10-Q
2012-06-30
false
UTAH MEDICAL PRODUCTS INC
0000706698
--12-31
108473909
Accelerated Filer
Yes
No
No
2012
Q2
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<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(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, 2011.  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.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(2)    Inventories at June 30, 2012 and December 31, 2011 consisted of the following:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>June 30, 2012</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="144" valign="top" style='width:1.5in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,940</p> </td> <td width="11" valign="top" style='width:8.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2,518</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Work-in-process</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,083</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>795</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Raw materials</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,811</p> </td> <td width="11" valign="top" style='width:8.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,692</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Total</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="144" valign="top" style='width:1.5in;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>4,834</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,005</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(3)           Stock-Based Compensation.  At June 30, 2012, 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, <i>Stock Compensation</i>.  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 June 30, 2012 and 2011, the Company recognized $18 and $25, respectively, in stock-based compensation cost.  In the six months ended June 30, 2012 and 2011, the Company recognized $38 and $49, respectively, in stock-based compensation cost.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(4)           Comprehensive Income.  Comprehensive income for the second quarter (2Q) and first half (1H) of 2012 was $1,817 and $5,343, net of taxes, respectively.  The components used to calculate comprehensive income were foreign currency translation adjustments of ($579) and $149 in 2Q and 1H 2012, respectively, and unrealized holding gains (losses) of ($5) and $4 in 2Q and 1H 2012, respectively.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;line-height:13.0pt'>(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.  The acquisition was accretive to financial performance in both 2Q and 1H 2011 as well as 2Q and 1H 2012.</p> <p style='margin:0in;margin-bottom:.0001pt;line-height:13.0pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;line-height:13.0pt'>A one-year measurement period was initially established during which UTMD could make residual adjustments to valuations of assets and liabilities. No adjustments were made in 1H 2012, and the adjustment period has now expired. </p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>A two-year escrow was set aside from the purchase price to back the warranties and representations of the sellers.  No claims against the escrow have been made by UTMD. </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company incurred $35 in acquisition-related expenses in 2Q 2011 and $285 in 1H 2011, all of which were categorized under General and Administrative expenses in the Consolidated Statements of Income.  A portion, $266, of the 1H 2011 acquisition-related expense was not tax deductible.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;margin-bottom:6.0pt'>Revenue for the six months ended June 30, 2012 includes revenue from Femcare of $8,862. Net income from Femcare (after tax) in 1H 2012 was $2,326.  Revenue for the six months ended June 30, 2011 includes revenue from Femcare during the period after acquisition of $4,679. Net income from Femcare (after tax) during the period after acquisition in 1H 2011 was $730.</p> <p style='margin:0in;margin-bottom:.0001pt;margin-bottom:6.0pt'><i>Proforma Information</i></p> <p style='margin:0in;margin-bottom:.0001pt;margin-bottom:6.0pt'>Revenue and net income of the combined entity as though the business combination occurred as of the beginning of the reporting period is:</p> <p style='margin:0in;margin-bottom:.0001pt;margin-bottom:6.0pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="bottom" style='width:1.5in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Six months ended</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>June 30, 2012 (as reported)</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="bottom" style='width:101.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Six months ended</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>June 30, 2011</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Revenue</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="144" valign="top" style='width:1.5in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>21,230</p> </td> <td width="11" valign="top" style='width:8.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>21,089</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Net income</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,190</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>4,064</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt'>Pro forma net income of $4,064 for the six months ended June 30, 2011 does not include $285 in UTMD legal costs directly attributable to the acquisition, and $1,765 in Femcare expenses for employee shareholder bonuses, loan redemption premium related to termination of ownership, buy-out of warrants, financial advisory fees and an insurance premium for sellers’ liability which are directly attributable to the acquisition.</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>The March 18, 2011 purchase price was allocated as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'><u>Assets Acquired</u></p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Accounts receivable</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2,176</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Prepaid expenses</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>773</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Inventory</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,319</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt;text-indent:-9.0pt'>Property and equipment</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>606</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt;text-indent:-9.0pt'>Identifiable intangibles</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Patents</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>97</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Non-compete agreements</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>162</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Trademarks, trade names</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>11,559</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Customer relationships</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>11,559</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Regulatory approvals & product certifications</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>15,419</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:.9pt'>Goodwill</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>8,249</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Total assets acquired</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>51,919</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><u>Liabilities Assumed</u></p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Accounts payable</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,107</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Accrued expenses</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>644</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Deferred tax liability</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>9,084</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Total liabilities assumed</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>10,835</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Net assets acquired</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>41,084</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(6)  Notes payable.  In March, 2011, UTMD obtained a $14,000 loan from JPMorgan Chase Bank, N.A. (Chase), to help finance the purchase price of Femcare. 