NOTE 14—SUBSEQUENT EVENTS

Stock Repurchase Program

Subsequent to the quarter ended June 30, 2012 and pursuant to the stock repurchase program, which became effective on August 12, 2011, the Company repurchased approximately 123,000 shares of the Company’s common stock at an average price of $1.73 per share. The shares repurchased will be retired and shall resume the status of authorized and unissued shares. The Company expects to record the effects of the stock repurchases in the third quarter ending September 30, 2012.

Definitive Distribution Agreement

In July 2012, the Company entered a definitive five-year agreement with Copenhagen-based 3Shape Corporation (“3Shape”), making the Company a distributor of 3Shape’s TRIOS^® intra-oral scanning technologies for digital impression-taking solutions in the United States and Canada.

Stock Option Grants

Subsequent to the quarter ended June 30, 2012, the Board of Directors granted non-qualified stock options to purchase 121,000 shares of the Company’s common stock to several new employees and key consultants. The Company expects to begin to record the effects of these stock option grants in the third quarter ending September 30, 2012.