Note

Additional

Common

Receivable

Deferred

Common Stock

Paid-in

Stock

Accumulated

from

Compensation

Shares

Amount

Capital

Warrants

Deficit

Shareholder

for Services

Total

Balance at December 31, 2003

7,710,728

$

77

$

48,306

$

353

$

(40,875

)

$

(291

)

$

(50

)

$

7,520

Net income

—

—

—

—

224

—

—

224

Stock compensation for services

—

—

—

—

—

—

19

19

Exercise of common stock options

206,798

2

82

—

—

—

—

84

Balance at March 31, 2004

7,917,526

$

79

$

48,388

$

353

$

(40,651

)

$

(291

)

$

(31

)

$

7,847