10-Q
2011-09-30
false
UTAH MEDICAL PRODUCTS INC
0000706698
--12-31
Accelerated Filer
No
No
No
2011
Q3
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<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(1) The unaudited financial statements have been prepared in accordance with the instructions to form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States. These statements should be read in conjunction with the financial statements and notes included in the Utah Medical Products, Inc. ("UTMD" or "the Company") annual report on form 10-K for the year ended December 31, 2010. In the opinion of management, the accompanying financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. Currency amounts are in thousands except per-share amounts, and where noted.</font></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(2) Inventories at September 30, 2011 and December 31, 2010 consisted of the following:</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div align="center"> <table width="60%" cellpadding="0" cellspacing="0"> <tr> <td width="36%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">September 30,</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">December 31,</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr> <td width="36%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">2011</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">2010</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="36%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Finished goods</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">2,465</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">1,008</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="36%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Work-in-process</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">936</font></div></td> <td width="1%" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">757</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="36%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Raw materials</font></div></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">1,562</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">1,332</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="36%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Total</font></div></td> <td width="2%" style="PADDING-BOTTOM:4px" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 4px double" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" style="BORDER-BOTTOM:black 4px double" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">4,963</font></div></td> <td width="1%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:4px" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 4px double" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" style="BORDER-BOTTOM:black 4px double" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">3,097</font></div></td> <td width="1%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr></table></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(3) Stock-Based Compensation. At September 30, 2011, the Company has stock-based employee compensation plans which authorize the grant of stock options to eligible employees and directors. The Company accounts for stock compensation under FASB Accounting Standards Codification (“ASC”) 718, <font style="FONT-STYLE:italic; DISPLAY:inline">Stock Compensation</font>. This statement requires the Company to recognize compensation cost based on the grant date fair value of options granted to employees and directors. In the quarters ended September 30, 2011 and 2010, the Company recognized $24 and $19, respectively, in stock-based compensation cost. In the nine months ended September 30, 2011 and 2010, the Company recognized $73 and $64, respectively, in stock-based compensation cost.</font></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(4) Comprehensive Income. Comprehensive income for the third quarter (3Q) and first nine months (9M) of 2011 was $1,554 and $4,964, net of taxes, respectively. The components used to calculate comprehensive income were foreign currency translation adjustments of ($668) and ($585) in 3Q and 9M 2011, respectively, and unrealized holding gains (losses) of ($15) and ($7) in 3Q and 9M 2011, respectively.</font></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(5) Acquisition. On March 18, 2011, UTMD purchased all of the common shares of Femcare Holdings Ltd (Femcare) of the United Kingdom, and its subsidiaries. Femcare is best known for its leading global brand the Filshie Clip System – a female surgical contraception device (tubal ligation). UTMD expects the business combination will provide diversification, expansion and integration benefits that each company separately did not have the opportunity to achieve. UTMD anticipates that the acquisition will be accretive to financial performance in 2011 and beyond.</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">While UTMD used its best estimates and assumptions as a part of the $41 million purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, UTMD will record adjustments to the assets acquired and liabilities assumed with the corresponding offset to intangible assets. Upon the conclusion of the measurement period or final determination of the values of assets or liabilities assumed, which ever comes first, any subsequent adjustments will be recorded to consolidated statements of operations. UTMD believes that the accounting of fixed assets is complete, but liabilities and intangible asset balances remain uncertain. As of September 30, 2011, no adjustments have been made in the purchase price set on the closing date, or in the initial valuation of assets and liabilities and allocation of intangible assets.</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><font style="DISPLAY:inline"> </font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:-1.8pt" align="left"><font style="DISPLAY:inline">A two-year $3.2 million escrow was set aside from the purchase price to back the warranties and representations of the sellers. The purchase price allocation is currently as follows:</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"> </div> <div align="center"> <table width="60%" cellpadding="0" cellspacing="0"> <tr> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Assets Acquired</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Accounts receivable</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">2,176</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Prepaid expenses</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">344</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Inventory</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">1,319</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Property and equipment</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">606</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Identifiable intangibles</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Patents</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">97</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Non-compete agreements</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">162</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Trademarks, trade