HYDROMER,
INC.
(Exact
name of registrant as specified in its charter)
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New
Jersey
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22-2303576
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(State
of incorporation)
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(I.R.S.
Employer
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Identification No.) |
35
Industrial Pkwy,
Branchburg, New Jersey
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08876-3424
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code:
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(908)
722-5000
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Securities
registered pursuant to Section 12 (b) of the Act: None
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Securities
registered pursuant to Section 12 (g) of the Act:
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Class
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Outstanding
at March
31, 2008
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Common
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4,772,318
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Page
No.
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||
Part I - Financial Information | ||
#
1 Consolidated Financial Statements
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||
Balance
Sheets - March 31, 2008 & June 30, 2007
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2
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Statements
of Income for the three months and nine months ended
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||
March
31, 2008 and 2007
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3
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Statements
of Cash Flows for the nine months ended
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||
March
31, 2008 and 2007
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4
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Notes
to Financial Statements
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5
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#
2 Management's Discussion and Analysis of the Financial
Condition
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||
and
Results of Operations
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6
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#
3 Controls and Procedures
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7
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Part II - Other Information | ||
#
1 Legal Proceedings
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N/A
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#
2 Change in Securities
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N/A
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#
3 Default of Senior Securities
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N/A
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#
4 Submission of Motion to Vote of Security
Holders
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N/A
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#
5 Other Information
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N/A
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#
6 Exhibits and Reports on form 8-K
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7
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EXHIBIT
INDEX
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|||
Exhibit
No.
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Description
of Exhibit
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||
33.1
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9
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||
33.2
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10
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||
99.1
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|||
11
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|||
99.2
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|||
11
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March
31,
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June
30,
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|||||||
2008
|
2007
|
|||||||
UNAUDITED
|
AUDITED
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|||||||
Assets
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash
equivalents
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$ | 145,074 | $ | 146,338 | ||||
Trade receivables less allowance for doubtful
accounts of $67,643 and $62,044 as of March
31, 2008 and
June
30, 2007, respectively
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975,488 | 1,121,752 | ||||||
Inventory
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842,561 | 956,711 | ||||||
Prepaid expenses
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159,707 | 120,448 | ||||||
Deferred tax asset
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8,976 | 8,976 | ||||||
Other
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7,161 | 13,484 | ||||||
Total
Current Assets
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2,138,967 | 2,367,709 | ||||||
Property
and equipment, net
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3,339,382 | 3,295,992 | ||||||
Deferred
tax asset, non-current
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654,601 | 609,730 | ||||||
Intangible
assets, net
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931,755 | 910,303 | ||||||
Total
Assets
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$ | 7,064,705 | $ | 7,183,734 | ||||
Liabilities
and Stockholders’ Equity
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||||||||
Current
Liabilities:
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||||||||
Accounts payable
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$ | 513,224 | $ | 537,338 | ||||
Short-term borrowings
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457,397 | 514,096 | ||||||
Accrued expenses
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280,188 | 358,301 | ||||||
Current portion of capital lease
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12,772 |
-
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||||||
Current portion of deferred payable
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82,751 | 32,215 | ||||||
Current portion of mortgage payable
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226,487 | 215,394 | ||||||
Income
tax payable
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5,286 | 9,160 | ||||||
Total
Current Liabilities
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1,578,105 | 1,666,504 | ||||||
Deferred
tax liability
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261,958 | 261,958 | ||||||
Long-term
portion of capital lease
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69,328 | - | ||||||
Long-term
portion of deferred revenue
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50,030 | 62,978 | ||||||
Long-term
portion of mortgage payable
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1,706,549 | 1,878,040 | ||||||
Total
Liabilities
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3,665,970 | 3,869,480 | ||||||
Stockholders’
Equity
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||||||||
Preferred stock – no par value, authorized 1,000,000 shares, no shares
issued and outstanding
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- | - | ||||||
Common stock – no par value, authorized 15,000,000 shares; 4,783,235
shares issued and
4,772,318 shares
outstanding as of March 31, 2008 and 4,698,825 shares issued and
4,687,908
shares
outstanding
as of June 30, 2007
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3,721,815 | 3,643,815 | ||||||
Contributed capital
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633,150 | 633,150 | ||||||
Accumulated deficit
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(950,090 | ) | (956,571 | ) | ||||
Treasury stock, 10,917 common shares at cost
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(6,140 | ) | (6,140 | ) | ||||
Total
Stockholders’ Equity
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3,398,735 | 3,314,254 | ||||||
Total
Liabilities and Stockholders’ Equity
