Implant Sciences [IMSC]

                                    3Q13               3Q12                          

Sales                            $1.3M             $686,000K     

Net Inc.                       ($5.3M, 0.10) ($3.9M, 0.11)

The net loss widened due mainly to $1.5 million of stock-based compensation, a $317,000 increase in research and development expenses, and higher interest expense. Revenue increased 84 percent due primarily to the delivery to a U.S. government agency of Quantum Sniffer QS-H150 handheld explosive trace detectors and increase sales of parts and supplies. Implant increased its geographic distribution with sales to Japan, Africa, Asia, the Middle East and a U.S. agency and its markets now include nuclear plants, a national postal service, corporate offices, critical infrastructure and VIP protection.