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 1.15 to 1.00 or better, f) maintain its Tangible Net Worth (TNW) above a minimum threshold 20% below UTMD’s TNW at closing on March 18, and g) maintain its Leverage Ratio at 2.75 to 1.00 or less.  UTMD is in compliance with all of the loan financial covenants at June 30, 2012.  Based on UTMD’s financial position, the bank’s margin was 2.00% at June 30, 2012.  The principal balance on this note at June 30, 2012 was $6,800.</p> <p style='margin:0in;margin-bottom:.0001pt;line-height:6.0pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>In March 2011, the Company also obtained a $12,934 loan from JP Morgan Chase, London Branch, 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.  The principal balance on this note at June 30, 2012 was $9,410.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> In December 2005, the Company borrowed $5,336 from the Bank of Ireland to finance repatriation of profits achieved from 1996 through 2005 under The American Jobs Creation Act of 2004.  The loan term is 10-years at an interest rate of 1.10% plus the bank’s money market rate, which is a total of the bank’s cost of funds and cost of liquidity.  The balance on the note at June 30, 2012 was $350.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(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.” </p> <p style='margin:0in;margin-bottom:.0001pt;line-height:6.0pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>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, 2012 or June 30, 2012.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt'>(8)   Investments.  As of June 30, 2012, 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:</p> <p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="top" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2Q 2012</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="top" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2Q 2011</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, beginning of period</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (183)</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (178)</p> </td> </tr> <tr> <td width="192" valign="bottom" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:5.25pt'>Realized loss from securities included in beginning balance</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>~</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>~</p> </td> </tr> <tr> <td width="192" valign="bottom" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:5.25pt'>Gross unrealized holding gains (losses), in equity securities</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(8)</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(5)</p> </td> </tr> <tr> <td width="192" valign="bottom" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:5.25pt'>Deferred income taxes on unrealized holding loss</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, end of period</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (188)</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (181)</p> </td> </tr> </table> </div>
<!--egx--> <p style='margin:0in;margin-bottom:.0001pt;margin-bottom:6.0pt'>(9)  Fair Value Measurements. The Company follows ASC 820, <i>Fair Value Measurements and Disclosures</i> to determine fair value of its financial assets.  The following table provides financial assets carried at fair value measured as of June 30, 2012:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="8" valign="top" style='border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Fair Value Measurements Using</p> </td> </tr> <tr> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Description</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Total Fair Value</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>at 6/30/2012</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="115" valign="bottom" style='width:1.2in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> Quoted Prices</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>in Active Markets</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>for Identical Assets</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>(Level 1) </p> </td> <td width="12" valign="top" style='width:8.65pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="115" valign="bottom" style='width:1.2in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> Significant Other</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Observable Inputs</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>(Level 2) </p> </td> <td width="12" valign="top" style='width:8.65pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="115" valign="bottom" style='width:1.2in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Significant</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Unobservable Inputs</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>(Level 3 ) </p> </td> </tr> <tr> <td width="96" valign="top" style='width:1.0in;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Equities</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="96" valign="top" style='width:1.0in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>71</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="115" valign="top" style='width:1.2in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>71</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="115" valign="top" style='width:1.2in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="115" valign="top" style='width:1.2in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> </table>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> (10)        Subsequent Events.<b>  </b>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.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>June 30, 2012</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Finished goods</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="144" valign="top" style='width:1.5in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,940</p> </td> <td width="11" valign="top" style='width:8.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2,518</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Work-in-process</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,083</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>795</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Raw materials</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,811</p> </td> <td width="11" valign="top" style='width:8.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,692</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Total</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="144" valign="top" style='width:1.5in;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>4,834</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,005</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-bottom:6.0pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="bottom" style='width:1.5in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Six months ended</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>June 30, 2012 (as reported)</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="bottom" style='width:101.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Six months ended</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>June 30, 2011</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Revenue</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="144" valign="top" style='width:1.5in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>21,230</p> </td> <td width="11" valign="top" style='width:8.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="135" valign="top" style='width:101.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>21,089</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Net income</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="144" valign="top" style='width:1.5in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,190</p> </td> <td width="11" valign="top" style='width:8.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="135" valign="top" style='width:101.