content_image/83392.jpg content_image/83393.jpg
The Company measures compensation cost as pre- scribed by APB Opinion No. 25 (“APB 25”), accounting for Stock Issued to Employees. No compensation cost has been recognized in the financial statements as the exercise price of all option grants is equal to the market price of the Company’s Common Stock at the date of grant. In October 1995, the Financial Accounting 

<img src='content_image/83392.jpg'>

The pro forma amounts were determined using the Black-Scholes model with the following assumptions: 

<img src='content_image/83393.jpg'>

## 10. MAJOR CUSTOMERS 

In each of fiscal years 2001, 2000 and 1999, $5,963,152, $8,976,422 and $441,102, respectively, of the Company’s royalty revenues were received from the same source. 

Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 123 (“SFAS 123”). SFAS defines a “fair value” based method of accounting for employee options or similar equity instruments. Had compensation cost been determined under the provi- sions of SFAS 123, the following pro forma net income (loss) and per share amounts would have been recorded. 

## 11. SIMPLIFIED EMPLOYEE PENSION (“SEP”) PLAN 

The Company maintains a SEP Plan in which all employ- ees are eligible to participate.The Company contributes a minimum of 3% of an employee’s compensation to an account set up for the benefit of the employee. If an employee also chooses to contribute to the SEP Plan through salary reduction contributions, the Company will match such contributions to a maximum of 7% of the employee’s salary.The Company contributed $76,063, $82,528 and $79,543, in fiscal years 2001, 2000 and 1999, respectively. 

