10-Q
2012-09-30
false
Oxford Technologies Inc
0001169567
--12-31
0
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<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>1.       NATURE OF OPERATIONS</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:.5in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Oxford Technologies, Inc. (“the Company”) and its subsidiary, Axiom Manufacturing Services Limited (“Axiom”) provide electronic manufacturing services (EMS) to third parties in the following market sectors: computers and related products, industrial control equipment, testing and instrumentation products and medical devices. Axiom offers its customers a comprehensive integrated design and manufacturing service from initial design to volume production, direct order fulfilment and aftermarket support. The Company’s customer base is primarily in the United Kingdom.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The Company was incorporated in the State of Delaware on March 8, 2002. On February 12, 2003, the Company acquired Axiom by issuing 13,564,002 shares of its common stock in exchange for all issued and outstanding capital shares of Axiom owned by Great Admirer Limited (“Great Admirer”), a Hong Kong Corporation. The Company as the legal acquirer was the registrant on that date and remains the registrant with the Securities and Exchange Commission. The merger was accounted for as a reverse acquisition under accounting principles generally accepted in the United States of America. As a result of the acquisition, Axiom became the Company’s wholly-owned subsidiary and Great Admirer became the controlling shareholder of the Company. The continuing operations of the Company will reflect the consolidated operations of Oxford and its wholly-owned subsidiary, Axiom.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>At the time Great Admirer acquired Axiom in 2002, Great Admirer was a non-operating shell company and incurred minimal costs to acquire Axiom. Therefore no costs incurred by Axiom were recorded in the accounts of Axiom.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Axiom was incorporated in South Wales, United Kingdom on September 3, 1980, under the name of Aiwa (UK) Limited, with the Company subsequently being renamed Axiom Manufacturing Services Limited on April 10, 2002.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The Company established Axiom MS Limited (“AMS”) on July 29, 2008. AMS was incorporated on July 29, 2008 to seek new business opportunities.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Axiom’s principal office and manufacturing facility is located at Technology Park, Newbridge, South Wales, United Kingdom. AMS is the owner of the above mentioned facility.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>In January 2011 the Company transferred all of its 13,564,002 shares in Axiom Manufacturing Services Limited to Axiom MS Limited. In exchange Axiom MS Limited issued 700 shares of its common stock to Oxford Technologies, Inc.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Basis of Financial Statements Presentation</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for full year financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for the nine months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These financial statements and notes included herein should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto that are included in the Company’s annual report on Form 10-K for the year ended December 31, 2011.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Net Income / (Loss) Per Common Share</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Basic net income/ (loss) per share of common stock is calculated by dividing the net income/ (loss) by the weighted average number of shares of common stock outstanding during the period.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Foreign Currency Translation</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The functional currency of the Company's operations in the UK is the British Pound Sterling.</font><font lang="EN-GB" style='line-height:115%'> The financial statements of the Company were translated to US dollars using quarter-end exchange rates for the balance sheets and weighted average exchange rates for the statements of operations and statements of cash flows. Equity transactions were translated using historical rates. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the statements of stockholders’ equity in total comprehensive income or loss.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Use of Estimates</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Revenue Recognition</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Sales revenues are generally recognized when the products are shipped to the customers or services are rendered, net of discounts, returns and allowances. All revenues generated and the associated cost of sales incurred relate to the EMS service offering (manufacturing of OEM customer products) in 2012, with 99% of revenues coming from this source and the remaining percentage of revenue and cost of sales relating to the provision of a market return and repair service.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Trade Receivables</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Trade receivables are stated at net realisable value. This value includes an appropriate estimated allowance for uncollectible accounts. The allowance is calculated based upon an evaluation of the level of past due accounts and the relationship with the financial status of our customers.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Inventory</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Inventories are stated at the lower of cost or market value. Cost is determined using the first-in, first-out method. Inventory quantities on hand are regularly reviewed and where necessary, reserves for excess and unusable inventories recorded.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">September 30, 2012</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">December 31, 2011</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Raw Materials</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">5,527</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">4,588</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Work in Progress</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">3,355</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">2,228</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Finished Goods</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">751</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">328</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:13.5pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">9,633</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">7,144</font></p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">                                                </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">                </font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in;text-indent:-4.5pt'><b><font lang="EN-GB" style='line-height:115%'>Property, Plant and Equipment</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Property, plant and equipment are recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight line basis over estimated useful lives of various asset classes as follows:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Building and building improvements       20 to 45 years</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Machinery and equipment                        5 to 10 years</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Fixtures and fittings                                    3 to 8 years</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'> Upon retirement or sales, the costs and related depreciation of the asset disposed of, are removed from the accounts and any resulting gain or loss is included in the determination of income. Repairs and maintenance costs are expensed as incurred. The Company reviews its property and equipment annually for impairment, and accordingly will write down those assets to their estimated fair value.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Income Taxes</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognised for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognised for taxable temporary differences.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Fair Value of Financial Instruments</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>The carrying amounts of the Company’s financial instruments, which include cash, accounts receivable, accounts payable and accrued expenses are representative of their fair values due to the short-term maturity of these instruments.