HemoSense Reports Fiscal Fourth Quarter 2006 Revenue Up 45%

  
    
  
  
    
      HemoSense, Inc. (AMEX:HEM) – a medical device 
      company that develops, manufactures and sells easy-to-use, handheld 
      blood coagulation monitoring systems for use by patients and healthcare 
      professionals in the management of warfarin medication – 
      today reported financial results for the three months and year ended 
      September 30, 2006.
    
    
      
        Total revenue for the fiscal 2006 fourth quarter was $4.2 million, an 
        increase of 45% from total revenue of $2.9 million in the fiscal 2005 
        fourth quarter. Domestic revenue was $3.4 million and international 
        revenue was $773,000, representing increases of 58% and 8%, 
        respectively, compared with the fiscal 2005 fourth quarter. Total 
        revenue included $813,000 in revenue for INRatio® 
        meters and accessories, a 35% decline from the fiscal 2005 fourth 
        quarter, and $3.4 million in revenue for INRatio test strips, an 
        increase of 105% from the fiscal 2005 fourth quarter. Total revenue 
        for the fourth quarter of fiscal 2006 was negatively impacted by the 
        timing of significant orders, seasonality in Europe, and temporary 
        supplier issues, which caused some orders to be delayed, but which 
        have since been resolved.
      
      
        HemoSense reported a gross profit of $1.2 million for the quarter, or 
        28% of total revenue, up from a gross profit of $352,000, or 12% of 
        total revenue, for the fiscal 2005 fourth quarter. The improvement 
        from the prior year was due primarily to higher unit sales and 
        production volumes of test strips, and to process efficiencies. Gross 
        margin improved five percentage points on a sequential quarter basis, 
        reflecting a modification of the meter placement promotional programs 
        that took place during the second and third quarters of fiscal 2006. 
        These programs contributed to HemoSense achieving double digit market 
        share and being firmly established as the No. 2 player in the domestic 
        point-of-care PT/INR market.
      
      
        Operating expenses for the quarter were $3.6 million, up from $3.0 
        million for the fiscal 2005 fourth quarter, and down from $4.0 million 
        in the fiscal 2006 third quarter.
      
      
        The net loss for the fiscal 2006 fourth quarter decreased to $2.5 
        million from $2.8 million for the fiscal 2005 fourth quarter and $3.1 
        million in the fiscal 2006 third quarter. The net loss per common 
        share was $0.23 for the quarter on 11.2 million weighted-average 
        shares outstanding, compared with $0.30 for the fiscal 2005 fourth 
        quarter on 9.6 million weighted-average shares outstanding. Included 
        in the net loss and the net loss per share for the fourth quarter of 
        fiscal 2006 is a charge of $98,000, or approximately $0.01, 
        respectively, related to stock-based compensation expense pursuant to 
        SFAS No. 123(R).
      
    
    
      “Overall product demand remains strong and we 
      are confident in our ability to grow revenue and continue to gain market 
      share in the rapidly growing PT/INR market,” 
      said Jim Merselis, President and CEO of HemoSense. “In 
      fact, the market demand level to-date in the first quarter of fiscal 
      2007, meaning shipments made so far in the quarter and orders in-house 
      for shipment later, is ahead of the revenue for the entire fourth 
      quarter of fiscal 2006. We are also encouraged with our progress and 
      recent developments. In October, we signed an agreement to supply our 
      INRatio system to all CheckUps medical clinics located in Wal-Mart 
      stores. We also made two new additions to our senior management team, 
      including the appointment of Gordon Sangster as CFO, and Bill Dippel as 
      EVP of Operations and Research & Development.
    
    
      “Additionally, the FDA has required the 
      manufacturer of Coumadin to add a label alerting patients to the 
      potential health risks associated with warfarin when dosage levels are 
      not properly managed,” Mr. Merselis added. “This 
      new labeling further highlights the importance of frequent PT/INR 
      testing to manage dosage levels to ensure warfarin patients’ 
      blood coagulation levels are maintained within their therapeutic range. 
      We continue to work with our manufacturers and distributors to offer 
      warfarin patients convenient and accurate PT/INR testing through our 
      easy-to-use INRatio system.”
    
