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UNILENS VISION INC 10-Q --06-30 2369354 false 0000852564 Yes No Smaller Reporting Company No 2013 Q1 2012-09-30

Note 1 — Basis of Presentation and Consolidation Basis of Presentation Unilens Vision Inc. operates through our wholly-owned subsidiary, Unilens Corp. USA, located in Largo, Florida. The accompanying consolidated financial statements (the “Financial Statements”) for the interim periods ended September 30, 2012 and 2011 (the “Interim Period”) are i) prepared on the basis of accounting principles generally accepted in the United States, ii) conform in all material respects with accounting principles generally accepted in Canada, and iii) are unaudited, but in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the financial position, operations, and changes in financial results of the Interim Period.  The Financial Statements are not necessarily indicative of the results to be expected for the full year.  The Financial Statements do not contain the detail or footnote disclosure concerning accounting policies and other matters which would be included in full year financial statements, and therefore should be read in conjunction with our audited financial statements for the year ended June 30, 2012. Additional information concerning us is contained in the Management Discussion and Analysis included in this quarterly report.  Basis of Consolidation These consolidated financial statements include the accounts of Unilens Vision Inc. and its wholly-owned subsidiary, Unilens Corp. USA and its wholly-owned subsidiary, Unilens Vision Sciences Inc. All significant intercompany transactions and balances have been eliminated in consolidation.

Note 2 — Stock-Based Compensation, Stock Options and Stock Stock-based payments are recorded using the fair value method of accounting for stock options.  Under this method, in addition to reflecting compensation expense for new share-based awards, expense is also recognized to reflect the remaining vesting period of awards that had been included in pro-forma disclosures in prior periods. There was no   stock compensation expense attributable to stock options charged against income for the fiscal quarters ended September 30, 2012 and 2011, since no options were granted during such periods and all options outstanding at the beginning of such periods were fully vested. Stock Option Plan and Stock Options We have adopted a stock option plan (the “Stock Option Plan”).  The purpose of the Stock Option Plan is to advance the interests of the Company by providing directors, officers, employees and consultants with a financial incentive to continue to improve the performance of the Company and encourage them to remain with the Company.  The term of any option granted under the Stock Option Plan may not exceed 10 years.  The exercise price of each option must equal or exceed the market price of our stock as calculated on the date of grant. The maximum number of our common shares reserved for issuance under the Stock Option Plan cannot exceed 10% percent of our issued and outstanding common shares.  Options, in general, vest immediately except options granted to consultants performing investor relations activities vest at a minimum over a period of at least 12 months, 25% at the end of each three-month period.  No more than 5% of our issued and outstanding capital stock may be granted to any one individual in any twelve-month period and no more than 2% of our issued and outstanding capital stock may be granted to any one consultant in any twelve-month period.   At the Annual General Meeting of Shareholders held on March 25, 2010, the shareholders approved the Unilens’ Incentive Stock Option Plan. The initial maximum number of shares available for option grants under the Stock Option Plan is 236,935. The following table describes the number and the exercise price of options that have been granted, exercised, or cancelled under the Stock Option Plan approved on March 25, 2010 during the three month period ended September 30, 2012: <table style="width: 409.899pt; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="top" width="36%">   </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="16%"> Number of Options </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="24%"> Weighted Average Exercise Price </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="top" width="24%"> Weighted Average Remaining Life </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="36%"> Outstanding, beginning of year </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> 160,000 </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> $4.83 </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> 7.67 Years </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Exercised </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Granted </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%">   </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Directors/Employees </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Consultants </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Sub-total granted </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Expired/cancelled </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Outstanding, end of period </td> <td style="border-bottom: 2pt double windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> 160,000 </td> <td style="border-bottom: 2pt double windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> $4.83 </td> <td style="border-bottom: 2pt double windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> 7.42 Years </td> </tr> <tr style="height: 16.05pt;"> <td style="border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 16.05pt; padding-top: 0in;" valign="bottom" width="36%"> Options exercisable, end of period </td> <td style="border-bottom: 2.25pt double windowtext; padding: 0in 5.4pt; height: 16.05pt; text-align: center;" align="right" valign="bottom" width="16%"> 160,000 </td> <td style="border-bottom: 2.25pt double windowtext; padding: 0in 5.4pt; height: 16.05pt; text-align: center;" align="right" valign="bottom" width="24%"> $4.83 </td> <td style="border-bottom: 2.25pt double windowtext; padding: 0in 5.4pt; height: 16.05pt; text-align: center;" align="right" valign="bottom" width="24%"> 7.42 Years </td> </tr> </table> As of September 30, 2012 we have 160,000 options outstanding and an additional 76,935 options available for future grants under the existing Incentive Stock Option Plan. There was no cash proceeds, related to options exercised during the three months ended September 30, 2012, as no options were exercised. The following table describes the number of options, exercise price, and expiry date of the options granted by the Company that were outstanding at September 30, 2012:  <table style="width: 359.549pt; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr style="page-break-inside: avoid;"> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="21%"> Number of Options </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="16%">   Vested </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="20%"> Exercise Price </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="43%"> Expiry Date </td> </tr> <tr style="page-break-inside: avoid;"> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="top" width="21%"> 160,000 </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="top" width="16%"> 160,000 </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="top" width="20%"> $4.83 </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="43%"> March 1, 2020 </td> </tr> <tr style="page-break-inside: avoid;"> <td style="width: 21%;" align="right" valign="top">   </td> <td style="width: 21%;" align="right" valign="top">   </td> <td style="width: 21%;" align="right" valign="top"> . </td> <td style="width: 21%;" align="right" valign="top">   </td> </tr> </table> We use the Black-Scholes pricing model to estimate the fair value of stock-based awards. The expected volatilities are based on the historical volatility of our stock price. Historical data is used to estimate option exercises and employee terminations within the valuation model. The expected term of options granted is based on historical exercise patterns of employees and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U S Treasury yield curve in effect at the time of the grant. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. <h2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 0in"> As of September 30, 2012 the aggregate intrinsic value of options outstanding and options exercisable were both zero since the closing price of our common shares on that date of $3.25 were less than the exercise price. </h2>

