10-Q

U.S. Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended   July 31, 2011

Commission File No. 0-14443

INTERNATIONAL BALER CORPORATION

    (Exact name of registrant as specified in its charter)

Delaware	13-2842053
State or other jurisdiction of	(IRS Employer Identification No.)
Incorporation or organization

5400 Rio Grande Avenue, Jacksonville, FL 32254

(Address of principal executive offices)

(904-358-3812)

(Registrant’s telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x       No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  o     No  o

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  o Accelerated filer  o Non-accelerated filer  o (Do not check if a smaller reporting company) Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o  No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:  5,183,895 shares of common stock at August 31, 2011.

INTERNATIONAL BALER CORPORATION

TABLE OF CONTENTS

PAGE

PART I.	FINANCIAL INFORMATION		3
	ITEM 1.	FINANCIAL STATEMENTS
	●Condensed Balance Sheets as of July 31, 2011, and October 31, 2010		3
	●Condensed Statements of Operations for the three months and nine months ended July 31, 2011 and 2010		4
	●Condensed Statements of Changes in Stockholders’ Equity for the period from October 31, 2010 to July 31, 2011		5
	●Condensed Statements of Cash Flows for the nine months ended July 31, 2011 and 2010		6
	●Notes to Condensed Financial Statements (Unaudited)		7
	ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	11
	ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	12
	ITEM 4.	CONTROLS AND PROCEDURES	12
PART II.	OTHER INFORMATION		13
	ITEM 1.	LEGAL PROCEEDINGS	13
	ITEM 5.	OTHER INFORMATION	13
	ITEM 6.	EXHIBITS	14
SIGNATURES			15
CERTIFICATIONS			16

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INTERNATIONAL BALER CORPORATION

CONDENSED BALANCE SHEETS

UNAUDITED

	July 31, 2011			October 31, 2010
ASSETS
Current Assets:
Cash and cash equivalents	$	2,235,923		$	2,101,204
Accounts receivable, net of allowance for doubtful accounts
of $71,764 in 2011 and 2010		1,142,256			700,484
Inventories		2,394,016			1,281,312
Prepaid expense and other current assets		134,864			72,508
Deferred income taxes		105,685			435,185
Total current assets		6,012,744			4,590,693
Property, plant and equipment, at cost:		2,627,921			2,414,055
Less:  accumulated depreciation		1,688,074			1,622,757
Net property, plant and equipment		939,847			791,298
Other assets:
Other assets		1,396			1,396
Due from former Director		6,321			16,319
Deferred income taxes		165,511			165,511
Total other assets		173,228			183,226
TOTAL ASSETS	$	7,125,819		$	5,565,217
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	591,675		$	330,459
Accrued liabilities		335,396			278,776
Current portion of deferred compensation		67,000			67,000
Customer deposits		972,299			279,424
Total current liabilities		1,966,370			955,659
Deferred compensation, net of current portion		30,845			76,213
Total liabilities		1,997,215			1,031,872
Stockholders' equity:
Preferred stock, par value $.0001,
10,000,000 shares authorized, none issued		—			—
Common stock, par value $.01,
25,000,000 shares authorized; 6,429,875 and 6,179,875
shares issued in 2011 and 2010, respectively		64,299			61,799
Additional paid-in capital		6,419,687			6,347,187
Accumulated deficit		(673,972	)		(1,194,231	)
		5,810,014			5,214,755
Less:  Treasury stock, 1,245,980 shares
in 2011 and 2010, at cost		(681,410	)		(681,410	)
Total stockholders' equity		5,128,604			4,533,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,125,819		$	5,565,217

See accompanying notes to condensed financial statements.

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INTERNATIONAL BALER CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS AND NINE MONTHS ENDED JULY 31, 2011 and 2010

UNAUDITED

	Three Months					Nine Months
	July 31, 2011		July 31, 2010			July 31, 2011		July 31, 2010
Net Sales:
Equipment	$	2,699,995	$	1,599,815		$	6,551,045	$	4,661,541
Parts and Service		405,113		335,857			1,235,781		921,811
Total Net Sales		3,105,108		1,935,672			7,786,826		5,583,352
Cost of Sales		2,377,455		1,526,568			6,037,624		4,467,834
Gross Profit		727,653		409,104			1,749,202		1,115,518
Operating Expense:
Selling Expense		130,995		73,143			357,400		307,128
Administrative Expense		203,938		178,160			548,460		523,663
Total Operating Expense		334,933		251,303			905,860		830,791
Operating Income		392,720		157,801			843,342		284,727
Other Income (Expense):
Interest Income		2,021		2,284			6,417		7,795
Interest Expense		—		—			—		(3,160	)
Other Income				—			—		64
Other Expense		—		(25,000	)		—		(25,000	)
Total Other Income		2,021		(22,716	)		6,417		(20,301	)
Income Before Income Taxes		394,741		135,085			849,759		264,426
Income Tax Provision		154,000		53,500			329,500		103,150
Net Income	$	240,741	$	81,585		$	520,259	$	161,276
Basic Income per share	$	0.05	$	0.02		$	0.10	$	0.03
Diluted Income per share		0.05		0.02			0.10		0.03
Weighted average number of shares outstanding - Basic		5,183,895		4,933,895			5,041,038		4,933,895
- Diluted		5,183,895		5,056,776			5,115,867		5,038,264