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$ | 7,064,705 | $ | 7,183,734 |
Three
Months Ended
March
31,
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Nine
Months Ended
March
31,
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|||||||||||||||
2008
UNAUDITED
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2007
UNAUDITED
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2008
UNAUDITED
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2007
UNAUDITED
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|||||||||||||
Revenues
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||||||||||||||||
Sale
of products
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$ | 1,167,022 | $ | 1,006,875 | $ | 3,306,283 | $ | 3,531,205 | ||||||||
Service
revenues
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545,831 | 394,857 | 1,330,150 | 1,124,759 | ||||||||||||
Royalties
and Contract Revenues
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392,884 | 395,981 | 1,187,043 | 1,253,409 | ||||||||||||
Total
Revenues
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2,105,737 | 1,797,713 | 5,823,476 | 5,909,373 | ||||||||||||
Expenses
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||||||||||||||||
Cost
of Sales
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829,127 | 773,469 | 2,339,935 | 2,369,712 | ||||||||||||
Operating
Expenses
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1,191,447 | 1,310,201 | 3,400,334 | 3,855,143 | ||||||||||||
Other
Expenses
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36,133 | 43,711 | 117,173 | 131,229 | ||||||||||||
Provision
for (Benefit from) Income Taxes
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4,908 | (109,302 | ) | (40,447 | ) | (138,199 | ) | |||||||||
Total
Expenses
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2,061,615 | 2,018,079 | 5,816,995. | 6,217,885 | ||||||||||||
Net
Income (Loss)
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$ | 44,122 | $ | (220,366 | ) | $ | 6,481 | $ | (308,512 | ) | ||||||
Income
(Loss) Per Common Share
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$ | 0.01 | $ | (0.05 | ) | $ | 0.00 | $ | (0.07 | ) | ||||||
Weighted
Average Number of
Common
Shares Outstanding
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4,772,318 | 4,657,120 | 4,740,884 | 4,648,435 |
Nine
Months Ended
March
31,
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||||||||
2008
UNAUDITED
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2007
UNAUDITED
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|||||||
Cash
Flows From Operating Activities:
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||||||||
Net
Income (Loss)
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$ | 6,481 | $ | (308,512 | ) | |||
Adjustments
to reconcile net income (loss) to net cash provided by (used for)
operating activities
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||||||||
Depreciation
and amortization
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317,325 | 302,171 | ||||||
Deferred
income taxes
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(44,871 | ) | (148,543 | ) | ||||
Changes
in Assets and Liabilities:
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||||||||
Trade
receivables
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146,264 | 424,994 | ||||||
Inventory
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114,150 | 48,693 | ||||||
Prepaid
expenses
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(39,259 | ) | (45,180 | ) | ||||
Other
assets
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6,323 | 129,455 | ||||||
Accounts
payable and accrued
liabilities
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(102,227 | ) | (131,934 | ) | ||||
Deferred
income
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37,588 | (122,994 | ) | |||||
Income
taxes
payable
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(3,874 | ) | 45,657 | |||||
Net
Cash Provided by Operating Activities
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437,900 | 193,807 | ||||||
Cash
Flows From Investing Activities:
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||||||||
Cash
purchases of property and equipment
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(139,601 | ) | (83,614 | ) | ||||
Cash
payments on patents and trademarks
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(160,466 | ) | (190,908 | ) | ||||
Cash
purchases of short-term investments
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-. | -. | ||||||
Maturity
of short-term investments
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- | - | ||||||
Net
Cash Used for Investing Activities
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(300,067 | ) | (274,522 | ) | ||||
Cash
Flows From Financing Activities:
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||||||||
Net
borrowings against Line of Credit
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(56,699 | ) | 43,909 | |||||
Repayment
of long-term borrowings
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(160,398 | ) | (150,695 | ) | ||||
Proceeds
from the issuance of common stock
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78,000 | -. | ||||||
Net
Cash Used for Financing Activities
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(139,097 | ) | (106,786 | ) | ||||
Net
Decrease in Cash and Cash Equivalents:
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(1,264 | ) | (187,501 | ) | ||||
Cash
and Cash Equivalents at Beginning of Period
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146,338 | 434,865 | ||||||
Cash
and Cash Equivalents at End of Period
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$ | 145,074 | $ | 247,364 |
Supplemental
Non-Cash Investing & Financing Activities:
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||||||||
Equipment
acquired under Capital Lease
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$ | 80,747 | - |
Polymer
Research
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Medical
Products
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Corporate
Overhead
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Total
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|||||||||||||
2008
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||||||||||||||||
Revenues
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$ | 3,196,180 | $ | 2,627,296 | $ | 5,823,476 | ||||||||||
Expenses
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(2,384,019 | ) | (2,308,429 | ) | $ | (1,164,994 | ) | (5,857,442 | ) | |||||||
Pre-tax
Income (Loss)
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$ | 812,161 | $ | 318,867 | $ | (1,164,994 | ) | $ | (33,966 | ) | ||||||
2007
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||||||||||||||||
Revenues
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$ | 3,264,708 | $ | 2,644,665 | $ | 5,909,373 | ||||||||||
Expenses
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(2,813,142 | ) | (2,425,388 | ) | $ | (1,117,554 | ) | (6,356,084 | ) | |||||||
Pre-tax
Income (Loss)
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$ | 451,566 | $ | 219,277. | $ | (1,117,554 | ) | $ | (446,711 | ) | ||||||
2008
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2007
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Domestic
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82%
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86%
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Foreign
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18%
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14%
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a)
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Exhibits
– none
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b)
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Reports
on form 8-K – There were no Form 8-K’s filed during the quarter ending
March 31,
2008.
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HYDROMER,
INC.
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/s/
Robert
Y.
Lee,
VP
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Robert
Y. Lee
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Chief
Financial Officer
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DATE:
May 13, 2008
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