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<table style="width: 409.899pt; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="top" width="36%">   </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="16%"> Number of Options </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="24%"> Weighted Average Exercise Price </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="top" width="24%"> Weighted Average Remaining Life </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="36%"> Outstanding, beginning of year </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> 160,000 </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> $4.83 </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> 7.67 Years </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Exercised </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Granted </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%">   </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Directors/Employees </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Consultants </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Sub-total granted </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Expired/cancelled </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> - </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%">   </td> <td style="border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="24%">   </td> </tr> <tr> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="36%"> Outstanding, end of period </td> <td style="border-bottom: 2pt double windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="top" width="16%"> 160,000 </td> <td style="border-bottom: 2pt double windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> $4.83 </td> <td style="border-bottom: 2pt double windowtext; padding: 0in 5.4pt; text-align: center;" align="right" valign="bottom" width="24%"> 7.42 Years </td> </tr> <tr style="height: 16.05pt;"> <td style="border-bottom: windowtext 2.25pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 16.05pt; padding-top: 0in;" valign="bottom" width="36%"> Options exercisable, end of period </td> <td style="border-bottom: 2.25pt double windowtext; padding: 0in 5.4pt; height: 16.05pt; text-align: center;" align="right" valign="bottom" width="16%"> 160,000 </td> <td style="border-bottom: 2.25pt double windowtext; padding: 0in 5.4pt; height: 16.05pt; text-align: center;" align="right" valign="bottom" width="24%"> $4.83 </td> <td style="border-bottom: 2.25pt double windowtext; padding: 0in 5.4pt; height: 16.05pt; text-align: center;" align="right" valign="bottom" width="24%"> 7.42 Years </td> </tr> </table>

160000

4.83

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4.83

P7Y153D

<table style="width: 359.549pt; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0"> <tr style="page-break-inside: avoid;"> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="21%"> Number of Options </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="16%">   Vested </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="20%"> Exercise Price </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; border-top: windowtext 2pt double; padding-top: 0in;" valign="bottom" width="43%"> Expiry Date </td> </tr> <tr style="page-break-inside: avoid;"> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="top" width="21%"> 160,000 </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="top" width="16%"> 160,000 </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="top" width="20%"> $4.83 </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="43%"> March 1, 2020 </td> </tr> <tr style="page-break-inside: avoid;"> <td style="width: 21%;" align="right" valign="top">   </td> <td style="width: 21%;" align="right" valign="top">   </td> <td style="width: 21%;" align="right" valign="top"> . </td> <td style="width: 21%;" align="right" valign="top">   </td> </tr> </table>

160000

4.83

2020-03-01

Note 3 — Income per Common Share Basic income per common share is calculated by dividing the income for the period by the weighted-average number of common shares outstanding during the period. Diluted income per common share is calculated using the treasury stock method.  Under the treasury stock method, the weighted average number of common shares outstanding used for the calculation of diluted income per share assumes that the proceeds to be received on the exercise of dilutive stock options and warrants are used to repurchase common shares at the average market price during the period.