See accompanying notes to condensed financial statements.

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INTERNATIONAL BALER CORPORATION

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE NINE MONTHS ENDED JULY 31, 2011

UNAUDITED

	Common Stock									Treasury Stock
	NUMBER
	OF SHARES		PAR		ADDITIONAL PAID-IN		ACCUMULATED			NUMBER OF					TOTAL STOCKHOLDERS'
	ISSUED		VALUE		CAPITAL		DEFICIT			SHARES		COST			EQUITY
Balance at October 31, 2010		6,179,875	$	61,799	$	6,347,187	$	(1,194,231	)		1,245,980	$	(681,410	)	$	4,533,345
Issuance of 250,000
shares of Common Stock		250,000		2,500		72,500		-0-			-0-		-0-			75,000
Net Income		-0-		-0-		-0-		520,259			-0-		-0-			520,259
Balance at July 31, 2011		6,429,875	$	64,299	$	6,419,687	$	(673,972	)		1,245,980	$	(681,410	)	$	5,128,604

See accompanying notes to condensed financial statements.

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INTERNATIONAL BALER CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED JULY 31, 2011 AND 2010

UNAUDITED

	July 31, 2011			July 31, 2010
Cash flow from operating activities:
Net income	$	520,259		$	161,276
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization		65,317			78,260
Provision for doubtful accounts, net of recoveries		—			(7,106	)
Deferred income taxes		329,500			103,150
Changes in operating assets and liabilities:
Accounts receivable		(441,772	)		(844,705	)
Inventories		(1,112,704	)		(123,789	)
Prepaid expenses and other current assets		(62,356	)		(18,284	)
Accounts payable		261,216			(33,270	)
Accrued liabilities and deferred compensation		11,252			58,109
Customer deposits		692,875			(21,188	)
Net cash provided by (used in) operating activities		263,587			(647,547	)
Cash flows from investing activities:
Proceeds from notes receivable from former Director		9,998			9,417
Purchase of property and equipment		(213,866	)		—
Restricted Cash		—			224,100
Net cash (used in) provided by investing activities		(203,868	)		233,517
Cash flows from financing activities:
Issuance of common stock		75,000			—
Net cash provided by financing activities		75,000			—
Net increase (decrease) in cash and cash equivalents		134,719			(414,030	)
Cash and cash equivalents at beginning of period		2,101,204			1,609,305
Cash and cash equivalents at end of period	$	2,235,923		$	1,195,275
Supplemental disclosure of cash flow information:
Cash paid during period for:
Interest	$	—		$	—
Income taxes		—			—

See accompanying notes to condensed financial statements.

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INTERNATIONAL BALER CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

1. Nature of Business:

International Baler Corporation (the Company) is a manufacturer of baling equipment which is designed to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling.  Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste.  More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models, and conveyors to meet specific customer requirements.

The Company's customers include recycling facilities, distribution centers, textile mills, and companies which generate the materials for baling and recycling.  The Company sells its products worldwide with 10% to 35% of its annual sales outside the United States.

2. Basis of Presentation:

The accompanying unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information in footnotes required by United States generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included.  Operating results for the nine-month period ended July 31, 2011 are not necessarily indicative of the results that may be expected for the year ending October 31, 2011. The accompanying balance sheet as of October 31, 2010 was derived from the audited financial statements as of October 31, 2010.

3. Summary of Significant Accounting Policies:

(a)  Accounts Receivable & Allowance for Doubtful Accounts:

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly. Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

(b)  Inventories:

Inventories are stated at the lower of cost or market. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to

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manufacture balers which includes direct materials, direct and indirect labor, and overhead. The Company maintains an allowance for excess or slow moving inventory based on the expectation that this inventory will become obsolete or unusable within a reasonable time period. Company personnel review the potential usage of inventory and inventory components on a regular basis.

