||||||
Interest
income
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(2,956 | ) | (5,041 | ) | (4,403 | ) | (54,155 | ) | ||||||||
Interest
expense
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190 | - | 2,764 | 5,849 | ||||||||||||
Other,
net
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80,791 | 13,403 | 103,588 | 36,583 | ||||||||||||
78,025 | 8,362 | 101,949 | (11,723 | ) | ||||||||||||
Income
(loss) before provision for (benefit from) income taxes
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62,010 | (732,741 | ) | (1,106,191 | ) | (1,085,934 | ) | |||||||||
Provision
for (benefit from) income taxes
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24,480 | (282,469 | ) | (420,353 | ) | (407,925 | ) | |||||||||
Net
income (loss)
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$ | 37,530 | $ | (450,272 | ) | $ | (685,838 | ) | $ | (678,009 | ) | |||||
Basic
earnings (loss) per share
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$ | 0.00 | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.09 | ) | |||||
Diluted
earnings (loss) per share
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$ | 0.00 | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.09 | ) | |||||
Weighted
average shares outstanding - basic
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8,093,386 | 7,901,327 | 8,057,890 | 7,897,937 | ||||||||||||
Weighted
average shares outstanding - diluted
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8,183,907 | 7,901,327 | 8,057,890 | 7,897,937 |
(Unaudited)
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||||||||
March
31,
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June
30,
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|||||||
2010
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2009
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Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 3,273,496 | $ | 1,943,364 | ||||
Accounts
receivable, net of allowances of $300,000
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5,371,848 | 6,172,437 | ||||||
Inventories,
net
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11,968,396 | 12,663,938 | ||||||
Income
tax receivable
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1,634,370 | 937,273 | ||||||
Other
current assets
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270,340 | 327,203 | ||||||
Total
current assets
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22,518,450 | 22,044,215 | ||||||
Property,
plant and equipment, net
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10,040,867 | 10,799,089 | ||||||
Other
assets, net
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186,069 | 390,627 | ||||||
Total
assets
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$ | 32,745,386 | $ | 33,233,931 |
(Unaudited)
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||||||||
March
31,
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June
30,
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|||||||
2010
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2009
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Current
liabilities:
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||||||||
Accounts
payable
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$ | 2,140,610 | $ | 1,633,568 | ||||
Other
accrued liabilities
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2,055,459 | 2,316,558 | ||||||
Deferred
income taxes
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164,125 | 419,213 | ||||||
Deferred
revenue
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688,200 | 688,200 | ||||||
Total
current liabilities
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5,048,394 | 5,057,539 | ||||||
Deferred
revenue
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974,950 | 1,491,100 | ||||||
Commitments
and contingencies
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||||||||
Stockholders'
equity:
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||||||||
Preferred
stock; $0.01 par value; 1,500,000 shares
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||||||||
authorized;
no shares issued and outstanding
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- | - | ||||||
Series
A preferred stock; $0.01 par value; 200,000 shares
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||||||||
authorized;
no shares issued and outstanding
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- | - | ||||||
Common
stock; $0.01 par value; 30,000,000 shares
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||||||||
authorized;
10,396,878 and 10,204,819 shares issued
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||||||||
at
March 31, 2010 and June 30, 2009, respectively;
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8,093,386
and 7,901,327 shares outstanding at
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||||||||
March
31, 2009 and June 30, 2009, respectively
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103,969 | 102,048 | ||||||
Additional
paid-in capital
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48,352,716 | 47,632,049 | ||||||
Accumulated
deficit
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(1,003,215 | ) | (317,377 | ) | ||||
Less
treasury stock, at cost; 2,303,492 shares at
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||||||||
March
31, 2010 and June 30, 2009
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(20,731,428 | ) | (20,731,428 | ) | ||||
Total
stockholders' equity
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26,722,042 | 26,685,292 | ||||||
Total
liabilities and stockholders' equity
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$ | 32,745,386 | $ | 33,233,931 |
Nine months ended
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||||||||
March 31,
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||||||||
2010
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2009
