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The fiscal year for ClearOne Communications, Inc. and its subsidiaries (collectively, ClearOne or the Company) is the 12 months ending on December 31st.  The consolidated financial statements include the accounts of ClearOne and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.   The accompanying interim consolidated financial statements for the three months ended March 31, 2012 and 2011 respectively have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and are not audited. Certain information and footnote disclosures, that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been either condensed or omitted in accordance with SEC rules and regulations. The accompanying consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of March 31, 2012 and December 31, 2011, the results of operations for the three months ended March 31, 2012 and 2011, and the statements of cash flows for the three months ended March 31, 2012 and 2011. The results of operations for the three months ended March 31, 2012 and 2011 are not necessarily indicative of the results for a full-year period.  These interim consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC.

2.  Business Combination   On February 16, 2012, the Company completed the acquisition of the video conferencing business of Israel based VCON Video Conferencing, Ltd. (VCON) through an asset purchase agreement. VCON is a pioneer in software based video conferencing solutions with product offerings that include group video conferencing endpoints, desktop video conferencing endpoints, video conferencing infrastructure solutions and software development kits. This acquisition and the combination of streaming and digital signage technologies will provide us with complimentary technology opportunities allowing us to enter new growth markets.   Pursuant to the asset purchase agreement, the Company paid initial consideration of $4,632 in cash. This initial consideration is subject to a final working capital adjustment.   The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed. The Company believes that such information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize those fair values. The measurement period for purchase price allocation ends as soon as information on the facts and circumstances becomes available, but will not exceed twelve months from the date of acquisition. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to intangible assets and possible allocation to goodwill, retroactive to the period in which the acquisition occurred. Therefore, the provisional measurements of fair value reflected are subject to change and such changes could be significant.   The fair value of identified assets and liabilities acquired and goodwill was as follows:   <table width="318" style="MARGIN:auto auto auto 5.4pt; WIDTH:238.5pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Inventory</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $       320 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Property and equipment</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">               34 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Product warranty liability</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">               (8)</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Tradename</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">             500 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Patents and technological know-how</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">          2,300 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Proprietary software</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">             500 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> In-process research and development</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">             200 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in"> Goodwill</td> <td width="84" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">             786 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:175.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Cash paid</td> <td width="84" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:63pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $   4,632 </td></tr></table>     The Company incurred $187 towards acquisition related expenses, all of which are categorized under General and administrative expenses in the Consolidated Statement of Operations for the period ended March 31, 2012.   Supplemental Pro Forma information   1)       Revenue and net loss from VCON business from February 16, 2012 to March 31, 2012 was $77 and ($152) respectively.   2)       Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2011:   <table width="541" style="MARGIN:auto auto auto 36.7pt; WIDTH:541px; BORDER-COLLAPSE:collapse; HEIGHT:106px" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="264" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:2.75in; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="201" colspan="3" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.6pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Three months ended March 31,</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="264" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:2.75in; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 2012</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 2011</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="264" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:2.75in; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Revenue</td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">   $ 10,367</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">   $10,803</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="264" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:2.75in; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Earnings</td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">          409</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">          647</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="264" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:2.75in; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Basic and diluted earnings per common share</td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">          0.04</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">         0.07</td></tr></table>   3)       There were no material, nonrecurring pro forma adjustments directly attributable to the acquisition included in this supplemental Pro Forma information.

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9. Commitments and Contingencies The Company entered in to a consulting arrangement for a period of 12 months.  The consulting arrangement provides for a fixed fee of approximately $180 with additional maximum incentive-based fees of approximately $20 associated with accomplishing specific milestones.

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5.  Share-based Compensation   Share-based compensation expense has been allocated as follows:   <table width="423" style="MARGIN:auto auto auto 5.4pt; WIDTH:317.1pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="201" colspan="3" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.6pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Three months ended March 31,</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 2012</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 2011</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Cost of goods sold</td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $               1</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                -</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Sales and marketing</td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   13</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      4</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Research and development</td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      7</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      4</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> General and administrative</td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   30</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   31</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="201" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:150.8pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="21" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:15.7pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $             51</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $             39</td></tr></table>   As of March 31, 2012 the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $530. During the three months ended March 31, 2012 and 2011, we granted 30,000 and 0 stock options respectively. We use judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables.  These variables include the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, the expected dividends of the awards, and an estimate of the amount of awards that are expected to be forfeited.  We use the Black-Scholes option pricing model to determine the fair value of share-based payments granted under ASC Topic 718.

Q1 2012 2012-03-31 10-Q 0000840715 9098152 Yes Smaller Reporting Company 27894700 CLEARONE COMMUNICATIONS INC No No

-1472000

-1505000

1153000

1939000

6302000

6108000

1221000

727000

8. Income Taxes The total outstanding balance for liabilities related to unrecognized tax benefits at March 31, 2012 was approximately $563, of which $35 was associated with interest and penalties. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision.   Accrued liabilities as of March 31, 2012 and December 31, 2011 include accrued income taxes payable of $211 and $300, respectively.

