Joint Venture

The Company and its joint venture partner, a Hong Kong corporation, each owns a 50% interest in a Hong Kong joint venture, Eyston Company Limited (the “Hong Kong Joint Venture”), that manufactures security products in its facilities located in the People’s Republic of China. The following represents summarized balance sheet and income statement information of the Joint Venture as of and for the six months ended September 30, 2014 and 2013:

	2014		2013
Net sales	$	8,520,500	$	12,762,882
Gross profit		1,841,037		3,681,014
Net (Loss) income		(494,854)		1,165,070
Total current assets		17,222,188		15,019,984
Total assets		34,811,711		35,206,745
Total current liabilities		7,084,981		4,925,122

During the six months ended September 30, 2014 and 2013 the Company purchased $2,424,356 and $4,326,557, respectively, of products directly from the Hong Kong Joint Venture for resale. For the six month periods ended September 30, 2014 and 2013 the Company has adjusted its earnings of the Joint Venture to reflect an increase of $165,799 and $145,041, respectively, to eliminate inter-Company profit on purchases held by the Company in inventory.