    
      HemoSense reported cash, cash equivalents and short-term investments of 
      $9.7 million as of September 30, 2006.
    
    
      Year-to-Date Financial Results
    
    
      For the fiscal year ended September 30, 2006, total revenue was $16.3 
      million, an increase of 85% from $8.8 million in fiscal 2005. Fiscal 
      2006 domestic revenue was $13.3 million, an increase of 105% over fiscal 
      2005, and international revenue was $3.0 million, an increase of 30% 
      over the prior fiscal year. Total revenue for fiscal 2006 included $4.7 
      million in meters and accessories revenue and $11.6 million in test 
      strip revenue, up 23% and 134%, respectively, from fiscal 2005.
    
    
      Gross profit for fiscal 2006 was $4.4 million, up from a gross loss of 
      $603,000 in fiscal 2005. Operating expenses were $14.6 million, an 
      increase of 47% compared with operating expenses of $10.0 million in 
      fiscal 2005. The net loss was $10.9 million, compared with $11.7 million 
      for fiscal 2005.
    
    
      Fiscal Year 2007 Financial Guidance
    
    
      HemoSense today introduced financial guidance for its fiscal year ending 
      September 30, 2007. The Company anticipates fiscal 2007 total revenue to 
      be in the range of $23.0 million to $25.0 million, representing growth 
      of 41% to 54%. HemoSense also expects the fiscal 2007 net loss to be in 
      the range of $5.6 million to $6.6 million, which includes $420,000 in 
      stock-based compensation expense. The net loss per common share is 
      expected to be $0.50 to $0.59 based on approximately 11.2 million 
      average common shares outstanding.
    
    
      Conference Call Information
    
    
      Management will host an investment community conference call beginning 
      today at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this 
      announcement and to answer questions.
    
    
      Individuals interested in listening to the conference call may do so by 
      dialing [phone] for domestic callers, or [phone] for 
      international callers. A telephone replay will be available for 48 hours 
      following the conclusion of the call by dialing [phone] for 
      domestic callers, or [phone] for international callers, and 
      entering reservation code 9167445.
    
    
      The live conference call will also be available via the Internet on the 
      Investor Relations section of the Company’s 
      Web site at www.hemosense.com. A 
      recording of the call will be available on the Company’s 
      Web site for 30 days following the completion of the call.
    
    
      About HemoSense
    
    
      HemoSense develops, manufactures and markets easy-to-use, handheld blood 
      coagulation systems for monitoring patients taking warfarin. The 
      HemoSense INRatio® system, used by healthcare 
      professionals and patients themselves, consists of a small monitor and 
      disposable test strips. It provides accurate and convenient measurement 
      of blood clotting time, or PT/INR values. Routine measurements of PT/INR 
      are necessary for the safe and effective management of the patient’s 
      warfarin dosing. INRatio is sold in the United States and 
      internationally. For more information, visit www.hemosense.com.
    
    
      This press release contains forward-looking statements within the 
      meaning of the U.S. Private Securities Litigation Reform Act of 1995. 
      Statements in this press release regarding the Company's business that 
      are not historical facts may be "forward-looking statements" that 
      involve risks and uncertainties. Specifically, forward-looking 
      statements include those relating to executing the Company’s 
      business strategy to increase market penetration and improve revenue, 
      and financial guidance for fiscal 2007, are forward looking statements 
      within the meaning of the Safe Harbor. Forward-looking statements are 
      based on management's current, preliminary, expectations and are subject 
      to risks and uncertainties which may cause the actual results to differ 
      materially from the statements contained herein. The Company’s 
      fiscal 2006 fourth quarter financial results are preliminary and 
      unaudited, and are subject to adjustment. Further information on the 
      Company's business, prior financial results and risk factors are 
      detailed in its filings with the SEC, including its including its Form 
      10-Q for the quarter ended June 30, 2006 filed on August 11, 2006. Undue 
      reliance should not be placed on these forward-looking statements, which 
      speak only as of the date they are made. The Company undertakes no 
      obligation to update publicly any forward-looking statements to reflect 
      new information, events or circumstances after the date they were made, 
      or to reflect the occurrence of unanticipated events.
    
