<table>
 <tbody><tr style="FONT-SIZE:1PX">
 <td width="5%" valign="TOP">
 <p>&nbsp;</p>
 </td>
 <td width="95%" valign="TOP">
 <p>&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">Total unrecognized compensation cost related to
 unvested stock awards at December 31, 2008 amounts to approximately
 $1,707,198 and is expected to be recognized over a weighted average period of
 3.72 years. Total compensation cost
 for the three and nine months ended December 31, 2008, amounted to
 approximately $170,789 and $466,849 for these stock awards.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="2">(6)</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2"><u>Commitments and Contingencies</u></font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">The Company had sales to one customer in excess of
 10% of total sales for the three and nine months ended December 31,
 2008. Sales to this customer
 approximated $15.6 million and $47.3 million for the three and nine month
 periods, respectively. Accounts
 receivable as of December 31, 2008 from this customer approximated $2.3
 million.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">In October, 2008 the Company exercised its one-time
 option to terminate early its sublease for its principal office space in New
 York, effective October 25, 2009. As a result; the Company (i) is amortizing
 the value of its leasehold improvements over the remaining term of the lease
 (13 months), and (ii) has revised the monthly amortization of its deferred
 rent liability.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="2">(7)</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2"><u>Income Taxes</u> </font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">The Company did not record a benefit for federal,
 state and local income taxes for the period ended December 31, 2008 because
 any such benefit would be fully offset by an increase in the valuation
 allowance against the Company’s net deferred tax asset established as a
 result of our historical operating losses.
 The provision for income taxes for the period ended December 31, 2007
 was comprised of minimum state income taxes and the impact of a change in
 estimate of the Company’s net operating loss carryforward.</font></p>
 </td>
 </tr>
</tbody></table>
<table>
<tbody><tr>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>Total unrecognized compensation cost related to
 unvested stock awards at December 31, 2008 amounts to approximately
 $1,707,198 and is expected to be recognized over a weighted average period of
 3.72 years. Total compensation cost
 for the three and nine months ended December 31, 2008, amounted to
 approximately $170,789 and $466,849 for these stock awards.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font>(6)</font></p>
</td>
<td>
<p><font><u>Commitments and Contingencies</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The Company had sales to one customer in excess of
 10% of total sales for the three and nine months ended December 31,
 2008. Sales to this customer
 approximated $15.6 million and $47.3 million for the three and nine month
 periods, respectively. Accounts
 receivable as of December 31, 2008 from this customer approximated $2.3
 million.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In October, 2008 the Company exercised its one-time
 option to terminate early its sublease for its principal office space in New
 York, effective October 25, 2009. As a result; the Company (i) is amortizing
 the value of its leasehold improvements over the remaining term of the lease
 (13 months), and (ii) has revised the monthly amortization of its deferred
 rent liability.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font>(7)</font></p>
</td>
<td>
<p><font><u>Income Taxes</u> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The Company did not record a benefit for federal,
 state and local income taxes for the period ended December 31, 2008 because
 any such benefit would be fully offset by an increase in the valuation
 allowance against the Company’s net deferred tax asset established as a
 result of our historical operating losses.
 The provision for income taxes for the period ended December 31, 2007
 was comprised of minimum state income taxes and the impact of a change in
 estimate of the Company’s net operating loss carryforward.</font></p>
</td>
</tr>
</tbody></table>