"Engineering and product development expenses of $249,562 for the quarter represent a 109%
increase from $119,595 the prior year. For the nine month period, expenses of $589,539 are 52%higher than $386,994 in the previous year. In both cases, these increases are due to expensing
costs in the third quarter related to prior modifications to a product, and shifting engineering
resources to near term sustaining engineering efforts. These expenses are not expected to
continue at the same level given upcoming product development projects that meet the strict
criteria for capitalization."