    
      HemoSense® and INRatio® 
      are registered trademarks of HemoSense, Inc.
    
    
    
    
    
    
      
        
          
            HemoSense, Inc.
          
          
            Statements of Operations
          
          
            (Unaudited)
          
          
            (In thousands, except per share data)
          
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three Months Ended
        
        
           
        
        
          Year Ended
        
      
      
        
        
        
          September 30,
        
        
           
        
        
          September 30,
        
      
      
        
        
        
          2006 
        
        
          2005 
        
        
           
        
        
          2006 
        
        
          2005 
        
      
      
        
          Revenue
        
        
          $ 4,208 
        
        
          $ 2,897 
        
        
        
        
          $ 16,257 
        
        
          $ 8,768 
        
      
      
        
          Cost of goods sold
        
        
          3,026 
        
        
          2,545 
        
        
           
        
        
          11,906 
        
        
          9,371 
        
      
      
        
          Gross profit (loss)
        
        
          1,182 
        
        
          352 
        
        
           
        
        
          4,351 
        
        
          (603)
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Research and development
        
        
          815 
        
        
          453 
        
        
        
        
          2,728 
        
        
          1,259 
        
      
      
        
          Sales and marketing
        
        
          1,945 
        
        
          1,856 
        
        
        
        
          7,899 
        
        
          6,733 
        
      
      
        
          General and administrative
        
        
          815 
        
        
          641 
        
        
           
        
        
          3,996 
        
        
          1,962 
        
      
      
        
          Total operating expenses
        
        
          3,575 
        
        
          2,950 
        
        
           
        
        
          14,623 
        
        
          9,954 
        
      
      
        
          Loss from operations
        
        
          (2,393)
        
        
          (2,598)
        
        
        
        
          (10,272)
        
        
          (10,557)
        
      
      
        
          Interest income
        
        
          130 
        
        
          112 
        
        
        
        
          580 
        
        
          130 
        
      
      
        
          Interest and other expense, net
        
        
          (260)
        
        
          (348)
        
        
           
        
        
          (1,193)
        
        
          (1,319)
        
      
      
        
          Net loss
        
        
          $ (2,523)
        
        
          $ (2,834)
        
        
           
        
        
          $ (10,885)
        
        
          $ (11,746)
        
      
      
        
          Net loss per share:
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic and diluted
        
        
          $(0.23)
        
        
          $(0.30)
        
        
           
        
        
          $(0.99)
        
        
          $(4.26)
        
      
      
        
          
            Shares used to compute loss per share:
          
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          
                 Basic and diluted        
          
        
        
          
            11,205 
          
        
        
          
            9,594 
          
        
        
        
        
          
            11,030 
          
        
        
          
            2,758 
          
        
      
    
    
    
    
    
    
      
        
          
            HemoSense, Inc.
          
          
            Balance Sheets
          
          
            (In thousands)
          
        
      
      
        
          
             
          
        
        
        
        
        
        
        
      
      
        
        
        
          September 30, 2006
        
        
        
        
          September 30, 2005
        
      
      
        
        
        
          (unaudited)
        
        
        
        
        
      
      
        
          Assets
        
        
        
        
        
        
        
      
      
        
          Current assets:
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
          $ 1,789 
        
        
        
        
          $ 3,598 
        
      
      
        
          Short term investments
        
        
          7,939 
        
        
        
        
          7,943 
        
      
      
        
          Accounts receivable
        
        
          3,148 
        
        
        
        
          2,087 
        
      
      
        
          Prepaid expenses and other current assets
        
        
          371 
        
        
        
        
          714 
        
      
      
        
          Inventories
        
        
          2,731 
        
        
        
        
          2,744 
        
      
      
        
          Total current assets
        
        
          15,978 
        
        
        
        
          17,086 
        
      
      
        
          Property and equipment, net
        
        
          501 
        
        
        
        
          512 
        
      
      
        
          Technology licenses and prepaid royalties
        
        
          245 
        
        
        
        
          1,179 
        
      
      
        
          Other assets
        
        
          126 
        
        
        
        
          226 
        
      
      
        
          Total assets
        
        
          $ 16,850 
        
        
        