Note 4 — Inventories  <table style="WIDTH: 474.417pt; BORDER-COLLAPSE: collapse; HEIGHT: 181px; MARGIN-LEFT: 35.55pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="53%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="bottom" width="27%"> As at September 30, 2012 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="bottom" width="27%"> As at June 30, 2012 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Raw materials </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> $ 260,615 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> $ 295,742 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Work in progress </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 28,328 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 29,005 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Finished goods </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 315,092 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 262,928 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Inventory Gross </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 604,035 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 587,675 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Less allowance for obsolescence </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 13,277 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 12,943 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Inventory Net </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> $ 590,758 </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> $ 574,732 </td> </tr> </table>

<table style="WIDTH: 474.417pt; BORDER-COLLAPSE: collapse; HEIGHT: 181px; MARGIN-LEFT: 35.55pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="53%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="bottom" width="27%"> As at September 30, 2012 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="bottom" width="27%"> As at June 30, 2012 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Raw materials </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> $ 260,615 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> $ 295,742 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Work in progress </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 28,328 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 29,005 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Finished goods </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 315,092 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 262,928 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Inventory Gross </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 604,035 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 587,675 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Less allowance for obsolescence </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> 13,277 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> 12,943 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="53%"> Inventory Net </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="27%" align="right"> $ 590,758 </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="27%" align="right"> $ 574,732 </td> </tr> </table>

260615

295742

28328

29005

315092

262928

604035

587675

13277

12943

Note 5 — Supplemental Disclosure with Respect to Cash Flows <table style="width: 376.049pt; border-collapse: collapse; margin-left: 6.75pt; margin-right: 6.75pt;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 51.55pt;"> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 51.55pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="top" width="58%">   </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 51.55pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="21%">   Three Months Ended September 30, 2012 </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 51.55pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="21%">   Three Months Ended September 30, 2011 </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="58%"> Cash provided by (used in): </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="21%">   </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="21%">   </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="58%"> Accounts and royalties and other receivables </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 139,891  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 484,086  </td> </tr> <tr style="height: 15.85pt;"> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Inventories </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (16,026) </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (8,281) </td> </tr> <tr style="height: 15.85pt;"> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Prepaid expenses and other assets </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (57,106) </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (67,505) </td> </tr> <tr style="height: 15.85pt;"> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Accounts payable and accrued liabilities </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> 94,153  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (202,372) </td> </tr> <tr style="height: 15.85pt;"> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Income taxes payable </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> 88,977  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> 110,582  </td> </tr> <tr> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="58%"> Change in working capital items </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 249,889  </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 316,510  </td> </tr> </table>

<table style="width: 376.049pt; border-collapse: collapse; margin-left: 6.75pt; margin-right: 6.75pt;" border="0" cellspacing="0" cellpadding="0"> <tr style="height: 51.55pt;"> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 51.55pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="top" width="58%">   </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 51.55pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="21%">   Three Months Ended September 30, 2012 </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 51.55pt; border-top: windowtext 2.25pt double; padding-top: 0in;" valign="bottom" width="21%">   Three Months Ended September 30, 2011 </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="58%"> Cash provided by (used in): </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="21%">   </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="21%">   </td> </tr> <tr> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="bottom" width="58%"> Accounts and royalties and other receivables </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 139,891  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 484,086  </td> </tr> <tr style="height: 15.85pt;"> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Inventories </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (16,026) </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (8,281) </td> </tr> <tr style="height: 15.85pt;"> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Prepaid expenses and other assets </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (57,106) </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (67,505) </td> </tr> <tr style="height: 15.85pt;"> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Accounts payable and accrued liabilities </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> 94,153  </td> <td style="padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> (202,372) </td> </tr> <tr style="height: 15.85pt;"> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" valign="bottom" width="58%"> Income taxes payable </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> 88,977  </td> <td style="border-bottom: windowtext 1pt solid; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; height: 15.85pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> 110,582  </td> </tr> <tr> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" valign="top" width="58%"> Change in working capital items </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 249,889  </td> <td style="border-bottom: windowtext 2pt double; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in;" align="right" valign="bottom" width="21%"> $ 316,510  </td> </tr> </table>