-214000

90000

2690000

6063000

3.  Goodwill and Intangibles   Goodwill   The goodwill of $786 related to the acquisition of VCON is composed of expected synergies in utilizing VCON technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition.   The goodwill balance of $786 related to the acquisition of VCON business is deductible for tax purposes.   Intangible Assets   Intangible assets as of March 31, 2012 and December 31, 2011 consisted of the following:   <table width="801" style="MARGIN:auto auto auto 5.4pt; WIDTH:801px; BORDER-COLLAPSE:collapse; HEIGHT:232px" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="88" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Estimated useful lives</td> <td width="104" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> As of March 31, 2012</td> <td width="104" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> As of December 31, 2011</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Tradename</td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 7 years</td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $             935 </td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $             435 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Patents and technological Know-how</td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 10 years</td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                 4,370 </td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                 2,070 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Proprietary software</td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 3 to 5 years</td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                    894 </td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                    394 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> In-process research and development</td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Indefinite</td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                    759 </td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                    559 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Other</td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 5</td> <td width="104" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      49 </td> <td width="104" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      49 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                 7,007 </td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                 3,507 </td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Accumulated Amortization</td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                  (944)</td> <td width="104" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                  (817)</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="272" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:203.8pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="88" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:65.8pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="104" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $          6,063 </td> <td width="104" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:78.3pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $          2,690 </td></tr></table>   During the three months ended March 31, 2012 and 2011, amortization of intangible assets were $127 and $88, respectively.   The estimated future amortization expense of intangible assets is as follows:   <table width="294" style="MARGIN:auto auto auto 5.4pt; WIDTH:294px; BORDER-COLLAPSE:collapse; HEIGHT:209px" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Years ending December 31,</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                             2012</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $     635</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                             2013</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">           799</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                             2014</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">           782</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                             2015</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">           598</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                             2016</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">           560</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                             2017</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">           508</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   Thereafter</td> <td width="70" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">        1,422</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="70" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:52.8pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $  5,304</td></tr></table>

12565000

14475000

4.  Inventories   Inventories, net of reserves, consisted of the following:   <table width="411" style="MARGIN:auto auto auto 5.4pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> As of March 31, 2012</td> <td width="118" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> As of December 31, 2011</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Current:</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Raw materials</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                   927</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                1,091</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Finished goods</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                    13,548</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                    11,474</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $              14,475</td> <td width="118" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $              12,565</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Long-term:</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Raw materials</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                   827</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                   444</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:12.75pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Finished goods</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      1,622</td> <td width="118" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; HEIGHT:12.75pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                      1,461</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:13.5pt"> <td width="174" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:130.5pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="118" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                2,449</td> <td width="118" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; WIDTH:88.8pt; PADDING-RIGHT:5.4pt; BACKGROUND:#b7d2e3; HEIGHT:13.5pt; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $                1,905</td></tr></table>   Long-term inventory represents inventory held in excess of our current requirements based on our recent sales and forecasted level of sales. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale.   Current finished goods include consigned inventory in the amounts of approximately $1,441 and $1,199 as of March 31, 2012 and December 31, 2011, respectively. Consigned inventory represents inventory at distributors and other customers where revenue recognition criteria have not been achieved.   During the three months ended March 31, 2012, losses amounting to $90 were incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory.

1905000

2449000

21000

0000

2199000

-1409000

-175000

-4697000

812000

453000

2045000

-6106000

1210000

711000

41000

67000

11000

16000

548000

563000

0000

-4632000

740000

1846000

21000

0000

-0000

250000

7. Proceeds from litigation During the three months ended March 31, 2011, $250 was received as a settlement of amounts due from a defendant in our litigation related to the Theft of ClearOnes Intellectual Property and related cases described in detail in Form 10-K for the year ended  December 31, 2011.

2338000

2210000

-409000

-274000

-58000

-59000

-175000

-65000

8457000

7100000

-1637000

-2008000

-418000

35000

10701000

10154000

-1983000

-2134000

6.  Shareholders Equity   The following table summarizes the change in shareholders equity during the three months ended March 31, 2012 and 2011, respectively:   <table width="451" style="MARGIN:auto auto auto 5.4pt; WIDTH:337.9pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="201" colspan="3" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:150.6pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Three months ended March 31,</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 2012</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:windowtext 1pt solid; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> 2011</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Balance at the beginning of the period</td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $     39,664</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $     31,735</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Net income during the period</td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                 453</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                 812</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Stock based compensation</td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   51</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   39</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Exercise of stock options</td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                       -</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">                   21</td></tr> <tr style="PAGE-BREAK-INSIDE:avoid; HEIGHT:0.1in"> <td width="234" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:175.5pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> Balance at end of the period</td> <td width="16" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.8pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top">  </td> <td width="93" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $     40,168</td> <td width="15" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:11.1pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"></td> <td width="93" style="BORDER-BOTTOM:windowtext 2.25pt double; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0.7pt; WIDTH:69.75pt; PADDING-RIGHT:0.7pt; BACKGROUND:#b7d2e3; HEIGHT:0.1in; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom">    $     32,607</td></tr></table>

39000

51000

10. Subsequent Events   The Company evaluated its consolidated financial statements as of and for the three months ended March 31, 2012 for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent event which would require recognition or disclosure in the financial statements.

49559000

49751000

41432000

37023000

8752000

8405000

9895000

9583000

49559000

49751000

5092000

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