(c)  Revenue Recognition:

The Company recognizes revenue when products are shipped and the customer takes ownership and assumes the risk of loss. Parts sales are approximately 15% of total sales. The Company recognizes revenue from installations and start-ups and repair services in the period in which the service is provided.

(d)  Basic and Diluted Income Per Share:

Basic income per share is calculated using the weighted average number of common shares outstanding during each period. Diluted income per share includes the net additional number of shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss periods as they would be antidilutive. The dilutive impact of options outstanding at July 31, 2011 and July 31, 2010 was 74,829 shares and 104,369 shares, respectively.

(e)  Warranties and Service

The Company warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers a service plan for other required repairs and maintenance. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers under warranty, and known warranty issues.

Following is a tabular reconciliation of the changes in the warranty accrual for the nine-month period ended July 31:

	2011			2010
Beginning balance	$	49,859		$	55,059
Warranty service provided		(112,759	)		(55,443	)
Warranties issued		98,265			46,615
Changes to pre-existing warranty accruals		19,494			8,828
Ending balance	$	54,859		$	55,059

(f)   Recently Issued Accounting Pronouncements

In October 2009, the FASB issued ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements.” ASU 2009-13 amends existing revenue recognition accounting pronouncements that are currently within the scope of FASB ASC Topic 605. This consensus provides accounting principles and application guidance on how the arrangement should be separated, and the consideration allocated. This guidance changes how to determine the fair value of undelivered products and services for separate revenue recognition. Allocation of consideration under this pronouncement is based on management’s estimate of the selling price for an undelivered item where there is no other means to determine the fair value of that undelivered

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item. This new approach is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with early application permitted. The adoption of this standard did not have any impact on the Company’s financial statements.

(g)   Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, revolving promissory note, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.

(h)   Subsequent Events

The Company evaluated all events or transactions that occurred after July 31, 2011 up through the date the Company issued its financial statements.

4.  Related Party Transactions:

The Company has a note receivable from its former president and director totaling $21,159 and $31,157 at July 31, 2011 and October 31, 2010, respectively. Interest accrues at the rate of 6% per annum.

The Company has an agreement with the former president and director of the Company for deferred compensation payments. The Company will make payments with a present value of $97,845, payable over the next two years. A portion of the payments will be used to repay the outstanding note receivable discussed above.

Leland E. Boren, a shareholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls 51.0% of the outstanding shares of the Company. Avis owns 100% of American Baler Company, a competitor of the Company. These baler companies operate independent of each other.

5.  Inventories

Inventories consisted of the following:

	July 31, 2011		October 31, 2010
Raw Materials	$	896,498	$	694,446
Work in process		1,074,877		377,977
Finished Goods		422,641		208,889
	$	2,394,016	$	1,281,312

6.  Debt

The Company has a $1,000,000 line of credit agreement with First Guaranty Bank and Trust Company of Jacksonville. The line of credit allows the Company to borrow against the Company’s property, plant and equipment. The line of credit bears interest at the prime rate plus one-half percent with a floor of 5.0%, with a re-affirmation date of February 28, 2012.  The line of credit had no outstanding balance at July 31, 2011 and October 31, 2010, and the unused line of credit was $1,000,000 at July 31, 2011. The credit agreement contains covenants that require the Company to provide annual audited financial statements and quarterly

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internal financial statements to the lender. There are no other covenants or restrictions.

7.  Income Taxes

As of July 31, 2011, the Company’s anticipated annual effective tax rate is 39%. The difference between income taxes as provided at the federal statutory tax rate of 34% and the Company’s actual income tax is primarily the result of state income tax expense and permanent deductible differences.

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. Factors considered included, historical results of operations, volatility of the economic conditions and projected earnings based on current operations. Based on this evidence, it is more likely than not that the deferred tax assets would be realized. Accordingly, the valuation allowance as of July 31, 2011 and at October 31, 2010 is $0. However, if it is determined that all or part of the deferred tax assets will not be used in the future, an adjustment to the deferred tax assets would be charged against net income in the period such determination is made. As of July 31, 2011 and October 31, 2010, deferred tax assets were $271,196 and $600,696, respectively. The realization of deferred tax assets will depend on the Company’s ability to continue to generate taxable income in the future.

8.  Stock-Based Compensation

In June 2002, the Company granted 250,000 nonqualified stock options to purchase shares of the Company’s common stock. These options, which vested immediately, have an exercise price of $0.30 and a term of 10 years. The options or shares purchased thereunder may be registered pursuant to the Securities Act of 1933. The Company has no remaining authorized shares available for grant under existing stock option plans. As all options were fully vested, there was no impact to net income for the nine months ended July 31, 2011 and 2010 related to stock options. The stock options were exercised in April 2011 and 250,000 shares of common stock were issued.

