| April 23, 2003 Consolidated Statements of Operations
| For the Three Months Ended | | March 31, 2003 | March 31, 2002 | | Revenue | $7,291,744 | $7,108,296 | | | | | | Cost of goods sold | 2,415,004 | 2,601,295 | | Gross profit | 4,876,740 | 4,507,001 | | | | | | Operating expenses: | | | | Research & development | 1,545,370 | 1,306,921 | | General & administrative | 747,229 | 601,699 | | Sales & marketing | 4,707,383 | 4,377,121 | | Operating loss | (2,123,242) | (1,778,740) | | | | | | Other income (expense): | | | | Interest income | 11,405 | 23,099 | | Interest expense | (28,866) | (27,156) | | Other | (21,204) | (12,122) | | (38,665) | (16,179) | | | | | | <*dv_2*>Net loss for the period | $(2,161,907) | $(1,794,919) | | | | | | Net loss per share - basic and diluted | $(0.11) | $(0.12) | | | | | | Weighted average shares outstanding | 19,584,300 | 15,490,930 | Selected Balance Sheet Data
| March 31, 2003 | December 31, 2002 | | Cash and cash equivalents | $5,581,046 | $1,347,753 | | Working capital | 12,673,213 | 6,895,837 | | Total assets | 23,393,864 | 17,721,065 | | Total liabilities | 8,625,956 | 8,906,323 | | Stockholders' equity | 14,767,908 | 8,814,742 | |
