Unrestricted Net Assets (Tables)

9 Months Ended

Sep. 30, 2013

Unrestricted Net Assets

Condensed Balance Sheets

	September 30, 2013			December 31, 2012
	(unaudited)
Assets
Cash	$	40,400		$	123,200
Accounts receivable, net		2,133,400			2,531,700
Inventories		2,128,700			1,910,500
Prepaid expenses		213,800			111,900
Total current assets		4,516,300			4,677,300
Investment in UBIUK		1,225,000			1,225,000
Property and equipment		10,743,300			10,864,600
Intercompany receivable		655,900			471,400
Other assets		325,700			268,800
Total assets	$	17,466,200		$	17,507,100
Liabilities and Stockholders’ Equity
Line of credit	$	1,771,200		$	1,887,700
Accounts payable		1,895,700			1,584,300
Accrued liabilities		1,059,700			884,300
Current maturities of debts and lease		4,581,600			453,100
Total current liabilities		9,308,200			4,809,400
Long-term debts and capital lease		-			3,982,400
Notes to related parties		3,475,000			3,407,000
Total liabilities	$	12,783,200		$	12,198,800
Stockholders’ equity
Preferred stock		227,600			227,600
Common stock		15,100,300			15,100,300
Accumulated deficit		(10,644,900	)		(10,019,600	)
Total stockholders’ equity		4,683,000			5,308,300
Total liabilities and stockholders’ equity	$	17,466,200		$	17,507,100

Condensed Statement of Operations

Statements of Operations	Three months ended September 30						Nine months ended September 30
	2013			2012			2013			2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	3,682,700		$	4,247,700		$	11,057,400		$	12,816,800
Cost of goods sold		(2,849,800	)		(3,252,000	)		(8,694,200	)		(9,609,700	)
Sales, marketing, and retail expenses		(464,100	)		(433,400	)		(1,278,700	)		(1,305,500	)
General and administrative expenses		(477,500	)		(549,300	)		(1,501,600	)		(1,517,900	)
Income (loss) from operations		(108,700	)		13,000			(417,100	)		383,700
Other income		37,700			35,100			112,100			112,700
Interest expense		(114,900	)		(94,700	)		(315,300	)		(283,800	)
Provision for taxes		—			(900	)		(5,000	)		(1,700	)
Net income (loss)	$	(185,900	)	$	(47,500	)	$	(625,300	)	$	210,900

Condensed Statement of Cash Flows

Statements of Cash Flows	Nine months ended September 30
	2013			2012
	(unaudited)			(unaudited)
Cash flows from operating activities	$	405,500		$	295,000
Purchase of property and equipment		(333,400	)		(223,700	)
Proceed from sale of assets		-			5,000
Net borrowing (repayment) on line of credit		(116,500	)		235,700
Borrowing on long term debt		539,700			184,700
Repayment on long term debt		(390,500	)		(344,300	)
Payment on obligation under capital lease		(3,100	)		(37,800	)
Net change in payable to UBIUK		(184,500	)		(177,700	)
Decrease in cash		(82,800	)		(63,100	)
Cash, beginning of period		123,200			187,200
Cash, end of period	$	40,400		$	124,100