9.  Commitments and Contingencies

The Company in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its condensed financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled.

On August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was injured in a workplace

accident while an employee of the Company.  The accident occurred in September 2008. The Plaintiff has demanded $2,500,000 to settle this claim.  The Company intends to vigorously defend this case and has contacted its liability insurance carrier to request defense and indemnification of any losses incurred in connection with this lawsuit.  The claim is currently in discovery and the outcome is unknown.

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ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read together with our unaudited condensed financial statements and the related notes thereto included in Part I, Item 1 “Financial Statements”. For further information, refer to the Company's Annual Report on Form 10-K for the year ended October 31, 2010, and the Management Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q.

Results of Operations:  Three Month Comparison

In the third quarter ended July 31, 2011, the Company had net sales of $3,105,108, compared to net sales of $1,935,672 in the third quarter of fiscal 2010, an increase of 60.4%. The increase in revenue is the result of higher shipments in the third quarter of fiscal 2011 reflecting the improved market conditions and higher commodity prices for recycled materials compared to the third quarter 2010.  In the current quarter the company sold thirty-five balers and conveyors with an average price of approximately $75,000 compared to thirty-two balers and conveyors with an average price of $50,000 in the prior year quarter. The market for baling equipment has been moving toward larger, more productive and efficient equipment in recent years. Parts and service sales increased by $69,256 in the current year compared to the prior year.

The Company had pre-tax income of $394,741 in the third quarter compared to pre-tax income of $135,085 in third quarter of fiscal 2010. Gross profit margin in the quarter was 23.4% compared to 21.1% in the third quarter of 2010. The improvement in income and profit margins were the result of the higher shipments of equipment and parts and service. Also, the significant cost reductions implemented in the second half of fiscal 2009 remain in place. Selling and administrative expenses increased by $83,630 in the third quarter of 2011 compared to the prior year second quarter.  The third quarter of 2010 included the recovery of a previously reserved for receivable.

Results of Operations: Nine Month Comparison

The Company had net sales of $7,786,826 in the first nine months of fiscal 2011 compared to net sales of $5,583,352 in the same period of fiscal 2010, an increase of 39.5%. Gross profit was $633,684 higher in the first half of 2011 than in the prior year and gross profit margins improved to 22.5% from 20.0% in 2010.

The Company had pre-tax income of $849,759 in the first nine months of 2011 compared to income of $264,426 in the first nine months of fiscal 2010. Selling and administrative expenses were $75,099 higher in the first nine months of fiscal 2011 than in the prior year.

The sales order backlog was $4,700,000 at July 31, 2011 and $1,495,000 at July 31, 2010.

Financial Condition and Liquidity:

Net working capital at July 31, 2011 was $4,046,374, as compared to $3,635,034 at October 31, 2010. The Company currently believes that it will have sufficient cash flow to be able to fund other operating activities for the next twelve months.

Average days sales outstanding (DSO) in the first nine months of fiscal 2011 were 26.6 days, as compared to 52.2 days in the first nine months of fiscal 2010. DSO is calculated by dividing the total of the month-end net accounts receivable balances for the period by nine, and dividing that result by the average days sales for the period (period sales ÷ 273).

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In fiscal 2011 the company has made additions to plant and equipment of $213,866 and is committed to an additional $106,088 in the fourth quarter.  Included in these capitol expenditures are a hydraulic press break, a ten-ton bridge crane, a two-ton bridge crane and a large fork lift truck.

The Company has a $1,000,000 line of credit agreement with First Guaranty Bank and Trust Company of Jacksonville. The line of credit allows the Company to borrow against the Company’s property, plant and equipment. The line of credit bears interest at the prime rate plus one-half percent with a floor of 5.0%, with a re-affirmation date of February 28, 2012. The line of credit had no outstanding balance at July 31, 2011 and October 31, 2010, and the unused line of credit was $1,000,000 at July 31, 2011. The credit agreement contains covenants that require the Company to provide annual audited financial statements and quarterly internal financial statements to the lender. There are no other covenants or restrictions.

At the current time, the line of credit continues to be available and there have not been any issues obtaining additional funds from the lender. In the event that the Company’s line of credit would not be available, the Company would pursue a line of credit from other sources, and take steps to minimize expenditures, such as delaying capital expenditures and reducing overhead costs.