        
          $ 19,003 
        
      
      
        
          Liabilities and Shareholders' Equity
        
        
        
        
        
        
        
      
      
        
          Current liabilities:
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
          $ 1,142 
        
        
        
        
          $ 1,029 
        
      
      
        
          Accrued expenses and other liabilities
        
        
          1,751 
        
        
        
        
          1,159 
        
      
      
        
          Capital lease, current portion
        
        
          37 
        
        
        
        
          37 
        
      
      
        
          Borrowings, current portion
        
        
          2,353 
        
        
        
        
          2,000 
        
      
      
        
          Total current liabilities
        
        
          5,283 
        
        
        
        
          4,225 
        
      
      
        
          Capital lease, net of current portion
        
        
          16 
        
        
        
        
          52 
        
      
      
        
          Borrowings, net of current portion
        
        
          2,476 
        
        
        
        
          4,714 
        
      
      
        
          Other liabilities
        
        
          398 
        
        
        
        
          — 
        
      
      
        
          Total liabilities
        
        
          8,173 
        
        
        
        
          8,991 
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Shareholders' equity:
        
        
        
        
        
        
        
      
      
        
          Common stock
        
        
          11 
        
        
        
        
          10 
        
      
      
        
          Additional paid-in capital
        
        
          66,739 
        
        
        
        
          57,191 
        
      
      
        
          Unrealized loss on investments
        
        
          (2)
        
        
        
        
          (3)
        
      
      
        
          Accumulated deficit
        
        
          (58,071)
        
        
        
        
          (47,186)
        
      
      
        
          Total shareholders’ equity
        
        
          8,677 
        
        
        
        
          10,012 
        
      
      
        
          Total liabilities and shareholders’ equity
        
        
          $ 16,850 
        
        
        
        
          $ 19,003 
        
      
    
  
HemoSense, Inc. (AMEX:HEM) - a medical device company that
develops, manufactures and sells easy-to-use, handheld blood
coagulation monitoring systems for use by patients and healthcare
professionals in the management of warfarin medication - today
reported financial results for the three months and year ended
September 30, 2006.

   --  Total revenue for the fiscal 2006 fourth quarter was $4.2
        million, an increase of 45% from total revenue of $2.9 million
        in the fiscal 2005 fourth quarter. Domestic revenue was $3.4
        million and international revenue was $773,000, representing
        increases of 58% and 8%, respectively, compared with the
        fiscal 2005 fourth quarter. Total revenue included $813,000 in
        revenue for INRatio(R) meters and accessories, a 35% decline
        from the fiscal 2005 fourth quarter, and $3.4 million in
        revenue for INRatio test strips, an increase of 105% from the
        fiscal 2005 fourth quarter. Total revenue for the fourth
        quarter of fiscal 2006 was negatively impacted by the timing
        of significant orders, seasonality in Europe, and temporary
        supplier issues, which caused some orders to be delayed, but
        which have since been resolved.

   --  HemoSense reported a gross profit of $1.2 million for the
        quarter, or 28% of total revenue, up from a gross profit of
        $352,000, or 12% of total revenue, for the fiscal 2005 fourth
        quarter. The improvement from the prior year was due primarily
        to higher unit sales and production volumes of test strips,
        and to process efficiencies. Gross margin improved five
        percentage points on a sequential quarter basis, reflecting a
        modification of the meter placement promotional programs that
        took place during the second and third quarters of fiscal
        2006. These programs contributed to HemoSense achieving double
        digit market share and being firmly established as the No. 2
        player in the domestic point-of-care PT/INR market.

   --  Operating expenses for the quarter were $3.6 million, up from
        $3.0 million for the fiscal 2005 fourth quarter, and down from
        $4.0 million in the fiscal 2006 third quarter.

   --  The net loss for the fiscal 2006 fourth quarter decreased to
        $2.5 million from $2.8 million for the fiscal 2005 fourth
        quarter and $3.1 million in the fiscal 2006 third quarter. The
        net loss per common share was $0.23 for the quarter on 11.2
        million weighted-average shares outstanding, compared with
        $0.30 for the fiscal 2005 fourth quarter on 9.6 million
        weighted-average shares outstanding. Included in the net loss
        and the net loss per share for the fourth quarter of fiscal
        2006 is a charge of $98,000, or approximately $0.01,
        respectively, related to stock-based compensation expense
        pursuant to SFAS No. 123(R).