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>4,064</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'><u>Assets Acquired</u></p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Accounts receivable</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2,176</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Prepaid expenses</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>773</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Inventory</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,319</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt;text-indent:-9.0pt'>Property and equipment</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>606</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt;text-indent:-9.0pt'>Identifiable intangibles</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Patents</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>97</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Non-compete agreements</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>162</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Trademarks, trade names</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>11,559</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Customer relationships</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>11,559</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Regulatory approvals & product certifications</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>15,419</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:.9pt'>Goodwill</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>8,249</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Total assets acquired</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>51,919</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'><u>Liabilities Assumed</u></p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Accounts payable</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,107</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Accrued expenses</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>644</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Deferred tax liability</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>9,084</p> </td> </tr> <tr> <td width="336" valign="bottom" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Total liabilities assumed</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>10,835</p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> </p> </td> </tr> <tr> <td width="336" valign="top" style='width:3.5in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>Net assets acquired</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-right:-1.8pt'>$</p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:double windowtext 1.5pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>41,084</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="192" valign="top" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="top" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2Q 2012</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="top" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2Q 2011</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, beginning of period</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (183)</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (178)</p> </td> </tr> <tr> <td width="192" valign="bottom" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:5.25pt'>Realized loss from securities included in beginning balance</p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>~</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>~</p> </td> </tr> <tr> <td width="192" valign="bottom" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:5.25pt'>Gross unrealized holding gains (losses), in equity securities</p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(8)</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(5)</p> </td> </tr> <tr> <td width="192" valign="bottom" style='width:2.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:5.25pt'>Deferred income taxes on unrealized holding loss</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2</p> </td> </tr> <tr> <td width="192" valign="top" style='width:2.0in;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, end of period</p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (188)</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="105" valign="bottom" style='width:79.0pt;border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'> (181)</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <table border="0" cellspacing="0" cellpadding="0" style='border:solid windowtext 1.0pt;border-collapse:collapse'> <tr> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td colspan="8" valign="top" style='border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Fair Value Measurements Using</p> </td> </tr> <tr> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Description</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Total Fair Value</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>at 6/30/2012</p> </td> <td width="12" valign="top" style='width:8.65pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="115" valign="bottom" style='width:1.2in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> Quoted Prices</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>in Active Markets</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>for Identical Assets</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>(Level 1) </p> </td> <td width="12" valign="top" style='width:8.65pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="115" valign="bottom" style='width:1.2in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> Significant Other</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Observable Inputs</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>(Level 2) </p> </td> <td width="12" valign="top" style='width:8.65pt;border:none;border-top:solid windowtext 1.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="115" valign="bottom" style='width:1.2in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Significant</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Unobservable Inputs</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>(Level 3 ) </p> </td> </tr> <tr> <td width="96" valign="top" style='width:1.0in;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Equities</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="96" valign="top" style='width:1.0in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>71</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="115" valign="top" style='width:1.2in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>71</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="115" valign="top" style='width:1.2in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> <td width="12" valign="top" style='width:8.65pt;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="9" valign="top" style='width:6.5pt;border:none;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>$</p> </td> <td width="115" valign="top" style='width:1.2in;border:none;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0</p> </td> </tr> </table>
1940000
2518000
1083000
795000
1811000
1692000
4834000
5005000
18000
25000
38000
49000
1817000
5343000
-579000
149000
-5000
4000
35000
285000
266000
8862000
2326000
4679000
730000
21230000
21089000
5190000
4064000
285000
1765000
2176000
773000
1319000
606000
97000
162000
11559000
11559000
15419000
8249000
51919000
1107000
644000
9084000
10835000
41084000
In March, 2011, UTMD obtained a $14,000 loan from JPMorgan Chase Bank, N.A. (Chase), to help finance the purchase price of Femcare. 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 1.15 to 1.00 or better, f) maintain its Tangible Net Worth (TNW) above a minimum threshold 20% below UTMD’s TNW at closing on March 18, and g) maintain its Leverage Ratio at 2.75 to 1.00 or less. UTMD is in compliance with all of the loan financial covenants at June 30, 2012. Based on UTMD’s financial position, the bank’s margin was 2.00% at June 30, 2012. The principal balance on this note at June 30, 2012 was $6,800.
14000000
30-day LIBOR rate plus a margin starting at 2.80% and ranging from 2.00% to 3.75%
0.0200
6800000
In March 2011, the Company also obtained a $12,934 loan from JP Morgan Chase, London Branch, 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. The principal balance on this note at June 30, 2012 was $9,410.
12934000
9410000
In December 2005, the Company borrowed $5,336 from the Bank of Ireland to finance repatriation of profits achieved from 1996 through 2005 under The American Jobs Creation Act of 2004. The loan term is 10-years at an interest rate of 1.10% plus the bank’s money market rate, which is a total of the bank’s cost of funds and cost of liquidity. The balance on the note at June 30, 2012 was $350.
5336000
1.10% plus the bank’s money market rate
350000
-183000
-178000
-8000
-5000
3000
2000
-188000
-181000
71000
71000
0000
0000
3688371
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2012-01-01
2012-06-30
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2011-06-30
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2011-06-30
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2011-03-31
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2012-08-07
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