Forward Looking Statements

Certain statements in this Report contain forward-looking statements within the meaning of Section 21B of the Securities and Exchange Act of 1934, as amended. These forward-looking statements represent the Company's present expectations or beliefs concerning future events.  The Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties including, but not limited to, changes in general economic conditions and changing competition which could cause actual results to differ materially from those indicated.

ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to changes in interest rates as a result of its financing activities, including its borrowings on the revolving line of credit facility. Based on the current level of borrowings, a change in

interest rates is not expected to have a material effect on operations or financial position.

ITEM 4.       CONTROLS AND PROCEDURES

Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange

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Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. As of the end of the period covered by this report, and under the supervision and with the participation of the management, including the Company’s Chief Executive Officer and Chief Financial Officer, management evaluated the effectiveness of the design and operation of these disclosure controls and procedures. Based on this evaluation and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

As part of a continuing effort to improve the Company’s business processes management is evaluating its internal controls and may update certain controls to accommodate any modifications to its business processes or accounting procedures.

Changes in Internal Control over Financial Reporting

The Company’s management, including CEO and CFO, confirm that there were no changes in the Company’s internal control over financial reporting during the fiscal quarter ended July 31, 2011 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II.      OTHER INFORMATION

ITEM 1.        LEGAL PROCEEDINGS

On August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was injured in a workplace accident while an employee of the Company.  The accident occurred in September 2008. The Plaintiff has demanded $2,500,000 to settle this claim.  The Company intends to vigorously defend this case and has contacted its liability insurance carrier to request defense and indemnification of any losses incurred in connection with this lawsuit.  The claim is currently in discovery and the outcome is unknown.

ITEM 5.       OTHER INFORMATION

None.

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ITEM 6.       EXHIBITS

The following exhibits are submitted herewith:

Exhibit        31.1 Certification of D. Roger Griffin, Chief Executive Officer, pursuant to Rule 13a–14(a)/15d-14(a).

31.2 Certification of William E. Nielsen, Chief Financial Officer, pursuant to Rule 13a–14(a)/15d-14(a).

32.1 Certification of D. Roger Griffin, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of William E. Nielsen, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned there unto duly authorized.

Dated:          September 12, 2011

INTERNATIONAL BALER CORPORATION
By:	/s/ D. Roger Griffin
	D. Roger Griffin
	Chief Executive Officer

By:	/s/ William E. Nielsen
	William E. Nielsen
	Chief Financial Officer

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EX-31.1

EXHIBIT 31.1

 I, D. Roger Griffin, certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q for the quarter ended July 31, 2011 of International Baler Corp.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such   internal control over financial reporting to be designed under our  supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and

5. The registrants certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: September 12, 2011

/S/     D. Roger Griffin                           

  D. Roger Griffin

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, William E. Nielsen, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended July 31, 2011 of International Baler Corp.;

2.  Based on my knowledge, this report does not contain any untrue statement of a  material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such   internal control over financial reporting to be designed under our  supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation.

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and

5. The registrants certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(c)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(d)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: September 12, 2011                                            /S/  William E. Nielsen                         

                                                                                                 William E. Nielsen

                                                                                                 Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

I have reviewed the Quarterly Report of International Baler Corp. on Form 10-Q for the quarter ended July 31, 2011 (the “Report”);

To the best of my knowledge, the Report (i) fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and (ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of Waste Technology Corp. and its subsidiary during the period covered by this Report.

Dated:          September 12, 2011

    /S/   D. Roger Griffin                 

 D. Roger Griffin

                                 Chief Executive Officer

EX-31.2

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

I have reviewed the Quarterly Report of International Baler Corp. on Form 10-Q for the quarter ended July 31, 2011 (the “Report”);

To the best of my knowledge, the Report (i) fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and (ii) the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of Waste Technology Corp. and its subsidiary during the period covered by this Report.

Dated:       September 12, 2011

    /S/   William E. Nielsen                           

             William E. Nielsen

             Chief Financial Officer

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Condensed Balance Sheets (Parenthetical) (USD $)	Jul. 31, 2011	Oct. 31, 2010
Current Assets:
Accounts receivable, allowance for doubtful accounts	$ 71,764	$ 71,764
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	25,000,000	25,000,000
Common Stock, shares issued (in shares)	6,429,875	6,179,875
Treasury stock, shares (in shares)	1,245,980	1,245,980