139891

484086

-16026

-8281

-57106

-67505

94153

-202372

88977

110582

Note 6 — Revenue Information All of our assets and operations are located in the United States in one business segment. Our revenues are derived from royalty income received from our exclusive agreement with Bausch + Lomb Incorporated (“Bausch + Lomb”), for the use of our patented multifocal designs and technology, and from sales from our specialty optical lens business, which manufactures and distributes optical products that use our proprietary design and manufacturing technology. Sales from our specialty optical lens business come from the following lens categories, for the three months ended September 30, 2012 and 2011: <table style="WIDTH: 356.399pt; BORDER-COLLAPSE: collapse; MARGIN-LEFT: 6.75pt; MARGIN-RIGHT: 6.75pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="39%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="7%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="bottom" width="24%"> Three Months Ended September 30, 2012 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="7%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="23%"> Three Months Ended September 30, 2011 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Disposable lenses </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 820,725 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="23%" align="right"> 899,583 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Custom soft lenses </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 471,604 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="23%" align="right"> 408,119 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Gas permeable lenses </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 81,766 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="23%" align="right"> 98,305 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Replacement and other lenses </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 135,559 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="23%" align="right"> 170,523 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="39%"> Total sales </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 1,509,654 </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="23%" align="right"> 1,576,530 </td> </tr> </table>

<table style="WIDTH: 356.399pt; BORDER-COLLAPSE: collapse; MARGIN-LEFT: 6.75pt; MARGIN-RIGHT: 6.75pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="39%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="7%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="bottom" width="24%"> Three Months Ended September 30, 2012 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="7%">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 2.25pt double; PADDING-TOP: 0in" valign="top" width="23%"> Three Months Ended September 30, 2011 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Disposable lenses </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 820,725 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="23%" align="right"> 899,583 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Custom soft lenses </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 471,604 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="23%" align="right"> 408,119 </td> </tr> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Gas permeable lenses </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 81,766 </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="23%" align="right"> 98,305 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="39%"> Replacement and other lenses </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 135,559 </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right">   </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="top" width="23%" align="right"> 170,523 </td> </tr> <tr> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="39%"> Total sales </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="24%" align="right"> 1,509,654 </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="7%" align="right"> $ </td> <td style="BORDER-BOTTOM: windowtext 2pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0in" valign="bottom" width="23%" align="right"> 1,576,530 </td> </tr> </table>

820725

899583

471604

408119

81766

98305

135559

170523

Note 7 — Term Loan, Line of Credit and Interest Rate Swap On May 23, 2012, the Company closed on a new $3,500,000 5-year term loan facility and a $1,500,000 line of credit with Hancock Bank, which replaced the term loan facility and line of credit then in place with Regions Bank. Costs related to the Hancock Bank term loan facility and line of credit, were $59,265, which are amortized over the life of the 5-year term loan facility. The minimum monthly principal payments under the Hancock Bank term loan facility are $58,333, plus accrued interest. The Hancock Bank term loan and line of credit both bear interest at a floating rate of 30-day LIBOR plus 3.00%. Monthly interest only payments are due under the Hancock Bank line of credit, with the maximum borrowings at any time not to exceed the lesser of (i) $1,500,000 or (ii) a sum equal to 85% of Eligible royalty receivables, plus 75% of Eligible Accounts Receivables plus 50% of Eligible Raw Material and Finished Goods Inventory. The maximum borrowing amount under this line of credit facility at September 30, 2012 was $1,034,000. The Company expects to extend this line of credit which expires on February 1, 2013. The term loan and the line of credit are secured by a security interest in favor of Hancock Bank in our inventory, accounts receivable, general intangibles, cash and principal United States patent. Under the term loan facility and the line of credit, the Company is required to meet customary covenants regarding, among other things, tangible net worth, fixed charge coverage, dividend distributions and the requirement of lender consent for significant transactions such as mergers, acquisitions, dispositions and other financings. The Company was in compliance with all financial covenants and had no outstanding balance on the Hancock Bank line of credit, and $3,266,667 outstanding on the term loan at September 30, 2012.

3500000

1500000

59265

58333

30-day LIBOR

0.0300

0.85 0.75 0.50

1034000

3266667

Note 8 — Recent Accounting Standards Recent codified pronouncements by the FASB are not believed by management to have a material impact on the Company’s present or future financial statements.

Note 9 — Subsequent Event On November 1, 2012, our Board of Directors declared our regular quarterly cash dividend, at the rate of $0.045 per common share, payable November 23, 2012, to stockholders of record at the close of business on November 12, 2012. This is the 25rd consecutive quarterly cash dividend declared.

0.045

2012-11-23