   "Overall product demand remains strong and we are confident in our
ability to grow revenue and continue to gain market share in the
rapidly growing PT/INR market," said Jim Merselis, President and CEO
of HemoSense. "In fact, the market demand level to-date in the first
quarter of fiscal 2007, meaning shipments made so far in the quarter
and orders in-house for shipment later, is ahead of the revenue for
the entire fourth quarter of fiscal 2006. We are also encouraged with
our progress and recent developments. In October, we signed an
agreement to supply our INRatio system to all CheckUps medical clinics
located in Wal-Mart stores. We also made two new additions to our
senior management team, including the appointment of Gordon Sangster
as CFO, and Bill Dippel as EVP of Operations and Research &
Development.

   "Additionally, the FDA has required the manufacturer of Coumadin
to add a label alerting patients to the potential health risks
associated with warfarin when dosage levels are not properly managed,"
Mr. Merselis added. "This new labeling further highlights the
importance of frequent PT/INR testing to manage dosage levels to
ensure warfarin patients' blood coagulation levels are maintained
within their therapeutic range. We continue to work with our
manufacturers and distributors to offer warfarin patients convenient
and accurate PT/INR testing through our easy-to-use INRatio system."

   HemoSense reported cash, cash equivalents and short-term
investments of $9.7 million as of September 30, 2006.

   Year-to-Date Financial Results

   For the fiscal year ended September 30, 2006, total revenue was
$16.3 million, an increase of 85% from $8.8 million in fiscal 2005.
Fiscal 2006 domestic revenue was $13.3 million, an increase of 105%
over fiscal 2005, and international revenue was $3.0 million, an
increase of 30% over the prior fiscal year. Total revenue for fiscal
2006 included $4.7 million in meters and accessories revenue and $11.6
million in test strip revenue, up 23% and 134%, respectively, from
fiscal 2005.

   Gross profit for fiscal 2006 was $4.4 million, up from a gross
loss of $603,000 in fiscal 2005. Operating expenses were $14.6
million, an increase of 47% compared with operating expenses of $10.0
million in fiscal 2005. The net loss was $10.9 million, compared with
$11.7 million for fiscal 2005.

   Fiscal Year 2007 Financial Guidance

   HemoSense today introduced financial guidance for its fiscal year
ending September 30, 2007. The Company anticipates fiscal 2007 total
revenue to be in the range of $23.0 million to $25.0 million,
representing growth of 41% to 54%. HemoSense also expects the fiscal
2007 net loss to be in the range of $5.6 million to $6.6 million,
which includes $420,000 in stock-based compensation expense. The net
loss per common share is expected to be $0.50 to $0.59 based on
approximately 11.2 million average common shares outstanding.

   Conference Call Information

   Management will host an investment community conference call
beginning today at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to
discuss this announcement and to answer questions.

   Individuals interested in listening to the conference call may do
so by dialing [phone] for domestic callers, or [phone]
for international callers. A telephone replay will be available for 48
hours following the conclusion of the call by dialing [phone]
for domestic callers, or [phone] for international callers, and
entering reservation code 9167445.

   The live conference call will also be available via the Internet
on the Investor Relations section of the Company's Web site at
www.hemosense.com. A recording of the call will be available on the
Company's Web site for 30 days following the completion of the call.

   About HemoSense

   HemoSense develops, manufactures and markets easy-to-use, handheld
blood coagulation systems for monitoring patients taking warfarin. The
HemoSense INRatio(R) system, used by healthcare professionals and
patients themselves, consists of a small monitor and disposable test
strips. It provides accurate and convenient measurement of blood
clotting time, or PT/INR values. Routine measurements of PT/INR are
necessary for the safe and effective management of the patient's
warfarin dosing. INRatio is sold in the United States and
internationally. For more information, visit www.hemosense.com.