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Condensed Statements of Operations Unaudited (USD $)	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Jul. 31, 2010	Jul. 31, 2011	Jul. 31, 2010
Net Sales:
Equipment	$ 2,699,995	$ 1,599,815	$ 6,551,045	$ 4,661,541
Parts and Service	405,113	335,857	1,235,781	921,811
Total Net Sales	3,105,108	1,935,672	7,786,826	5,583,352
Cost of Sales	2,377,455	1,526,568	6,037,624	4,467,834
Gross Profit	727,653	409,104	1,749,202	1,115,518
Operating Expense:
Selling Expense	130,995	73,143	357,400	307,128
Administrative Expense	203,938	178,160	548,460	523,663
Total Operating Expense	334,933	251,303	905,860	830,791
Operating Income	392,720	157,801	843,342	284,727
Other Income (Expense):
Interest Income	2,021	2,284	6,417	7,795
Interest Expense	0	0	0	(3,160)
Other Income		0	0	64
Other Expense	0	(25,000)	0	(25,000)
Total Other Income	2,021	(22,716)	6,417	(20,301)
Income Before Income Taxes	394,741	135,085	849,759	264,426
Income Tax Provision	154,000	53,500	329,500	103,150
Net Income	$ 240,741	$ 81,585	$ 520,259	$ 161,276
Basic Income per share (in dollars per share)	$ 0.05	$ 0.02	$ 0.10	$ 0.03
Diluted Income per share (in dollars per share)	$ 0.05	$ 0.02	$ 0.10	$ 0.03
Weighted average number of shares outstanding
- Basic (in shares)	5,183,895	4,933,895	5,041,038	4,933,895
- Diluted (in shares)	5,183,895	5,056,776	5,115,867	5,038,264

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Document and Entity Information	9 Months Ended
	Jul. 31, 2011	Aug. 31, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	INTERNATIONAL BALER CORP
Entity Central Index Key	0000781902
Current Fiscal Year End Date	--10-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jul. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock Shares Outstanding		5,183,895
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

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Debt	9 Months Ended
	Jul. 31, 2011
Debt [Abstract]
Debt	6. Debt The Company has a $1,000,000 line of credit agreement with First Guaranty Bank and Trust Company of Jacksonville. The line of credit allows the Company to borrow against the Company’s property, plant and equipment. The line of credit bears interest at the prime rate plus one-half percent with a floor of 5.0%, with a re-affirmation date of February 28, 2012. The line of credit had no outstanding balance at July 31, 2011 and October 31, 2010, and the unused line of credit was $1,000,000 at July 31, 2011. The credit agreement contains covenants that require the Company to provide annual audited financial statements and quarterly internal financial statements to the lender. There are no other covenants or restrictions.

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Basis of Presentation

9 Months Ended

Jul. 31, 2011

Basis of Presentation [Abstract]

Basis of Presentation

2. Basis of Presentation:

The accompanying unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information in footnotes required by United States generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the nine-month period ended July 31, 2011 are not necessarily indicative of the results that may be expected for the year ending October 31, 2011. The accompanying balance sheet as of October 31, 2010 was derived from the audited financial statements as of October 31, 2010.

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Stock-Based Compensation

9 Months Ended

Jul. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

8. Stock-Based Compensation

In June 2002, the Company granted 250,000 nonqualified stock options to purchase shares of the Company’s common stock. These options, which vested immediately, have an exercise price of $0.30 and a term of 10 years. The options or shares purchased thereunder may be registered pursuant to the Securities Act of 1933. The Company has no remaining authorized shares available for grant under existing stock option plans. As all options were fully vested, there was no impact to net income for the nine months ended July 31, 2011 and 2010 related to stock options. The stock options were exercised in April 2011 and 250,000 shares of common stock were issued.

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Commitments and Contingencies

9 Months Ended

Jul. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

The Company in the ordinary course of business, is subject to claims made, and from time to time is named as a defendant in legal proceedings relating to the sales of its products. The Company believes that the reserves reflected in its condensed financial statements are adequate to pay losses and loss adjustment expenses which may result from such claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled.

On August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was injured in a workplace

accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff has demanded $2,500,000 to settle this claim. The Company intends to vigorously defend this case and has contacted its liability insurance carrier to request defense and indemnification of any losses incurred in connection with this lawsuit. The claim is currently in discovery and the outcome is unknown.

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Income Taxes

9 Months Ended

Jul. 31, 2011

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

As of July 31, 2011, the Company’s anticipated annual effective tax rate is 39%. The difference between income taxes as provided at the federal statutory tax rate of 34% and the Company’s actual income tax is primarily the result of state income tax expense and permanent deductible differences.