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Funding Arrangements</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The Company has an invoice discounting facility provided by its bankers under which the bank advances up to 80% of the value of qualifying invoices on presentation. This is repaid when the customer settles the invoice with the remaining 20% released to the Company less bank charges at this time. The Company is responsible for collecting the debt. Security for the advances under this facility is provided by a charge over the accounts receivable of the Company. The amount held at this facility is shown in Line of Credit on the balance sheet. Axiom Manufacturing Services accounts for this as a transfer of receivables as a secured borrowing with pledge of collateral. Management believes that this treatment complies with guidance provided in FASB ASC 860-30-25-3.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Borrowings on this facility as at September 30, 2012 were $0.03 million as compared to borrowings amounting to $1.3 million as at September 30, 2011. Borrowings are included within ‘Line of  Credit ’ under the liability section of the balance sheet.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Charges incurred amounted to $0.09 million to September 30, 2012 as compared to $0.08 million for the same period of the previous year. Interest amounted to $0.008 million a decrease of 80% on the same period of the previous year, the decrease is to the facility being used less. Charges are included within ‘Operating Expenses’ in the statement of operations and comprehensive income and interest charged on this facility is included within interest expense under ‘Other Income and Expenses’.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Line of Credit</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'><font lang="EN-GB" style='line-height:115%'>The components of this balance sheet account are shown below:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">September 30, 2012</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">December 31, 2011</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Current Account</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">2,653</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">                  251      </font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Deposit Account</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">49</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">47</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Invoice Finance</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(26)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,315)</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Unpresented Checks</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(4,606)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(8)</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> </tr> <tr style='height:13.5pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total</p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,930)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,025)</font></p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Recently Issued Accounting Pronouncements</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>We have reviewed recent accounting pronouncements and determined they will have no present or future impact on our business. Accounting standards updates have been issued through 2012-07.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">3.    CAPITAL LEASE</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>At the end of each lease the Company will have the option to purchase the equipment. The leases are a mixture of 3 and 5 year terms.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'><font lang="EN-GB" style='line-height:115%'>Future principal lease payments are as follows (in US$’000):</font></p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="265" valign="bottom" style='width:198.75pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">Capital Lease Principal Payment</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="265" valign="bottom" style='width:198.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Year ending December 31, 2013</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">249</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Year ending December 31, 2014</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">21</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Year ending December 31, 2015</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">4</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Total</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">274</font></p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in;text-align:justify'><font lang="EN-GB" style='line-height:115%'>These assets are being depreciated over their estimated useful economic lives and are included in the depreciation expenses for the nine-months ended September 30, 2012 and 2011.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">4.     SUBSEQUENT EVENTS</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:.5in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued. Per our evaluation we noted no significant subsequent event that requires disclosure.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Basis of Financial Statements Presentation</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for full year financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal, recurring nature. Operating results for the nine months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These financial statements and notes included herein should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto that are included in the Company’s annual report on Form 10-K for the year ended December 31, 2011.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Foreign Currency Translation</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The functional currency of the Company's operations in the UK is the British Pound Sterling.</font><font lang="EN-GB" style='line-height:115%'> The financial statements of the Company were translated to US dollars using quarter-end exchange rates for the balance sheets and weighted average exchange rates for the statements of operations and statements of cash flows. Equity transactions were translated using historical rates. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the statements of stockholders’ equity in total comprehensive income or loss.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Use of Estimates</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Revenue Recognition</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Sales revenues are generally recognized when the products are shipped to the customers or services are rendered, net of discounts, returns and allowances. All revenues generated and the associated cost of sales incurred relate to the EMS service offering (manufacturing of OEM customer products) in 2012, with 99% of revenues coming from this source and the remaining percentage of revenue and cost of sales relating to the provision of a market return and repair service.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Trade Receivables</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Trade receivables are stated at net realisable value. This value includes an appropriate estimated allowance for uncollectible accounts. The allowance is calculated based upon an evaluation of the level of past due accounts and the relationship with the financial status of our customers.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Inventory</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Inventories are stated at the lower of cost or market value. Cost is determined using the first-in, first-out method. Inventory quantities on hand are regularly reviewed and where necessary, reserves for excess and unusable inventories recorded.</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">September 30, 2012</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">December 31, 2011</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Raw Materials</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">5,527</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">4,588</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Work in Progress</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">3,355</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">2,228</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Finished Goods</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">751</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">328</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:13.5pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">9,633</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">7,144</font></p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">                                                </font></p>