   This press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Statements in this press release regarding the Company's business that
are not historical facts may be "forward-looking statements" that
involve risks and uncertainties. Specifically, forward-looking
statements include those relating to executing the Company's business
strategy to increase market penetration and improve revenue, and
financial guidance for fiscal 2007, are forward looking statements
within the meaning of the Safe Harbor. Forward-looking statements are
based on management's current, preliminary, expectations and are
subject to risks and uncertainties which may cause the actual results
to differ materially from the statements contained herein. The
Company's fiscal 2006 fourth quarter financial results are preliminary
and unaudited, and are subject to adjustment. Further information on
the Company's business, prior financial results and risk factors are
detailed in its filings with the SEC, including its including its Form
10-Q for the quarter ended June 30, 2006 filed on August 11, 2006.
Undue reliance should not be placed on these forward-looking
statements, which speak only as of the date they are made. The Company
undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events or circumstances after
the date they were made, or to reflect the occurrence of unanticipated
events.

   HemoSense(R) and INRatio(R) are registered trademarks of
HemoSense, Inc.



-0-
*T
                           HemoSense, Inc.
                       Statements of Operations
                             (Unaudited)
                (In thousands, except per share data)

                                 Three Months Ended     Year Ended
                                 -------------------------------------
                                   September 30,      September 30,
                                 -------------------------------------
                                   2006     2005        2006     2005
                                 -------------------------------------
Revenue                             $4,208  $2,897   $16,257   $8,768
Cost of goods sold                   3,026   2,545    11,906    9,371
                                 -------------------------------------
Gross profit (loss)                  1,182     352     4,351     (603)
                                 -------------------------------------
Operating expenses:
  Research and development             815     453     2,728    1,259
  Sales and marketing                1,945   1,856     7,899    6,733
  General and administrative           815     641     3,996    1,962
                                 -------------------------------------
      Total operating expenses       3,575   2,950    14,623    9,954
                                 -------------------------------------
Loss from operations                (2,393) (2,598)  (10,272) (10,557)
Interest income                        130     112       580      130
Interest and other expense, net       (260)   (348)   (1,193)  (1,319)
                                 -------------------------------------
Net loss                           $(2,523)$(2,834) $(10,885)$(11,746)
                                 =====================================
Net loss per share:
     Basic and diluted              $(0.23) $(0.30)   $(0.99)  $(4.26)
                                 =====================================
Shares used to compute loss per
 share:
     Basic and diluted              11,205   9,594    11,030    2,758
*T


-0-
*T
                           HemoSense, Inc.
                            Balance Sheets
                            (In thousands)

                                 September 30, 2006 September 30, 2005
                                 ------------------ ------------------
                                    (unaudited)
Assets
Current assets:
   Cash and cash equivalents                $1,789             $3,598
   Short term investments                    7,939              7,943
   Accounts receivable                       3,148              2,087
   Prepaid expenses and other
    current assets                             371                714
   Inventories                               2,731              2,744
                                 ------------------ ------------------
      Total current assets                  15,978             17,086
Property and equipment, net                    501                512
Technology licenses and prepaid
 royalties                                     245              1,179
Other assets                                   126                226
                                 ------------------ ------------------
      Total assets                         $16,850            $19,003
                                 ================== ==================
Liabilities and Shareholders'
 Equity
Current liabilities:
 Accounts payable                           $1,142             $1,029
 Accrued expenses and other
  liabilities                                1,751              1,159
 Capital lease, current portion                 37                 37
 Borrowings, current portion                 2,353              2,000
                                 ------------------ ------------------
       Total current liabilities             5,283              4,225
 Capital lease, net of current
  portion                                       16                 52
 Borrowings, net of current
  portion                                    2,476              4,714
 Other liabilities                             398                 --
                                 ------------------ ------------------
       Total liabilities                     8,173              8,991
                                 ------------------ ------------------

Shareholders' equity:
 Common stock                                   11                 10
 Additional paid-in capital                 66,739             57,191
 Unrealized loss on investments                 (2)                (3)
 Accumulated deficit                       (58,071)           (47,186)
                                 ------------------ ------------------
    Total shareholders' equity               8,677             10,012
                                 ------------------ ------------------
      Total liabilities and
       shareholders' equity                $16,850            $19,003
                                 ================== ==================
*T