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. Factors considered included, historical results of operations, volatility of the economic conditions and projected earnings based on current operations. Based on this evidence, it is more likely than not that the deferred tax assets would be realized. Accordingly, the valuation allowance as of July 31, 2011 and at October 31, 2010 is $0. However, if it is determined that all or part of the deferred tax assets will not be used in the future, an adjustment to the deferred tax assets would be charged against net income in the period such determination is made. As of July 31, 2011 and October 31, 2010, deferred tax assets were $271,196 and $600,696, respectively. The realization of deferred tax assets will depend on the Company’s ability to continue to generate taxable income in the future.

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Condensed Statements Of Cash Flows Unaudited (USD $)	9 Months Ended
	Jul. 31, 2011	Jul. 31, 2010
Cash flow from operating activities:
Net Income	$ 520,259	$ 161,276
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	65,317	78,260
Provision for doubtful accounts, net of recoveries	0	(7,106)
Deferred income taxes	329,500	103,150
Changes in operating assets and liabilities:
Accounts receivable	(441,772)	(844,705)
Inventories	(1,112,704)	(123,789)
Prepaid expenses and other current assets	(62,356)	(18,284)
Accounts payable	261,216	(33,270)
Accrued liabilities and deferred compensation	11,252	58,109
Customer deposits	692,875	(21,188)
Net cash provided by (used in) operating activities	263,587	(647,547)
Cash flows from investing activities:
Proceeds from notes receivable from former Director	9,998	9,417
Purchase of property and equipment	(213,866)	0
Restricted Cash	0	224,100
Net cash (used in) provided by investing activities	(203,868)	233,517
Cash flows from financing activities:
Issuance of common stock	75,000	0
Net cash provided by financing activities	75,000	0
Net increase (decrease) in cash and cash equivalents	134,719	(414,030)
Cash and cash equivalents at beginning of period	2,101,204	1,609,305
Cash and cash equivalents at end of period	2,235,923	1,195,275
Cash paid during period for:
Interest	0	0
Income taxes	$ 0	$ 0

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Summary of Significant Accounting Policies

9 Months Ended

Jul. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies:

(a) Accounts Receivable & Allowance for Doubtful Accounts:

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable. The Company reviews its allowance for doubtful accounts monthly. Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

(b) Inventories:

Inventories are stated at the lower of cost or market. Cost is determined by a method that approximates the first-in, first-out method. Work in process and finished goods are valued based on underlying costs to manufacture balers which includes direct materials, direct and indirect labor, and overhead. The Company maintains an allowance for excess or slow moving inventory based on the expectation that this inventory will become obsolete or unusable within a reasonable time period. Company personnel review the potential usage of inventory and inventory components on a regular basis.

(c) Revenue Recognition:

The Company recognizes revenue when products are shipped and the customer takes ownership and assumes the risk of loss. Parts sales are approximately 15% of total sales. The Company recognizes revenue from installations and start-ups and repair services in the period in which the service is provided.

(d) Basic and Diluted Income Per Share:

Basic income per share is calculated using the weighted average number of common shares outstanding during each period. Diluted income per share includes the net additional number of shares that would be issued upon the exercise of stock options using the treasury stock method. Options are not considered in loss periods as they would be antidilutive. The dilutive impact of options outstanding at July 31, 2011 and July 31, 2010 was 74,829 shares and 104,369 shares, respectively.

(e) Warranties and Service

The Company warrants its products for one (1) year from the date of sale as to materials and six (6) months as to labor, and offers a service plan for other required repairs and maintenance. The Company maintains an accrued liability for expected warranty claims. The warranty accrual is based on historical warranty costs, the quantity and types of balers under warranty, and known warranty issues.

Following is a tabular reconciliation of the changes in the warranty accrual for the nine-month period ended July 31:

	2011			2010
Beginning balance	$	49,859		$	55,059
Warranty service provided		(112,759	)		(55,443	)
Warranties issued		98,265			46,615
Changes to pre-existing warranty accruals		19,494			8,828
Ending balance	$	54,859		$	55,059

(f) Recently Issued Accounting Pronouncements

In October 2009, the FASB issued ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements.” ASU 2009-13 amends existing revenue recognition accounting pronouncements that are currently within the scope of FASB ASC Topic 605. This consensus provides accounting principles and application guidance on how the arrangement should be separated, and the consideration allocated. This guidance changes how to determine the fair value of undelivered products and services for separate revenue recognition. Allocation of consideration under this pronouncement is based on management’s estimate of the selling price for an undelivered item where there is no other means to determine the fair value of that undelivered item. This new approach is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with early application permitted. The adoption of this standard did not have any impact on the Company’s financial statements.

(g) Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, revolving promissory note, and customer deposits, approximate their fair value due to the short-term nature of these assets and liabilities.

