Unrestricted Net Assets (Tables)

12 Months Ended

Dec. 31, 2014

Unrestricted Net Assets

Condensed Balance Sheets

Balance Sheets	2014			2013
Assets
Cash and cash equivalents	$	61,500		$	113,700
Accounts receivable, net		1,365,000			1,512,300
Inventories		2,047,700			2,217,300
Other current assets		173,600			165,500
Total current assets		3,647,800			4,008,800
Investment in subsidiary		1,225,000			1,225,000
Property and equipment		9,904,500			10,519,200
Intercompany receivable		421,900			716,700
Other assets		310,400			324,500
Total assets	$	15,509,600		$	16,794,200
Liabilities
Line of credit	$	1,192,900		$	1,517,200
Accounts payable		2,620,000			2,524,500
Accrued liabilities		1,031,300			1,001,700
Note payable to related party		1,038,700			-
Current maturities of debt and capital leases		3,918,900			4,453,300
Total current liabilities		9,801,800			9,496,700
Long-term debt and capital leases		12,100			17,700
Notes to related parties		3,588,900			3,497,900
Severance payable		760,100			-
Total liabilities		14,162,900			13,012,300
Stockholders’ equity
Common stock		15,100,300			15,100,300
Preferred stock		227,600			227,600
Accumulated deficit		(13,981,200	)		(11,546,000	)
Total stockholders’ equity		1,346,700			3,781,900
Total liabilities and stockholders’ equity	$	15,509,600		$	16,794,200

Condensed Statement of Operations

Statement of Operations	2014			2013
Net sales	$	12,253,800		$	14,024,400
Cost of goods sold		10,249,000			11,354,400
Selling, marketing, and retail expenses		1,433,700			1,710,600
General and administrative expenses		2,538,100			2,094,200
Loss from operations		(1,967,000	)		(1,134,800	)
Other income and (expense)
Interest expenses		(518,500	)		(448,200	)
Profit (Loss) on disposal of assets		3,500			(77,600	)
Other income		46,800			138,300
Provision for taxes		-			(4,100	)
		(468,200	)		(391,600	)
Net loss	$	(2,435,200	)	$	(1,526,400	)

Condensed Statement of Cash Flows

Statements of Cash Flows	2014			2013
Cash flows from operating activities	$	(380,900	)	$	935,800
Cash flow from investing activities
Purchase of property and equipment		(105,300	)		(342,000	)
Proceeds from sale of equipment		3,500			-
Net cash flows from investing		(101,800	)		(342,000	)
Cash flow from financing activities
Net repayments on line of credit		(324,300	)		(370,500	)
Borrowing on note payable		1,000,000			-
Borrowings on long term debt		-			539,700
Repayment of long-term debt		(534,700	)		(524,100	)
Payment on obligations under capital leases		(5,300	)		(3,100	)
Net change in intercompany payable		294,800			(245,300	)
Net cash flows from financing activities		430,500			(603,300	)
Cash, beginning of year		113,700			123,200
Cash, end of year	$	61,500		$	113,700