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x
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Ohio
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31-1210318
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(State
or other jurisdiction of
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(I.R.S.
Employer
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incorporation
or organization)
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Identification
No.)
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Page
No.
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PART
I.
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FINANCIAL
INFORMATION
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Item
1.
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Financial
Statements.
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Balance
Sheets as of September 30, 2007 (unaudited)
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and
December 31, 2006
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3
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Statements
of Operations for the Three Months and Nine Months
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Ended
September 30, 2007 and 2006 (unaudited)
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5
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Statements
of Cash Flows for the Nine Months
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Ended
September 30, 2007 and 2006 (unaudited)
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6
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Notes
to Financial Statements (unaudited)
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8
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Item
2.
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Management's
Discussion and Analysis of Financial Condition and
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Results
of Operations.
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14
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Item
3.
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Controls
and Procedures.
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19
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PART
II.
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OTHER
INFORMATION
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Item
1.
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Legal
Proceedings.
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N/A
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Item
2.
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Unregistered
Sales of Equity Securities and Use of Proceeds.
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N/A
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Item
3.
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Defaults
Upon Senior Securities.
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N/A
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Item
4.
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Submission
of Matters to a Vote of Security Holders.
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20
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Item
5.
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Other
Information.
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N/A
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Item
6.
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Exhibits.
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20
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Signatures.
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21
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| ITEM 1. |
FINANCIAL
STATEMENTS
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ASSETS
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|||||||
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September
30,
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December
31,
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2007
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2006
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(UNAUDITED)
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CURRENT
ASSETS
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|||||||
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Cash
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$
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1,517,031
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$
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648,494
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Accounts
receivable
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Trade,
less allowance for doubtful accounts of $24,700 and $25,000
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289,548
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439,946
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Contract
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67,598
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52,760
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Other
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5,000
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-
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Inventories
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1,496,006
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1,189,732
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Prepaid
expenses
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30,395
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47,466
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Total
current assets
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3,405,578
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2,378,398
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PROPERTY
AND EQUIPMENT,
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AT
COST
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Machinery
and equipment
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3,354,043
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2,697,368
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Furniture
and fixtures
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72,464
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23,643
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Leasehold
improvements
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301,551
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299,551
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Construction
in progress
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574,904
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95,590
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4,302,962
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3,116,152
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Less
accumulated depreciation
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(2,144,242
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)
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(2,012,312
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)
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2,158,720
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1,103,840
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OTHER
ASSETS
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Deposits
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24,728
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289,816
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Intangibles
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28,578
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30,894
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Total
other assets
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53,306
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320,710
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TOTAL
ASSETS
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$
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5,617,604
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$
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3,802,948
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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September
30,
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December
31,
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2007
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2006
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(UNAUDITED)
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CURRENT
LIABILITIES
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Capital
lease obligation, current portion
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$
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256,896
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$
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70,799
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Accounts
payable
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611,577
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297,161
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Accrued
contract expenses
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30,494
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27,258
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Accrued
personal property taxes
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13,226
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22,500
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Customer
deposits
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875,541
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526,581
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Accrued
expenses and other
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142,708
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208,494
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Total
current liabilities
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1,930,442
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1,152,793
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CAPITAL
LEASE OBLIGATION, NET OF
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CURRENT
PORTION
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919,935
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145,693
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COMMITMENTS
AND CONTINGENCIES
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-
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-
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SHAREHOLDERS'
EQUITY
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Convertible
preferred stock, Series B, 10% cumulative, nonvoting
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no
par value, $10 stated value, optional redemption at 103%;
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24,566
and 25,185 issued and outstanding respectively
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369,719
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360,146
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Common
stock, no par value, authorized 15,000,000 shares;
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3,474,338
and 3,432,915 shares issued and outstanding respectively
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9,061,378
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9,007,817
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Additional
paid-in capital
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989,674
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995,586
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Accumulated
deficit
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(7,653,544
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)
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(7,859,087
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)
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2,767,227
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2,504,462
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TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
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$
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5,617,604
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$
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3,802,948
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THREE
MONTHS ENDED SEPT. 30,
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NINE
MONTHS ENDED SEPT. 30,
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2007
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2006
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2007
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2006
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TOTAL
REVENUE
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2,589,938
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2,064,497
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8,447,689
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4,423,554
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TOTAL
COST OF REVENUE
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2,100,305
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1,595,490
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6,986,308
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3,401,034
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GROSS
PROFIT
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489,633
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469,007
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1,461,381
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1,022,520
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GENERAL
A | |||||||||||||