Ophthalmic Imaging Sys, Inc - The accompanying unaudited condensed...

Ophthalmic Imaging Sys, Inc - Recent Material Event

Item 1.	Financial Statements (unaudited)
	Condensed Balance Sheet as of March 31, 2008
	Condensed Statements of Operations for the Three Months ended March 31, 2008 and 2007
	Condensed Statements of Cash Flows for the Three Months ended March 31, 2008 and 2007
	Notes to Condensed Financial Statements
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 4T.	Controls and Procedures
PART II	OTHER INFORMATION
Item 1. Item 6.	Legal Proceedings Exhibits

PART I FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Ophthalmic Imaging Systems
Condensed Balance Sheet

Assets			March 31, 2008	December 31, 2007
Current assets:
	Cash and cash equivalents		$5,559,490	$7,630,284
	Accounts receivable, net		2,409,107	2,535,843
	Accounts receivable from related party		496,817	397,307
	Note receivable from related party		1,765,404	1,146,872
	Inventories, net		1,094,508	746,342
	Prepaid expenses and other current assets		593,306	507,732
	Deferred tax asset		1,238,000	1,342,000
		Total current assets	13,156,632	14,306,380
Furniture and equipment, net of accumulated
	depreciation of $625,505 and $577,558 respectively		424,911	416,838
Restricted cash			169,555	168,218
Licensing agreement			273,808	273,808
Prepaid financing			132,468	148,365
AcerMed software purchase			553,830	90,815
Imaging software			157,836
Capitalized software development			225,892
Prepaid products			460,000	460,000
Capitalized merger costs			584,178	527,327
Other assets			302,430	295,144
		Total assets	$16,441,540	$16,686,895

Liabilities and Stockholders’ Equity
Current liabilities:
	Accounts payable		$853,328	$726,573
	Accrued liabilities		1,122,082	1,437,313
	Deferred extended warranty revenue		1,702,492	1,604,315
	Customer deposits		146,973	55,435
	Note payable- current portion		1,023,558	1,029,643
		Total current liabilities	4,848,433	4,853,279

Noncurrent liabilities:
	Line of credit		150,000	150,000
	Lease payable, less current portion		1,593,948	1,564,226
		Total liabilities	6,592,381	6,567,505

Stockholders’ equity:
	Common stock, no par value, 35,000,000 shares authorized;
		16,866,831 issued and outstanding	16,482,288	16,474,720
	Additional paid in capital		191,104	191,104
	Accumulated deficit		(6,824,233)	-6,546,434
		Total stockholders’ equity	9,849,159	10,119,390
		Total liabilities and stockholders’ equity	$16,441,540	$16,686,895
The accompanying notes are an integral part of these unaudited condensed financial statements.

Ophthalmic Imaging Systems
Condensed Statement of Operations
(Unaudited)
			Three months ended March 31,


Net revenues			$	3,147,692	$	4,160,380
Cost of sales			1,543,832		1,728,546
Gross profit			1,603,860		2,431,834
Operating expenses:
	Sales and marketing		944,009		887,334
	General and administrative		466,165		521,029
	Research and development		436,978		408,527
		Total operating expenses	1,847,151		1,816,890
Income from operations			(243,291)		614,944
Interest and other income (expense), net			(33,223)		42,638
Net income before income taxes			(276,514)		657,582
Income taxes (expense) benefit			(1,286)		(4,439)

Net (loss) income			$	(277,800)	$	653,143

Shares used in the calculation of basic
	Net (loss) income per share		16,866,831		16,508,677

Basic net (loss) income per share			$	(0.02)	$	0.04

Shares used in the calculation of diluted
	Net (loss) income per share		17,103,385		18,356,856

Diluted net (loss) income per share			$	(0.02)	$	0.04

Ophthalmic Imaging Systems
Condensed Statements of Cash Flows
(Unaudited)
	Three months ended March 31,


Operating activities:
Net (loss) income	$	(277,800)	$	653,143
Adjustments to reconcile net (loss) income to net cash (used in)