names</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">11,559</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Customer relationships</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">11,559</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Regulatory approvals & product certifications</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">15,419</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" style="TEXT-ALIGN:left; PADDING-BOTTOM:2px; TEXT-INDENT:0pt; PADDING-LEFT:0pt; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" valign="bottom"><font style="DISPLAY:inline"><font style="DISPLAY:inline"> Goodwill</font></font></td> <td width="2%" style="PADDING-BOTTOM:2px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 2px solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:black 2px solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline"><font style="DISPLAY:inline">9,084</font></font></div></td> <td width="1%" style="PADDING-BOTTOM:2px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Total assets acquired</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">52,325</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Liabilities Assumed</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Accounts payable</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">1,107</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Accrued expenses</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">1,049</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Deferred tax liability</font></div></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">9,084</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Total liabilities assumed</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">11,241</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"><font style="DISPLAY:inline"> N<font style="DISPLAY:inline">et assets acquired</font></font></td> <td width="2%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 4px double" align="left" valign="bottom"><font style="DISPLAY:inline"> <font style="DISPLAY:inline">$</font></font></td> <td width="8%" style="BORDER-BOTTOM:black 4px double" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline"><font style="DISPLAY:inline">41,084</font></font></div></td> <td width="1%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr></table></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">With respect to the assets acquired from Femcare, UTMD will amortize the patents and non-compete agreements over 10 and 5 years, respectively. The remaining $38,537 in identifiable intangibles will be amortized over 15 years. The $9,084 in deferred tax liability and goodwill results from the difference between the book basis and tax basis of the accumulated amortization of identifiable intangible assets. The deferred tax liability will decline to zero over 15 years as the tax basis of the intangibles declines. The goodwill will not be amortized, but will be written down if and when the value becomes impaired.</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">The Company incurred $8 towards acquisition related expenses, all of which are categorized under General and Administrative expenses in the Consolidated Condensed Statements of Income for the three months ended September 30, 2011, and $293 for the nine months ended September 30, 2011.</font></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(6) Notes payable. On March 17, 2011, UTMD obtained a $14,000 loan from JPMorgan Chase Bank, N.A. (Chase), to help finance the purchase price of Femcare. On September 23, 2011, certain loan covenants were modified and clarified. The terms and conditions of the loan require UTMD to a) repay the loan in equal monthly payments over 5 years, b) pay interest based on the 30-day LIBOR rate plus a margin starting at 2.80% and ranging from 2.00% to 3.75%, depending on the ratio of its funded debt to EBITDA (Leverage Ratio), c) pledge 65% of all foreign subsidiaries’ stock, d) provide first priority liens on all domestic business assets, e) maintain its Interest Coverage Ratio at 1.05 to 1.00 or better, f) maintain its Tangible Net Worth (TNW) above negative $20 million, plus 50% of cumulative net income after April 1, 2011, and g) maintain its Leverage Ratio at 2.75 to 1.00 or less. Based on the September 30, 2011 Leverage Ratio, the bank’s margin is now 2.00%. UTMD is in compliance with all of the loan financial covenants at September 30, 2011.</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">On March 18, 2011, Femcare obtained an £8,000 ($12,934) loan from JP Morgan Chase, London, to help finance UTMD’s purchase of Femcare. Terms and conditions of the loan are the same as those listed above for the $14,000 U.S. loan.</font></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(7) Warranty Reserve. The Company’s published warranty is: “UTMD warrants its products to conform in all material respects to all published product specifications in effect on the date of shipment, and to be free from defects in material and workmanship for a period of thirty (30) days for supplies, or twenty-four (24) months for equipment, from date of shipment. During the warranty period UTMD shall, at its option, replace any products shown to UTMD's reasonable satisfaction to be defective at no expense to the Purchaser or refund the purchase price.”</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">UTMD maintains a warranty reserve to provide for estimated costs which are likely to occur. The amount of this reserve is adjusted, as required, to reflect its actual experience. Based on its analysis of historical warranty claims and its estimate that existing warranty obligations are immaterial, no warranty reserve was made at January 1, 2011. Femcare had an established reserve at the time of acquisition by UTMD, which is shown as an increase in the reserve in the table below. The following table summarizes changes to UTMD’s warranty reserve during 9M 2011:</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"> </div> <div align="center"> <table width="60%" cellpadding="0" cellspacing="0"> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Beginning Balance, January 1, 2011</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">0</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline"><font style="DISPLAY:inline; TEXT-DECORATION:underline">Changes in Warranty Reserve during 9M 2011:</font></font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline"> Aggregate reductions for warranty repairs</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">-</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline"> Aggregate changes for warranties issued during reporting period</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">-</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="48%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline"> Aggregate changes in reserve related to preexisting warranties</font></div></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">32</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="48%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Ending Balance, September 30, 2011</font></div></td> <td width="2%" style="PADDING-BOTTOM:4px" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 4px double" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" style="BORDER-BOTTOM:black 4px double" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">32</font></div></td> <td width="1%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr></table></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(8) Investments. As of September 30, 2011, the Company’s investments are in Citigroup (C) and General Electric (GE). Changes in the unrealized holding gain/loss on investment securities available-for-sale and reported as a separate component of accumulated other comprehensive income are as follows:</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><br></br></div> <div align="center"> <table width="60%" cellpadding="0" cellspacing="0"> <tr> <td width="36%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">3Q 2011</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">3Q 2010</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="36%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Balance, beginning of period</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">(181</font></div></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">)</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">(224</font></div></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">)</font></div></td></tr> <tr bgcolor="white"> <td width="36%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Realized loss from securities included in beginning balance</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">-</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">30</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="36%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Gross unrealized holding gains (losses), in equity securities</font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">(25</font></div></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">) </font></div></td> <td width="2%" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">6</font></div></td> <td width="1%" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="white"> <td width="36%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:9pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Deferred income taxes on unrealized holding loss</font></div></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">10</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="8%" style="BORDER-BOTTOM:#000000 1.5pt solid" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">(14</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">)</font></div></td></tr> <tr bgcolor="#cceeff"> <td width="36%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">Balance, end of period</font></div></td> <td width="2%" style="PADDING-BOTTOM:4px" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 4px double" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" style="BORDER-BOTTOM:black 4px double" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">(196</font></div></td> <td width="1%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">)</font></div></td> <td width="2%" style="PADDING-BOTTOM:4px" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="BORDER-BOTTOM:black 4px double" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" style="BORDER-BOTTOM:black 4px double" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">(202</font></div></td> <td width="1%" style="PADDING-BOTTOM:4px" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">)</font></div></td></tr></table></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block"><font style="DISPLAY:inline">(9) Fair Value Measurements. The Company follows ASC 820, <font style="FONT-STYLE:italic; DISPLAY:inline">Fair Value Measurements and Disclosures</font> to determine fair value of its financial assets. The following table provides financial assets carried at fair value measured as of September 30, 2011:</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="justify"> </div> <div align="center"> <table width="60%" cellpadding="0" cellspacing="0"> <tr> <td width="32%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="33%" colspan="10" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">Fair Value Measurements Using</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr> <td width="32%" style="BORDER-BOTTOM:#000000 1.5pt solid; TEXT-ALIGN:center" valign="bottom"> <div style="TEXT-ALIGN:center; LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt"><font style="DISPLAY:inline">Description</font></div></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="right" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">Total Fair Value</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">at 9/30/2011</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">Quoted Prices</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">in Active Markets</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">for Identical Assets</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">(Level 1)</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">Significant Other</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline"> Observable Inputs</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">(Level 2)</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="9%" colspan="2" style="BORDER-BOTTOM:black 1.5pt solid" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">Significant</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">Unobservable Inputs</font></div> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="center"><font style="DISPLAY:inline">(Level 3 )</font></div></td> <td width="1%" style="PADDING-BOTTOM:1.5pt" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr> <tr bgcolor="#cceeff"> <td width="32%" style="TEXT-ALIGN:center; TEXT-INDENT:0pt; PADDING-LEFT:0pt; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" valign="bottom"> <div style="TEXT-ALIGN:center; LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt"><font style="DISPLAY:inline">Common stock</font></div></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">58</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">58</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">0</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="2%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td> <td width="1%" align="left" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">$</font></div></td> <td width="8%" align="right" valign="bottom"> <div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="right"><font style="DISPLAY:inline">0</font></div></td> <td width="1%" align="left" valign="bottom"><font style="DISPLAY:inline"> </font></td></tr></table></div>
<!--egx--><div style="LINE-HEIGHT:1.25; TEXT-INDENT:0pt; DISPLAY:block; MARGIN-LEFT:0pt; MARGIN-RIGHT:0pt" align="left"><font style="DISPLAY:inline">(10) Subsequent Events.<font style="DISPLAY:inline; FONT-WEIGHT:bold"> </font>UTMD has evaluated subsequent events through the date the financial statements were issued, and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements.</font></div>
0000706698
2011-07-01
2011-09-30
0000706698
2011-09-30
0000706698
2010-12-31
0000706698
2010-07-01
2010-09-30
0000706698
2011-01-01
2011-09-30
0000706698
2010-01-01
2010-09-30
0000706698
2009-12-31
0000706698
2010-09-30
0000706698
2011-11-04
0000706698
2011-06-30
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