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Cash
flows from operating activities:
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Net
loss
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$ | (685,838 | ) | $ | (678,009 | ) | ||
Adjustments
to reconcile net loss to net
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||||||||
cash
provided by (used in) operating activities:
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||||||||
Depreciation
and amortization
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948,607 | 1,074,119 | ||||||
Stock
based compensation
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637,720 | 17,392 | ||||||
Provision
for doubtful accounts and sales
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||||||||
returns
and allowances
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(9,832 | ) | 2,886 | |||||
Deferred
taxes
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(59,713 | ) | 14,223 | |||||
Loss
on disposition of equipment
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67,848 | 3,056 | ||||||
Changes
in operating assets and liabilities:
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||||||||
Accounts
receivable
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810,421 | 680,519 | ||||||
Inventories
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695,542 | (1,611,991 | ) | |||||
Income
tax receivable
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(697,097 | ) | - | |||||
Other
current assets
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56,863 | (59,655 | ) | |||||
Accounts
payable
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507,042 | (287,444 | ) | |||||
Deferred
revenue
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(516,150 | ) | (516,150 | ) | ||||
Other
accrued liabilities
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(261,099 | ) | (1,429,952 | ) | ||||
Net
cash provided by (used in) operating activities
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1,494,314 | (2,791,006 | ) | |||||
Cash
flows from investing activities:
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||||||||
Capital
expenditures
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(303,680 | ) | (1,403,665 | ) | ||||
Proceeds
from disposal of fixed assets
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54,630 | - | ||||||
Net
cash used in investing activities
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(249,050 | ) | (1,403,665 | ) | ||||
Cash
flows from financing activities:
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||||||||
Stock
options exercised
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3,469 | 81,094 | ||||||
Minimum
tax withholdings on stock options exercised
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(406,110 | ) | - | |||||
Excess
tax benefit from exercise of stock options
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487,509 | 619 | ||||||
Net
cash provided by financing activities
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84,868 | 81,713 | ||||||
Net
increase (decrease) in cash and cash equivalents
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1,330,132 | (4,112,958 | ) | |||||
Cash
and cash equivalents at beginning of period
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1,943,364 | 6,149,015 | ||||||
Cash
and cash equivalents at end of period
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$ | 3,273,496 | $ | 2,036,057 |
March
31, 2010
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June
30, 2009
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|||||||
Work-in
progress
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$ | 744,409 | $ | 718,711 | ||||
Raw
materials and component parts
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8,591,912 | 8,981,435 | ||||||
Finished
goods
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3,929,250 | 4,311,440 | ||||||
Reserve
for obsolete and excess inventory
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(1,297,175 | ) | (1,347,648 | ) | ||||
$ | 11,968,396 | $ | 12,663,938 |
Three Months ended
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Nine Months ended
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|||||||||||||||
March 31,
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March 31,
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|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Beginning
balance
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$ | 1,835,200 | $ | 2,522,950 | $ | 2,179,300 | $ | 2,867,500 | ||||||||
Revenue
recognized
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||||||||||||||||
as
net sales
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(172,050 | ) | (171,600 | ) | (516,150 | ) | (516,150 | ) | ||||||||
1,663,150 | 2,351,350 | 1,663,150 | 2,351,350 | |||||||||||||
Less
- Current portion
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||||||||||||||||
of
deferred revenue
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(688,200 | ) | (688,200 | ) | (688,200 | ) | (688,200 | ) | ||||||||
$ | 974,950 | $ | 1,663,150 | $ | 974,950 | $ | 1,663,150 |
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(a)
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Disclosure
Controls and Procedures.
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(b)
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Changes
in internal control over financial
reporting
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ALLIED
HEALTHCARE PRODUCTS, INC.
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/s/ Daniel C.
Dunn
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Daniel C. Dunn
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Chief Financial Officer
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Date:
May 7, 2010
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