<!--egx--> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in;text-indent:-4.5pt'><b><font lang="EN-GB" style='line-height:115%'>Property, Plant and Equipment</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>Property, plant and equipment are recorded at cost, net of accumulated depreciation. Depreciation is computed on a straight line basis over estimated useful lives of various asset classes as follows:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Building and building improvements       20 to 45 years</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Machinery and equipment                        5 to 10 years</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Fixtures and fittings                                    3 to 8 years</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'> Upon retirement or sales, the costs and related depreciation of the asset disposed of, are removed from the accounts and any resulting gain or loss is included in the determination of income. Repairs and maintenance costs are expensed as incurred. The Company reviews its property and equipment annually for impairment, and accordingly will write down those assets to their estimated fair value.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Income Taxes</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognised for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognised for taxable temporary differences.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Fair Value of Financial Instruments</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><font lang="EN-GB" style='line-height:115%'>The carrying amounts of the Company’s financial instruments, which include cash, accounts receivable, accounts payable and accrued expenses are representative of their fair values due to the short-term maturity of these instruments.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><font lang="EN-GB">Line of Credit</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'><font lang="EN-GB" style='line-height:115%'>The components of this balance sheet account are shown below:</font></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">September 30, 2012</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">December 31, 2011</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Current Account</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">2,653</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">                  251      </font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Deposit Account</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">49</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">47</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Invoice Finance</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(26)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,315)</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Unpresented Checks</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(4,606)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(8)</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> </tr> <tr style='height:13.5pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total</p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,930)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,025)</font></p> </td> </tr> </table> </div>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'><b><font lang="EN-GB" style='line-height:115%'>Recently Issued Accounting Pronouncements</font></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'><font lang="EN-GB" style='line-height:115%'>We have reviewed recent accounting pronouncements and determined they will have no present or future impact on our business. Accounting standards updates have been issued through 2012-07.</font></p>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-left:.25in'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">September 30, 2012</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">December 31, 2011</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Raw Materials</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">5,527</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">4,588</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Work in Progress</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">3,355</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">2,228</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Finished Goods</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">751</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">328</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:13.5pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">9,633</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">7,144</font></p> </td> </tr> </table> </div>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">September 30, 2012</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">December 31, 2011</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">US $'000</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Current Account</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">2,653</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">                  251      </font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Deposit Account</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">49</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">47</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Invoice Finance</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(26)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,315)</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Unpresented Checks</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(4,606)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(8)</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="288" valign="bottom" style='width:216.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB"> </font></p> </td> </tr> <tr style='height:13.5pt'> <td width="288" valign="bottom" style='width:216.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total</p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,930)</font></p> </td> <td width="119" valign="bottom" style='width:88.95pt;border:none;border-bottom:double windowtext 2.25pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">(1,025)</font></p> </td> </tr> </table> </div>
<!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-indent:.25in'><font lang="EN-GB" style='line-height:115%'>Future principal lease payments are as follows (in US$’000):</font></p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="265" valign="bottom" style='width:198.75pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><font lang="EN-GB">Capital Lease Principal Payment</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="265" valign="bottom" style='width:198.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Year ending December 31, 2013</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">249</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Year ending December 31, 2014</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">21</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Year ending December 31, 2015</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;background:#CCFFCC;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">4</font></p> </td> </tr> <tr style='height:12.75pt'> <td width="392" valign="bottom" style='width:293.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font lang="EN-GB">Total</font></p> </td> <td width="265" valign="bottom" style='width:198.75pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'><font lang="EN-GB">274</font></p> </td> </tr> </table> </div>
5527
4588
3355
2228
751
328
2914000
2557000
10361000
6898000
9633000
7144000
434000
323000
23342000
16922000
9163000
8407000
1159000
1114000
45000
43000
33709000
26486000
7309000
4964000
1122000
999000
1087000
987000
1930000
1025000
1306000
1345000
249000
365000
1407000
1353000
2142000
1824000
16282000
12862000
25000
145000
25000
145000
16307000
13007000
2000
2000
33478000
33478000
-2820000
-3577000
-13258000
-16424000
17402000
13479000
0.0001
0.0001
20000000
20000000
0.0001
0.0001
80000000
80000000
18564002
18564002
18564002
18564002
2000
2000
33709000
26486000
18564002
0001169567
2012-01-01
2012-09-30
0001169567
2012-09-30
0001169567
2011-12-31
0001169567
2012-07-01
2012-09-30
0001169567
2011-07-01
2011-09-30
0001169567
2011-01-01
2011-09-30
0001169567
2011-09-30
0001169567
2010-12-31
iso4217:USD
shares
iso4217:USD
shares
Net of allowance of $ 88 as of September 30, 2012.
Net of allowance of $-0- as of December 31, 2011.
Net of accumulated depreciation of $ 27,634 as of September 30, 2012.
Net of accumulated depreciation of $ 25,911 as of December 31, 2011.