EX-99.1 7 exhibit99-1_15676.txt SCHEDULE II EXHIBIT 99.1 ------------ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL STATEMENT SCHEDULE To the Board of Directors and Shareholders Signature Eyewear, Inc. Our audits of the financial statements of Signature Eyewear, Inc. referred to in our report dated January 18, 2008 appearing in Item 8 in this Annual Report on Form 10-K also included an audit of the financial statement schedule listed in item 15(a) of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related financial statements. /s/ Grobstein, Horwath & Company LLP Sherman Oaks, California January 18, 2008 SIGNATURE EYEWEAR, INC. VALUATION AND QUALIFYING ACCOUNTS - SCHEDULE II For the Years Ended October 31, ================================================================================
Additions Additions Balance, (Deductions) (Deductions) Balance, Beginning Charge to from End of Year Operations Reserve of Year ------------ ------------ ------------ ------------ ALLOWANCE FOR DOUBTFUL ACCOUNTS OCTOBER 31, 2007 $ 57,373 $ 115,090 $ (119,627) $ 52,836 ============ ============ ============ ============ OCTOBER 31, 2006 $ 141,603 $ -- $ (84,230) $ 57,373 ============ ============ ============ ============ OCTOBER 31, 2005 $ 228,807 $ -- $ (87,204) $ 141,603 ============ ============ ============ ============ RESERVES FOR SLOW MOVING INVENTORIES OCTOBER 31, 2007 $ -- $ -- $ -- $ -- ============ ============ ============ ============ OCTOBER 31, 2006 $ -- $ -- $ -- $ -- ============ ============ ============ ============ OCTOBER 31, 2005 $ -- $ -- $ -- $ -- ============ ============ ============ ============ VALUATION ALLOWANCE FOR DEFERRED TAX ASSETS OCTOBER 31, 2007 $ 7,381,800 $ 2,090,634 $ (4,366,634) $ 5,105,800 ============ ============ ============ ============ OCTOBER 31, 2006 $ 6,986,000 $ 557,975 $ (162,175) $ 7,381,800 ============ ============ ============ ============ OCTOBER 31, 2005 $ 8,294,000 $ 297,933 $ (1,605,933) $ 6,986,000 ============ ============ ============ ============ RESERVES FOR CUSTOMER RETURNS OCTOBER 31, 2007 $ 300,309 $ -- $ -- $ 300,309 ============ ============ ============ ============ OCTOBER 31, 2006 $ 290,810 $ -- $ 9,499 $ 300,309 ============ ============ ============ ============ OCTOBER 31, 2005 $ 302,045 $ -- $ (11,235) $ 290,810 ============ ============ ============ ============