Unrestricted Net Assets (Tables)

6 Months Ended

Jun. 30, 2012

Unrestricted Net Assets

Balance Sheets

	June 30, 2012			December 31, 2011
	(unaudited)			(audited)
Assets
Cash	$	119,500		$	187,200
Accounts receivable, net		3,031,400			2,308,400
Inventories		1,832,900			1,799,600
Prepaid expenses		179,800			126,800
Total current assets		5,163,600			4,422,000
Investment in UBIUK		1,225,000			1,225,000
Property and equipment		10,146,800			10,349,000
Intercompany receivable		348,500			231,400
Other assets		502,500			462,500
Total assets	$	17,386,400		$	16,689,900
Liabilities and Stockholders’ Equity
Line of credit	$	849,000		$	895,300
Accounts payable		1,524,500			1,511,400
Accrued liabilities		1,302,300			824,300
Current maturities of debt and leases		474,500			473,100
Total current liabilities		4,150,300			3,704,100
Long-term debt and capital leases		4,227,400			4,280,900
Notes to related parties		3,361,100			3,315,700
Total liabilities	$	11,738,800		$	11,300,700
Stockholders’ equity
Preferred stock		227,600			227,600
Common stock		15,100,300			15,100,300
Accumulated deficit		(9,680,300	)		(9,938,700	)
Total stockholders’ equity		5,647,600			5,389,200
Total liabilities and stockholders’ equity		17,386,400			16,689,900

Statements of Operations

Statements of Operations	Three months ended June 30				Six months ended June 30
	2012		2011		2012		2011
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Net sales	$	4,627,500	$	4,135,900	$	8,569,100	$	7,964,100
Cost of goods sold		3,419,100		2,998,800		6,357,700		5,786,600
Sales, marketing, and retail expenses		443,500		410,100		872,100		762,400
General and administrative expenses		462,300		449,500		968,600		982,400
Income from operations		302,600		277,500		370,700		432,700
Other		42,900		36,500		77,600		70,300
Interest expense		92,300		93,300		189,100		198,900
Provision for taxes		—		—		800		7,100
Net income	$	253,200	$	220,700	$	258,400	$	297,000

Statements of Cash Flows

Statements of Cash Flows	Six months ended June 30
	2012			2011
	(unaudited)			(unaudited)
Cash flows from operating activities	$	227,300		$	57,900
Purchase of property and equipment		(84,500	)		(256,600	)
Proceed from sale of assets		5,000			—
Net (repayment) on line of credit		(46,300	)		(923,100	)
Borrowing on long term debt		184,700			4,881,000
Repayment on long term debt		(211,800	)		(3,517,700	)
Payment on obligation under capital lease		(25,000	)		(23,300	)
Net change in payable to UBI		(117,100	)		(130,000	)
(Decrease) increase in cash		(67,700	)		88,200
Cash, beginning of period		187,200			64,900
Cash, end of period	$	119,500		$	153,100