The annual net loss at Orange 21, the parent of Spy Optic, rose by 90 percent to $15.2 million, but included non-cash charges of $8.4 million for goodwill impairment related to the California company’s acquisition of LEM in Italy in 2006. Annual sales grew by 1.6 percent to $47.3 million. The gross margin for the year fell by 4.0 percentage points to 45.0 percent. Orange 21 said in a statement that the current recession continues to have an impact on its sales both in and outside the U.S. The company recently reduced its operating expenses by approximately $4.1 million.