Exhibit 99.1

STATEMENT OF INCOME

OPERATIONS OF FEDERAL HOSE
  (Unaudited)

	Three Months ended June 30, 2016	Six Months ended June 30, 2016	Three Months ended June 30, 2015	Six Months ended June 30, 2015
Net Sales	$1,793,001	$3,491,863	$2,034,454	$4,248,472
Cost of Sales	1,354,924	2,676,140	1,550,915	3,095,028
Gross Profit	438,077	815,723	483,539	1,153,444
Corporate management fees	60,000	120,000	60,000	120,000
Selling, general and  administrative expenses	244,813	481,848	158,225	332,391
	304,813	601,848	218,225	452,391
Net Income	$133,264	$213,875	$265,314	701,053

BALANCE SHEET

OPERATIONS OF FEDERAL HOSE
(UNAUDITED)

   
 

	June 30,   2016  (Unaudited)	June 30,    2015   (Unaudited)
Assets
Current Assets
Petty Cash	$201	$201
Cash and Cash Equivalents	56,307	-
Trade Accounts Receivable - Net	834,720	885,383
Inventories	1,590,623	2,093,375
Prepaid Expenses	9,909	6,994
Total Current Assets	2,491,760	2,985,953
Property, Plant and Equipment	779,672	750,030
Less: Allowance for Depreciation	471,471	458,464
Total Property - Net	308,201	291,566
Other Assets
Interdivisional Advances	690,935	4,583,170
Total Other Assets	690,935	4,583,170
Total Assets	$3,490,896	$7,860,689
Liabilities and Equity
Current Liabilities
Trade Accounts Payable	$475,513	$791,745
Accrued Expenses	130,217	129,920
Total Current Liabilities	605,730	921,665
Equity
Retained Earnings	2,885,166	6,939,024
Total Liabilities and Equity	$3,490,896	$7,860,689

STATEMENT OF RETAINED EARNINGS

OPERATIONS OF FEDERAL HOSE
  (Unaudited)

	Three Months ended June 30, 2016	Six Months ended June 30, 2016	Three Months ended June 30, 2015	Six Months ended June 30, 2015
Retained Earnings - Beginning	$2,751,902	$2,871,291	$6,673,710	$6,531,971
Net income	133,264	213,875	265,314	701,053
Distributions	-	(200,000)	-	(294,000)
Retained Earnings - Ending	$2,885,166	$2,885,166	$6,939,024	$6,939,024