(h) Subsequent Events

The Company evaluated all events or transactions that occurred after July 31, 2011 up through the date the Company issued its financial statements.

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Related Party Transactions

9 Months Ended

Jul. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions

4. Related Party Transactions:

The Company has a note receivable from its former president and director totaling $21,159 and $31,157 at July 31, 2011 and October 31, 2010, respectively. Interest accrues at the rate of 6% per annum.

The Company has an agreement with the former president and director of the Company for deferred compensation payments. The Company will make payments with a present value of $97,845, payable over the next two years. A portion of the payments will be used to repay the outstanding note receivable discussed above.

Leland E. Boren, a shareholder and director of the Company, is the owner of Avis Industrial Corporation (Avis). Mr. Boren controls 51.0% of the outstanding shares of the Company. Avis owns 100% of American Baler Company, a competitor of the Company. These baler companies operate independent of each other.

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Inventories

9 Months Ended

Jul. 31, 2011

Inventories [Abstract]

Inventory Disclosure [Text Block]

5. Inventories

Inventories consisted of the following:

	July 31, 2011		October 31, 2010
Raw Materials	$	896,498	$	694,446
Work in process		1,074,877		377,977
Finished Goods		422,641		208,889
	$	2,394,016	$	1,281,312

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Condensed Statements of Stockholders' Equity Unaudited (USD $)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock, Cost
Balance at Oct. 31, 2010	$ 4,533,345	$ 61,799	$ 6,347,187	$ (1,194,231)	$ (681,410)
Balance (in shares) at Oct. 31, 2010		6,179,875			1,245,980
Issuance of 250,000 shares of Common Stock	75,000	2,500	72,500	0	0
Issuance of 250,000 shares of Common Stock (in shares)		250,000			0
Net Income	520,259	0	0	520,259	0
Balance at Jul. 31, 2011	$ 5,128,604	$ 64,299	$ 6,419,687	$ (673,972)	$ (681,410)
Balance (in shares) at Jul. 31, 2011		6,429,875			1,245,980

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Nature of Business

9 Months Ended

Jul. 31, 2011

Nature of Business [Abstract]

Nature of Business

1. Nature of Business:

International Baler Corporation (the Company) is a manufacturer of baling equipment which is designed to compress a variety of materials into bales for easier handling, shipping, disposal, storage, and for recycling. Materials commonly baled include scrap metal, corrugated boxes, newsprint, aluminum cans, plastic bottles, and other solid waste. More sophisticated applications include baling of textile materials, fibers and synthetic rubber. The Company offers a wide variety of balers, standard models as well as custom models, and conveyors to meet specific customer requirements.

The Company's customers include recycling facilities, distribution centers, textile mills, and companies which generate the materials for baling and recycling. The Company sells its products worldwide with 10% to 35% of its annual sales outside the United States.

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Condensed Balance Sheets (USD $)	Jul. 31, 2011	Oct. 31, 2010
Current Assets:
Cash and cash equivalents	$ 2,235,923	$ 2,101,204
Accounts receivable, net of allowance for doubtful accounts of $71,764 in 2011 and 2010	1,142,256	700,484
Inventories	2,394,016	1,281,312
Prepaid expense and other current assets	134,864	72,508
Deferred income taxes	105,685	435,185
Total current assets	6,012,744	4,590,693
Property, plant and equipment, at cost:	2,627,921	2,414,055
Less: accumulated depreciation	1,688,074	1,622,757
Net property, plant and equipment	939,847	791,298
Other assets:
Other assets	1,396	1,396
Due from former Director	6,321	16,319
Deferred income taxes	165,511	165,511
Total other assets	173,228	183,226
TOTAL ASSETS	7,125,819	5,565,217
Current liabilities:
Accounts payable	591,675	330,459
Accrued liabilities	335,396	278,776
Current portion of deferred compensation	67,000	67,000
Customer deposits	972,299	279,424
Total current liabilities	1,966,370	955,659
Deferred compensation, net of current portion	30,845	76,213
Total liabilities	1,997,215	1,031,872
Stockholders' equity:
Preferred stock, par value $.0001, 10,000,00 shares authorized, none issued	0	0
Common stock, par value $.01, 25,000,000 shares authorized; 6,429,875 and 6,179,875	64,299	61,799
Additional paid-in capital	6,419,687	6,347,187
Accumulated deficit	(673,972)	(1,194,231)
Total stockholders' equity before treasury stock	5,810,014	5,214,755
Less: Treasury stock, 1,245,980 shares in 2011 and 2010, at cost	(681,410)	(681,410)
Total stockholders' equity	5,128,604	4,533,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 7,125,819	$ 5,565,217